CPF Min Sum Cash Component raised to S$65,500 from 1 Jul

[Dennis Ng]

For those who buy 2nd property from 1 July 2011 onwards, need to set aside S$65,500 (combined balance in CPF Ordinary Account and CPF Special Account) before they can use CPF for purchase of 2nd property, instead of S$61,500, this is S$4,000 more.

In 20 years' time, most people will NOT be able to withdraw much CPF at age 55, as the CPF min sum then might be S$200,000, at the rate they are raising the limit.

Cheers!

Dennis Ng


31/5/2011

SINGAPORE: From July, the prevailing CPF minimum sum (MS) will be revised upwards to S$131,000, up from S$123,000. The CPF Board said the new MS will apply to
members who turn 55 from July 1 2011 to June 30 2012.

It was announced in August 2003, that the minimum sum would be raised gradually to reach S$120,000 (in 2003 dollars) in 2013.

CPF Board said the increase in minimum sum, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.

Members who can set aside the MS fully in cash can apply to commence their monthly payouts of S$1,170 when they reach their draw down age.

Also from July, the Medisave Minimum Sum (MMS) will be raised to S$36,000 from S$34,500.

Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.

The maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC), is fixed at S$5,000 above MMS and this would
be increased correspondingly to S$41,000, from S$39,500.

Any Medisave contribution in excess of the prevailing MCC will be transferred to the member's Special Account if he is below age 55 or to his Retirement Account if he is
above age 55 and has a MS shortfall.

The revisions to MMS and MCC are to ensure that Singaporeans have sufficient savings to meet their healthcare expenses, and have been adjusted for inflation.

-CNA/ac

[candy_chia]

From 1 July 2012 onwards, one need to set aside S$69,500 (combined balance in CPF Ordinary Account and CPF Special Account) before tapping on CPF for purchase of 2nd property if you are currently servicing the housing loan instalment utilizing CPF.


From CPF website:
For owners who have used or are using CPF for an existing property, they must SET ASIDE HALF of the the prevailing MINIMUM SUM before they can use the excess savings in their Ordinary Account for the 2nd/subsequent property.

* The Minimum Sum changes every July.

http://ask-us.cpf.gov.sg/Home/Hybrid/th ... 2ndPty.pdf