CPF Minimum Sum to be raised to S$161,000

The Minimum Sum for Central Provident Fund (CPF) members turning 55 from July 1 next year will be S$161,000, Prime Minister Lee Hsien Loong said yesterday.

Although he said he did not see a need for more “major increases” in the Minimum Sum beyond this “final instalment” of a series of hikes since 2003, Mr Lee noted there would still be a need to adjust it “from time to time” as lifespan, income and basic spending needs go up.

A panel will be set up to look at the Minimum Sum needed beyond next year to deliver a basic retirement payout, he said.

The Minimum Sum was set at S$80,000 in 2003, but the Government announced that it would raise it, over 10 years, to S$120,000 in 2003 dollars, so CPF members would have enough in their retirement to meet the basic needs of a typical retired household. The timeline for reaching the target was extended in 2013 by two years due to high inflation.

The Minimum Sum for next year’s cohort was based on official projections of 1.5 to 2 per cent inflation this year, said the Ministry of Manpower.

Setting aside the Minimum Sum at age 55 allows for lifelong monthly payouts, starting at age 65, under CPF LIFE to meet their basic living expenses in retirement. XUE JIANYUE