Skip to main content

Advertisement

Advertisement

NDR 2014: CPF Minimum Sum raised to S$161,000 next year

SINGAPORE – The Central Provident Fund (CPF) Minimum Sum will be raised to S$161,000 next year, said Prime Minister Lee Hsien Loong at the National Day Rally this evening (Aug 17).

SINGAPORE – The Central Provident Fund (CPF) Minimum Sum will be raised to S$161,000 next year, said Prime Minister Lee Hsien Loong at the National Day Rally this evening (Aug 17).

Beyond this “final instalment” of a series of hikes since 2003, Mr Lee does not see any more major increases in the Minimum Sum although he added that there is a need to adjust it “from time to time” as lifespans, incomes and basic spending go up.

The Minimum Sum has been raised every year since it was set at S$80,000 in 2003, with an aim of reaching S$120,000 in 2003 dollars in 2015.

Increases were supposed to end last year but due to high inflation in 2012, the Government decided to spread out the remaining hikes to 2015.

Mr Lee said the old Minimum Sum was too low and the Government has taken over ten years to raise it to the current S$155,000.

“Our final instalment is next year, and it will be to S$161,000 for people turning 55 from 1 July, 2015,” said Mr Lee. “With a property pledge, you will only need half of that in cash.”

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.