THE TEMASEK TIMES

News and views from an unique perspective

CPF Minimum Sum to be raised to $139,000 to account for ‘longer’ life expectancy

Posted by temasektimes on May 30, 2012

The CPF Minimum Sum will be raised again to account for inflation, longer life expectancies and Singaporean’s rising expectations of their quality of life after retirement, announced the CPF Board and the Ministry of Manpower (MOM) in unison on Wednesday.

CPF members who turn 55 years old between 1 July 2012 and 30 June 2013 now have to set aside a Minimum Sum (MS) of S$139,000, $8,000 more than last year whether they like it or not.

The Medisave Minimum Sum (MMS) has also been increased from S$36,000 to S$38,500 to ‘help’ Singaporeans plan for their long-term healthcare needs.

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

The CPF Board pays a measly interest rate of 2.5% to savings kept in Ordinary accounts and 4% in the Special and Medisave accounts in contrast to Malaysia’s Employment Provident Fund which pays a higher interest rate of between five to seven percent.

Unlike the Malaysians, Singaporeans are NOT allowed to withdraw their CPF savings in full when they reach 55 years old of age and will be paid a monthly allowance instead for the rest of their lives.

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36 Responses to “CPF Minimum Sum to be raised to $139,000 to account for ‘longer’ life expectancy”

  1. spotlessleopard said

    The Government makes you pay taxes, gsts. indirect taxes in many forms from the day you were born ..and then tell you that you have to provide for yourself….You die that is your Problem…

    Where did all the taxes go to?

  2. corruptpapies said

    KNNBCCB, send the papies to hell. Garment no money for minister salary burn the hell notes to them

  3. BS said

    CPF is just BS, another bank acc for govt.

  4. Prob solved said

    Why not straight away raised to half a million?

  5. Obviousman said

    wow this post is dumb.What are you trying to do, make Singaporeans write in and say “Wah lau eh, Malaysia so good, I should go be a Malaysian instead”? Because if any of them do then I say blardy move across the causeway already! It’s not that difficult!! muahahahahahah

  6. SalesExec said

    Hey Temasek Times….Why always used the same old picture?
    Be more creative la. Should take a picture of a poor elderly Singaporean without job, savings, family support and a proper shelter or a sick person going to die unable to withdraw his CPF to enjoy his final stage in life.

  7. Henry said

    Obviously Temasek needs more money …

  8. I think The CPF System is going overboard, they went back to sleep last night and today they think of upping they just up, no need to seek approval no debate neccessary. What LAW IS THIS

  9. papsmear said

    Some clever askwhore loses GIC money in stupid investment again. TT, pls investigate.

  10. Not another brick in the wall said

    I doubt i can make that much of money :(

  11. Haiz said

    Sad life of a common Sin , u dun earn enough u won’t see ur cpf money even until u die it will be just paper figure so y work so hard when your young and end up as a “begger” when your old when the money is hard earn and u can’t even use it for daily expense… The age limit and min balance in the cpf keep increasing but the salary of a average Sin does not increase… So face it u won’t be able to see ur money in this life time

  12. studentinsg said

    Looks like the government is trying to get funds to sponsor their Budget 2012. Using our money once again to paste gold on their face.

    http://app.singaporebudget.gov.sg/budget_2012/default.aspx

  13. Madeoff said

    The increase is getting more and more steep, your CPF monies is correspondingly getting more and more out of your reach.

  14. PAP_is_always_right said

    I’m only 32 years old and I’ve 400-600k in assets, and it is not even enough for retirement… 139k is nothing.

  15. Ron said

    Can CPF Board show the statistics of how much was left in the CPF account upon death? Show by ages and number of deaths. In that way we know if only a few % have exhausted their CPF above a certain age. For the majority, we may be holding back too much. For those who exhaust their CPF and I guess it will be mainly due to medical expenses, then it may require some assistance based on their financial status.

  16. tryme said

    CPF is a con job. Sinkies looses either way. If Temasek & GIC looses money, they delay payment and cut cpf interest. If they make money, they earn all the profit and funnel it to their bonuses and private companies while you get less than 4% interest which also a lugi case because they raises cost of everything they control(rentals, utilities cost etc) making inflation jump above 5%. In other words, the cpf interest you get go back into their pockets!

  17. Dogmeat said

    Malaysia’s EPF is an entangled mess of cronyism and corruption under the veil of high interest rates. It is like PAP + TH + GIC + CPF merged into one entity.

  18. Foxy said

    It’s sounds like father gives monthly allowance to son. It’s our own money and why the government wants to control our money?

  19. 60+ said

    I have no money in my CPF ordinary account to service my housing loan, all go to the retirement account and I cannot touch until I reach 62. WTF, I need to borrow from the bank to service my loan, I believe there many like me, no money to service the housing loan after 55. I appeal to them to allow me to use my retirement fund to service the housing loan but KNNB, still cannot. Now raise to 139k, I hope the younger generation see this before commiting a housing loan.

    • miscalculated move said

      If you want to upgrade your home, make sure you can finish servicing your housing loan by age of 55.
      Suggest to downgrade your home now.
      Even you are allowed to use your CPF to service your housing loan now, do you have enough for retirement? If no, you might have over committed financially in your current home?

  20. 'Mk Chin said

    CPF: So Near and Yet So Far…
    Who get to enjoy our CPF monies end of the day?

  21. MP wannabe said

    139000 is peanuts la… Our MPs get 150000 a month, one year 1800000. More than enough… Wonder who are the servants.

  22. denzuko1 said

    The aurhority as I see it is seriously lacking in imagination and creativity. How many more times are they going to use the longevity card as an excuse of not giving the people back their money.

    Certainly do they even have the right to do so? As far as I know, it is a criminal offence of taking other people’s property without their consent.

    Is there more to just the issue of longevity? Or CPF actually not able to sustain continuous withdrawal by the retirees? I recall that we used to have this phrase 乐龄. we no longer use that word because retirement is not what we look forward to.

  23. ;ABC said

    To 60+, Control is the operative word. Control the media, control the dissidents, control the number of kids you can have. Did`nt LKY himself admit that the late Lim Kim San tell him to forget the elected Presincy crap and that he cannot control from the grave? Now you see the point?

  24. ;ABC said

    Typo. error. Should read Presidency.

  25. So Sad said

    http://www.transitioning.org/2012/01/21/four-shameful-foreigner-first-policies-damaging-to-singaporeans/

    Four Shameful Foreigner-First Policies Damaging To Singaporeans

    http://www.transitioning.org/2012/01/28/why-do-people-commit-suicide/

  26. x12831 said

    I had stopped looking at my CPF statement; there’s no way I could meet the new MS requirement.

    • ;ABC said

      Which clown said that he was happy every time he saw his CPF statement? There was a time long ago when people were happy to see their CPF statements. Not anymore. Many if fact dread to receive letters from the CPF. They do not bring good tidings but warn you that you that you need to top up your account or else!

  27. Be a quitter said

    Migration by giving up your citizenship is probably the only way to cash out all your CPF money.

  28. Sad Sad said

    I don’t think I will live that long. You have no right to restrict how i want to use my hardearn $$$. I just want my money back please! We can save medicine+tech improve. But take note on what we are eating…. wonder if we are really that healhty…

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