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Janice Heng
Sunday, Aug 17, 2014

Singapore

NDR 2014: Minimum Sum rises to $161,000 next year but 'no more major increases' afterwards

The Straits Times | Janice Heng | Sunday, Aug 17, 2014

SINGAPORE - Those who turn 55 from July 1 next year must set aside $161,000 in their Central Provident Fund accounts, up from the $155,000 Minimum Sum for this year's cohort. But after that, there will be no more major increases in the Minimum Sum, said Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday night.

 


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Mr Lee said the old Minimum Sum was much too low, and it took 10 years to raise it to its current $155,000.

But next year's instalment - the final one - will see the Minimum Sum raised to $161,000 for people turning 55 from Jul 1, 2015.

CPF members who pledge their property need only set aside half of this in cash, or $80,500.

"Beyond that, I do not see a need for any more major increases in the Minimum Sum," said Mr Lee. But he added it will still need to be adjusted from time to time as incomes go up and basic spending needs increase, and as Singaporeans live longer and need to provide more for a longer retirement.

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