Change In CPF Minimum Sum Scheme
Tuesday, 1st July 2003
The CPF Minimum Sum (MS) of $80,000 is the amount you have to set aside, in your Retirement Account (RA), for retirement needs in the Minimum Sum Scheme (MSS). It need not be all in cash. Up to 50 per cent of this sum can be a property pledge ($40,000). Your RA is set up when you reach 55 and it comprises savings from your Ordinary and Special accounts. The Minimum Sum amount will adjusted annual at a rate of about 5% per year. According to government statistics, only 40% of workers were able to meet the requirement upon reaching 55 years old.
However, at age 55, members can use the minimum sum to purchase an annuity or leave with a bank or CPF board. At age 62, the money would be released monthly to create a stable income flow.