For those who are turning 55 years old on 1 Jan 2012, take note that the CPF Medisave Required Amount (MRA) is now raised from $27,500 to $32,000 now. This means that you will need to top-up the MRA amount of $32,000 before you are allowed to withdraw the excess of your CPF Minimum Sum, which is $131,000 this year.
The interest rate for Special and Medisave Account (SMA) from 1 Jan 2012 to 31 March 2012 continues to enjoy the floor rate of 4% p.a.. Savings in the SMA currently earn either 4% or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is the higher. The average yield of the 10YSGS plus 1%, from 1 December 2010 to 30 November 2011, works out to be 3.19%. Since 3.19% is lower than the floor rate, 4% p.a. interest rate applies.
Retirement Account (RA) continues to enjoy 4% p.a from 1 Jan 2012 to 31 Dec 2012. RA savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4%, whichever is the higher, adjusted yearly. Again, the floor rate of 4% applies to RA.
The floor rate of 4% p.a. for Special Account, Medisave Account and Retirement Account is valid till 31 Dec 2012.
An additional 1% interest will continue to be paid on the first $60,000 of CPF member’s combined balances, with up to $20,000 from the Ordinary Account (OA).