Singaporeans who turn 55 years old between 1 July 2014 and 30 June 2015 will have to set aside $155,000 in their retirement accounts, up from the existing $148,000.
According to CPF Board, $155,000 is equivalent to $117,500 in 2003 dollar terms. Therefore, by next year, the CPF Minimum Sum will be able to reach the $120,000 in 2003 dollar terms. From 2016 onwards, the CPF Minimum Sum will only be adjusted upwards based on inflation rate.
The Medisave Minimum Sum will be raised to $43,500 from 1 July 2014. Only amount in excess of the CPF Minimum Sum and the Medsiave Minimum Sum can be withdrawn from the CPF accounts at age 55.
Correspondingly, the Medisave Contribution ceiling will also be increased from $45,500 to $48,500 with effect from 1 July 2014.