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Changes to the CPF Minimum Sum, Medisave Minimum Sum and Medisave Contribution Ceiling from 1 July 2014 for a More Secure Retirement

CPF Minimum Sum to better meet Singaporeans' expectations of basic standard of living in retirement

Employment practices
  1. To cater to Singaporeans' rising expectations of what is considered a basic standard of living in retirement, the CPF Minimum Sum has been increasing for each group of members turning 55 yearly, to reach a target of $120,000 (in 2003 dollars) by 2015. In order to maintain its real value over time, the Minimum Sum increases to account for inflation.
  2. In view of this, the Minimum Sum that will apply to CPF members who turn 55 between 1 July 2014 and 30 June 2015 is $155,000. This will be set aside in their Retirement Account using savings from their Special, and then Ordinary Accounts. The Minimum Sum for CPF members who turn 55 before 1 July 2014 remains unchanged.
  3. The Minimum Sum provides CPF members with monthly payouts from the Draw-Down Age (DDA)1. Setting aside more retirement savings means higher payouts when members retire. To illustrate, under the CPF LIFE Standard Plan, setting aside the full Minimum Sum of $155,000 at age 55 provides a lifelong payout of about $1,200/month, while $75,000 will provide about $620/month.

    Medisave Minimum Sum and Medisave Contribution Ceiling to better cater for Singaporeans’ long-term healthcare needs
  4. The Medisave Minimum Sum is the amount a CPF member needs to set aside in his Medisave Account for his own and his dependants' healthcare expenses, as well as MediShield and ElderShield premiums during old age.
  5. With Singaporeans living longer and the availability of better quality of medical treatment, Singaporeans will need to save more in their Medisave Accounts to help pay for their healthcare expenses. In addition, as Medisave is opened up to more uses, regular Medisave Minimum Sum adjustments are necessary to help Singaporeans better prepare for their long-term healthcare needs.
  6. From 1 July 2014:

    a) The Medisave Minimum Sum will be raised to $43,500 from $40,500. A member will need to have this amount in his Medisave Account and also meet the CPF Minimum Sum before excess funds can be withdrawn.

    b) The Medisave Contribution Ceiling will be increased correspondingly to $48,500, from $45,500. This is the maximum balance a member can have in his Medisave Account.
  7. Any Medisave contribution in excess of the current Contribution Ceiling will be transferred to the member's Special Account, if he is below age 55, or to his Retirement Account, if he is above age 55 and has a CPF Minimum Sum shortfall.

    Public enquiries
  8. For more information, please visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188.

1 The Draw-Down Age (DDA) is the age at which members will receive monthly payouts from their CPF savings. For members who turn 55 from 2013, their DDA will be 65 years old. 
2 You can also read more from the Infographic on the CPF Minimum Sum