Tag Archives: CPF minimum sum

Basic Retirement Sum a more realistic amount for workers

Source: The Straits Times 4 Feb 2015

Source: The Straits Times 4 Feb 2015

National Trades Union Congress (NTUC) said an advisory panel’s proposal to revaluate the CPF Minimum Sum to the Basic Retirement Sum is good as it is a more achievable amount for most employees to achieve retirement adequacy. NTUC supports the use of long-term inflation to accustom the Basic Retirement Sum, which could provide more predictability. NTUC also urged the Government to make sure that the public is well informed beforehand on any adjustments to the Basic Retirement Sum to ensure transparency on the calculated adjustments. NTUC also suggested that the government introduce incentives to encourage members to retain their retirement savings so that their monthly pay outs will not reduce.


Do you agree with the new proposal of having the basic retirement sum is a good idea? Will you be able to hit the basic retirement sum when you retire? However, is the basic retirement sum sufficient to sustain your ideal retirement lifestyle?

Please like & share:

7 things to know about CPF Minimum Sum

Source: The Straits Times,  21 Jan 2015

Source: The Straits Times, 21 Jan 2015

The Minimum Sum is the amount that must be retained in Central Provident Fund (CPF) for retirement when a member turns 55. 50% of the sum can be in the form of a pledge from a property purchased with CPF savings. The Minimum Sum provides CPF members with monthly payouts during retirement. It varies from the age of individuals and is adjusted with inflation. When a member turns 55, money from his Special and Ordinary accounts will be transferred into a newly-formed Retirement account. The Retirement account will hold up to S$155,000 or it varies with his age-group. Any extra will continue to grow in his respective accounts.

A member can still withdraw up to the first $5,000 from his CPF account even though he is unable to meet the Minimum Sum as the CPF board will immediately pledge the property he purchase during his CPF for up to half the Minimum Sum. Upon reaching 65 years of age, members will get monthly payouts, depending on the cash savings he has in his Retirement account. For members who do not make any withdrawal, money in their Ordinary account will earn up to 3.5% per annum. For Special, Medisave and Retirement accounts, the current interest rate is up to 5% annually.

Members can choose not to set aside the Minimum Sum unless they have purchased life annuity with payouts that is equivalent or more than their expected retirement sum. Over the years, the minimum Sum was set at $80,000 in 2003 and has rose over the years to match up with inflation and higher standard of living.


Will you reach the minimum sum when you retire? Are you aware how much do you need for retirement? Besides CPF’s retirement account, do you have other sources of money for retirement? What happens if you do not have enough for retirement and you are too old and weak to work?

Please like & share: