Thursday, May 8, 2014

CPF minimum sum 2014

The CPF minimum sum will be raised to S$155,000 for those who turn 55 between July 1 this year and June 30 next year. 

Back in Jan 2014, I made an estimate of the CPF minimum sum on these 2 posts:

In this estimate, I calculated the estimated minimum sum based on an inflation rate of 2.4%. My calculations worked out to be $154800 which is quite close to the announced figure of $155000. Perhaps CPF board rounded the nearest $1000 or $500 instead of $100 in my calculations.

I have also done a small revamp on the 30 year projection to include actual values.

Increase in Medisave min sum
From July 1, the Medisave Minimum Sum will also be raised to S$43,500 from S$40,500, while the Medisave Contribution Ceiling will be increased correspondingly to S$48,500, from S$45,500.

For people who have hit the contribution ceiling, any Medisave contributions will go to your special account instead. Both account currently earns you an interest of 4% per year.