Questions: CPF, Minimum Sum & CPF LIFE

[teerance85]

One must Also meet the medisave min sum before the rest can be withdrawn. In addition, if one do not meet the medisave required amout, the account need to be top up from the other accounts before one can withdraw the rest. Bloody confusing rules.

If you have $148,000 in the min sum, there is a 90% chance that your medisave can be fulfilled. Why do i say this? This is because of your constant working contributions from your employment.

 

[henrylbh]

If you have $148,000 in the min sum, there is a 90% chance that your medisave can be fulfilled. Why do i say this? This is because of your constant working contributions from your employment.

Agree that those who meet the min sum, are also most likely to meet the medisave min sum. But some need to use medisave frequently and some use it like it's not their money. Even hospital staff would tell you that you "can claim from medisave" instead of you "can use your medisave".

 

[henrylbh]

I think if you reach 55 and meet the min sum, the board will also retain the the medisave min sum. You need request to withdraw the difference between medisave min sum and medisave required amount. If you stop working and contributing to CPF, then the difference (between MMS and MRA) not withdrawn will become not withdrawable in future as the MRA amount rises every year.

 

[teerance85]

I think if you reach 55 and meet the min sum, the board will also retain the the medisave min sum. You need request to withdraw the difference between medisave min sum and medisave required amount. If you stop working and contributing to CPF, then the difference (between MMS and MRA) not withdrawn will become not withdrawable in future as the MRA amount rises every year.

I doubt so. The medisave monies should not be transferred or withdrawn unless the individual does a withdrawal application. At the point of application, if the individual has $40,500 (Current Medisave Min Sum), then the excess amount can be withdrawan. If the individual has less then $38,500 (Current Medisave Required Amount), then the monies would have to transfer to medisave first, then the rest can be withdrawn. I think so.

 

[mmlfreedom]

from the cpf website, the minimum sum only show until 2015? will it continue to raise beyond 2015?

 

[lzydata]

from the cpf website, the minimum sum only show until 2015? will it continue to raise beyond 2015?

It's only till 2015 because the board has been following a plan since 2003 to gradually raise the minimum sum to $120k in 2003 dollars. Based on 2013's MS of $148k and current projected inflation, the 2014 and 2015 MS should be around $155k and $162k respectively.

After 2015, who knows. I believe no decision has been made. But in order to preserve the real value of the MS, and by extension the real value of the CPF LIFE payouts to retirees, the government could decide to adjust it for inflation every year.