By: Adrian Khiat
Just to summarise what are the CPF changes wef 1st July 2008.
1. Min. Sum has increased from $99,600 to $106,000
* Members who set aside the $106,000 cash savings in their Retirement Account will receive a monthly payout of $910 from age 64 for about 20 years.
* The current MS, which applies to members who turn 55 from 1 July 07 to 30 June 08, is $99,600. The corresponding monthly payout is $790
2. New Medisave Minimum Sum increased from $28,500 to $29,500
* Members will have to set aside this amount, or the actual Medisave balance, whichever is lower, in their Medisave Account, when they withdraw their CPF at or after 55 years old.
* The current MMS is $28,500.
3. Medisave Contribution Ceiling increased from $$33,500 to $34,500
* This is the maximum balance each member may have in his Medisave Account.
* Any Medisave contribution in excess of the prevailing MCC will be transferred to the member’s Special Account if he is below age 55.
* If he is above age 55, the Medisave contribution in excess of the prevailing MCC will be transferred to his Retirement Account if he has a Minimum Sum shortfall.
* The current MCC is $33,500.
Source: Health and Wealth