Posted by: garispang | August 13, 2009

Singapore CPF Minimum Sum Scheme

The Minimum Sum Scheme (MSS) was introduced in January 1987 to provide CPF members with a monthly income to support a basic standard of living during retirement. When the scheme first started, members were required to set aside a Minimum Sum (MS) of $30,000 in their Retirement Account (RA) upon reaching 55. This amount is very important, especially if you want to use CPF to buy a private property.

On 1 July 1995, MSS was revised and members were required to set aside a MS of $40,000, of which at least $4,000 must be set aside in cash and the remaining $36,000 could be in the form of a property pledge. The cash portion ensured members of a monthly income in retirement. The MS was raised gradually by $5,000 a year until it reached $80,000 in 2003. A member could set aside the MS fully in cash or pledge his property up to 50% of the MS. In 2003, another round of revision to the MSS was announced. The required MS would be inflation adjusted each year from 1 July 2004, until it reaches $120,000 (in 2003 dollars) in 2013.

But do you know what is the proportion of active members who achieved the required Minimum Sum in 2008? Find out the answer here.

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