therat 18 Report post Posted May 31, 2011 http://news.omy.sg/News/Local%2BNews/Story/OMYStory201105311105-249224.htmlThe Ministry of Manpower announced in August 2003 that the CPF Minimum Sum (MS) will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. In line with this policy, from 1 July 2011, the prevailing MS will be revised to $131,000, up from $123,000. Members who can set aside the MS fully in cash can apply to commence their monthly payouts of $1,170 when they reach their draw down age. The new MS will apply to CPF members who turn 55 from 1 July 2011 to 30 June 2012. Medisave Minimum Sum and Medisave Contribution CeilingFrom 1 July 2011,a. The Medisave Minimum Sum (MMS) will be raised to $36,000 from $34,500. Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.b. The maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC), is fixed at $5,000 above MMS and this would be increased correspondingly to $41,000, from $39,500. As announced previously, any Medisave contribution in excess of the prevailing MCC will be transferred to the member’s Special Account if he is below age 55 or to his Retirement Account if he is above age 55 and has a MS shortfall. The revisions to MMS and MCC are to ensure that Singaporeans have sufficient savings to meet their healthcare expenses, and have been adjusted for inflation. CPF Board organises free talks monthly for members reaching 55To help members reaching 55 better understand the MS and make informed choices about their CPF savings, CPF Board has been conducting free ‘Reaching 55’ talks every month for members. The upcoming ‘Reaching 55’ talks are:Date: 29 June 2011 (Wed)Time: 7.00pm – 8.30pmLanguage: EnglishVenue: 6 Shenton Way, DBS Building Tower 1, DBS Auditorium Level 3Date: 14 July 2011 (Thu)Time: 7.00pm – 8.30pmLanguage: MandarinVenue: 79 Robinson Road, CPF Building, Conference Room Basement 1 Interested members may register at the CPF website (www.cpf.gov.sg/seminar), or at any AXS station. Share this post Link to post Share on other sites
joey8 2 Report post Posted June 1, 2011 Oh my God, the CPF minimum sum from 1 july 01 going to increase to $123,000??Looks like not much to retire now, leh ... Share this post Link to post Share on other sites
marshmallow 0 Report post Posted June 1, 2011 again... by the time i reach 55, the min sum probably becomes $1mil liao Oh my God, the CPF minimum sum from 1 july 01 going to increase to $123,000??Looks like not much to retire now, leh ...it's going to be $131,000 it is already $123,000 currently. Share this post Link to post Share on other sites
forgotten 1 Report post Posted June 1, 2011 20% + 15% of our income will be written off as bad debt.This is to make us repent until the day we step into our coffin. We have no dignity left. Share this post Link to post Share on other sites
bepgof 20 Report post Posted June 1, 2011 My cpf $ par par: OA+SA+inv = $160k+, can see cannot touch till 55. 40% to 30%, now how many %??. One month takes $300 to drink coffee?Or, better to sell off all property and take all money & go holiday (hope by then heath condition allow) & rent the hdb flat? Claim that children don't want us? Share this post Link to post Share on other sites
Warrior88 0 Report post Posted June 2, 2011 (OA+SA)$131,000 / 2 = $65,500, this is half the minimum sum that can be pledge from your property. Only after setting aside this amount, we are allow to use our CPF for housing loan. Badly affect are those who are currently using some cash to pay loan, the increase is 8,000, So, they will be short of 4,000 after 1/7/2011. Share this post Link to post Share on other sites
bepgof 20 Report post Posted June 2, 2011 My SA is quite "solid", almost near 131k liao.Good news: from 1 sept 2011: employer contribution up another 1%, and, employee's salary cap will increased from $4500, to $5000. These 2 "good news" = "extra" $ goes into OA liao, chiong ah.(OA+SA)$131,000 / 2 = $65,500, this is half the minimum sum that can be pledge from your property. Only after setting aside this amount, we are allow to use our CPF for housing loan. Badly affect are those who are currently using some cash to pay loan, the increase is 8,000, So, they will be short of 4,000 after 1/7/2011. Share this post Link to post Share on other sites
edenstrauss 3 Report post Posted June 2, 2011 That meant that we must sell & buy another flat before we reach 55 years old, otherwise, can end up selling off the flat & $ XXX,XXX amount gets retained in the CPF account as minimum retirement sum; and only left with very little CPF funds to be used for paying off the new flat - one uncle here ended up having to cancel his sale of flat here at our place with the buyer becox he cannot afford to buy another place becox he had already reached 58 years of age.And the banks will not grant him any loans in view of his age & ability to draw any stable income.Why must the government make things so tough for the average working class singaporean?By the time we folks reach our retirement age, there are chances that we have to stay along the streets after selling our flat So want to shift mux make sure we shift before 55 years of age ... unless we are cash rich folks who can afford to top up with cash. But unfortunately, I'm not leh. Share this post Link to post Share on other sites
Warrior88 0 Report post Posted June 2, 2011 My SA is quite "solid", almost near 131k liao.Good news: from 1 sept 2011: employer contribution up another 1%, and, employee's salary cap will increased from $4500, to $5000. These 2 "good news" = "extra" $ goes into OA liao, chiong ah.Bro, must still make your money work harder le. Though I know you are into investment like stock/property and insurance. Another 3 more years, you 50 liao, your OA got cut 6%(4=employer/2=yourself). Then another 5 years later(OA got cut 9.5%)Minumum cum might be raised until 2013 (150~160K). You got house loan..etc. So by 55, you get 20% of your retirement accounts. draw down age set at 65. Got 10 years before your next Ang Pow. Then, they lock $40K for your CPF Life again. So ang pow get smaller. So you got 2 choices, own more house for rental income or buy HDB studio apartment and then your money is really par par ..hehe Share this post Link to post Share on other sites
bepgof 20 Report post Posted June 2, 2011 Bro, must still make your money work harder le. Though I know you are into investment like stock/property and insurance. Another 3 more years, you 50 liao, your OA got cut 6%(4=employer/2=yourself). Then another 5 years later(OA got cut 9.5%)Minumum cum might be raised until 2013 (150~160K). You got house loan..etc. So by 55, you get 20% of your retirement accounts. draw down age set at 65. Got 10 years before your next Ang Pow. Then, they lock $40K for your CPF Life again. So ang pow get smaller. So you got 2 choices, own more house for rental income or buy HDB studio apartment and then your money is really par par ..heheWith this MMS keeps increasing, those reaching 55 very likely to sell away "bigger" house and stay in smaller one and get some cash out to really "enjoy life" first, I foresee this is the trend. Share this post Link to post Share on other sites
therat 18 Report post Posted June 2, 2011 With this MMS keeps increasing, those reaching 55 very likely to sell away "bigger" house and stay in smaller one and get some cash out to really "enjoy life" first, I foresee this is the trend.My plan was.. sell away existing one.Downgrade to studio apartment.extra one...pocket money.If in time and had $$. Might buy a property and collect rental for pocket money.CPF.. I don't expect to see them in my life time.the government will keep on shift their goal pole. Share this post Link to post Share on other sites
Warrior88 0 Report post Posted June 2, 2011 (edited) My plan was.. sell away existing one.Downgrade to studio apartment.extra one...pocket money.If in time and had $$. Might buy a property and collect rental for pocket money.CPF.. I don't expect to see them in my life time.the government will keep on shift their goal pole.Sis,Studio Apartment after 5 years then can buy private....I calculate for 80k for 30 lease, you are paying $222 per month, like renting from them.Some more must pay all upfront. Good thing no need to pay sale levy. Lease extension subject to approval, wonder 55+30, still survive ? Also,HDB will pay, at its absolute discretion, a pro-rated sum of the original selling price based on the remaining lease.Wah, if price go up, they buy back the using original, but resale at current price. HDB profit the balance le. (should be term, sell back at whichever at the higher price)By the way, let me clarify on the subject of sell HDB bef/aft 55On/After 2013, if turn 55, must set aside CPF Minimum Sum (~160K) and Medisave Minimum Sum (~55k) , Balance can take as lump sum. CPF Minimum Sum = OA+SA+investment (RA)If short of both Sum, you still get token of $5,000If you already set aside this and assuming it did not reduce as you are still contributing, then selling your HDB after 55 will not affect you. Since you had set aside both CPF & Medisave SumFor those whose both CPF & Medisave MS is shortfall at age 55, CPF cannot forget you. hehe.So when you sell you house after 55, die die they want you to top up the shortfall before the cash proceeds.By the way, there are 2 calculation for sales after 55. Depends on the principal CPF used + accrued interest. Let me give 2 example. This rule start from 1-1-2009Person XA)CPF MS=160kB)RA =50k (OA+SA+invest)C)Principal Used + Accrued Int = 100kMust refund = 100k © , since (A)-(B)=110k , refund whichever lowerPerson Y = use more ©A)CPF MS=160kB)RA =50k (OA+SA+invest)C)Principal Used + Accrued Int = 200kMust refund = (A)-(B)=110k , since©=200k , refund whichever lower Edited June 2, 2011 by Warrior88 Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted June 2, 2011 yes, goal post keeps shifting. The launch of CPF Life is already evidence. so we need to start saving for retirement funds which we can see and touch separately. No easy way out. The sooner u realise and act on it, the more u can spend in future. Boy, im starting to sound like an insurance salesman....hahah! Share this post Link to post Share on other sites
therat 18 Report post Posted June 2, 2011 Sis,Studio Apartment after 5 years then can buy private....I calculate for 80k for 30 lease, you are paying $222 per month, like renting from them.Then I buy private property 1st before I sell away present one.But.. then still can buy studio or not???Hmmm... look like present rule.. cannot horwah liao.. like that.. how to be landlord...80k... we will pay full. Can use CPF to pay , right?BTW, just look at HDB , studio requirementYou must be at least 55 years old at the time of application.CHEY Share this post Link to post Share on other sites
bepgof 20 Report post Posted June 2, 2011 Staying in studio apartment, everyday mix around with those "55+", sure get old faster le. Then I buy private property 1st before I sell away present one.But.. then still can buy studio or not???Hmmm... look like present rule.. cannot horwah liao.. like that.. how to be landlord...80k... we will pay full. Can use CPF to pay , right?BTW, just look at HDB , studio requirementYou must be at least 55 years old at the time of application.CHEY Share this post Link to post Share on other sites
