Tag Archives: Retirement

CPF valuation limit not an issue for majority of home buyers

Posted on 15 May 2012 | Comments Off on CPF valuation limit not an issue for majority of home buyers

The CPF Valuation Limit is not a constraint for most members who are servicing home loans via their CPF savings.

This is in response to MP for Pasir Ris-Punggol GRC Gan Thiam Poh’s question on whether the CPF Board will review the CPF withdrawal limit for housing.

The valuation limit restricts the amount of CPF savings members may use for property purchases to the lower of property price or property value during purchase.

This is to ensure Singaporeans’ retirement needs are not compromised when CPF savings are used to finance housing needs.

Minister of State for Manpower Tan Chuan-Jin said the number of members who can no longer use CPF savings to pay for monthly instalments after reaching the valuation limit is very small.

“But the small minority of members who may find it difficult to continue servicing their housing loans after they reach the valuation limit, CPF Board does assess the situation and has allowed them some flexibility on a case-by-case basis,” Mr Tan said.

“For example, where giving such flexibility helps them tide over a period of temporary hardship or where the member is in the midst of right-sizing his property to avoid defaults.”

“CPF Board will continue to exercise such flexibility and discretion where the case merits,” Mr Tan added.

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CPF minimum sum to be revised upwards to S$131,000

Posted on 31 May 2011 | Comments Off on CPF minimum sum to be revised upwards to S$131,000

From July, the prevailing CPF minimum sum (MS) will be revised upwards to S$131,000, up from S$123,000. The CPF Board said the new MS will apply to members who turn 55 from July 1 2011 to June 30 2012.

It was announced in August 2003, that the minimum sum would be raised gradually to reach S$120,000 (in 2003 dollars) in 2013.

CPF Board said the increase in minimum sum, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.

Members who can set aside the MS fully in cash can apply to commence their monthly payouts of S$1,170 when they reach their draw down age.

Also from July, the Medisave Minimum Sum (MMS) will be raised to S$36,000 from S$34,500.

Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.

The maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC), is fixed at S$5,000 above MMS and this would be increased correspondingly to S$41,000, from S$39,500.

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.

Source : Channel NewsAsia – 31 May 2011

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