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The Board would like to remind CPF members of the following changes to the CPF schemes which will take effect from 1 January 2007.
MEDISAVE REQUIRED AMOUNT
CPF members who turn 55 and are able to meet the CPF Minimum Sum are required to set aside a Required Amount in their Medisave Account when they make a CPF withdrawal. If members have less than the Required Amount in their Medisave Accounts, their Ordinary and/or Special Account balances in excess of the Minimum Sum will be used to top up the Required Amount.
The requirement for members to set aside the Required Amount in their Medisave Account is to enable members to have enough savings to meet their healthcare needs during old age.
From 1 January 2007, the Required Amount will be raised from the current $8,300 to $11,500, after adjusting for inflation. The Required Amount will increase by $2,500 (in 2003 dollars) each year until it reaches $25,000 (in 2003 dollars) on 1 January 2013.
HOUSING WITHDRAWAL LIMIT
The cap on the CPF withdrawal limit for the purchase of private residential properties and HDB flats financed with bank loans will be reduced from the current 132% to 126% of the Valuation Limit, and thereafter, by another 6 percentage points to 120% on 1 January 2008. This is to encourage prudence in the use of CPF savings for properties so that members will have enough savings in their CPF accounts to meet their retirement needs.
For more details, please log on to www.cpf.gov.sg or call the CPF Call Centre at 1800 - 227 1188. |