CPF - Minimum Sum (MS)

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

CPF - Minimum Sum (MS)

Postby zbear » Mon Aug 18, 2014 8:04 am

Last nite's National Day Rally, our PM said -

He announced that the minimum sum for CPF will be raised from $155,000 to $161,000 for people turning 55 from July 2015.

He does not see any need for any major increase in the minimum sum beyond that.



Does that mean MS is frozen at $161,000 from 2015 onwards?

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Re: CPF - Minimum Sum (MS)

Postby daddy2007 » Mon Aug 18, 2014 8:10 am

Unlikely will freeze. Now is to see what will be the "little" increment will be

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Re: CPF - Minimum Sum (MS)

Postby zbear » Mon Aug 18, 2014 8:14 am

Why the early announcement for next year's increase? I have been observing that MS increment announcement is made near to the implementation date n not a year ahead.

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Re: CPF - Minimum Sum (MS)

Postby slmkhoo » Mon Aug 18, 2014 8:17 am

zbear wrote:Why the early announcement for next year's increase? I have been observing that MS increment announcement is made near to the implementation date n not a year ahead.

Probably because of the complaints and protests. So he wants to say that it's part of a plan which will be completed by next year. I think beyond that, the MS will be adjusted for inflation but not increase by such large amounts.

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Re: CPF - Minimum Sum (MS)

Postby starlight1968sg » Mon Aug 18, 2014 8:20 am

Relying totally on CPF LIFE for a decent retirement is not feasible at all.

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Re: CPF - Minimum Sum (MS)

Postby slmkhoo » Mon Aug 18, 2014 8:25 am

starlight1968sg wrote:Relying totally on CPF LIFE for a decent retirement is not feasible at all.

I don't think it was ever intended to do that? And definitions of what is 'decent' vary widely. At least it can provide enough for the basics - to keep the elderly from becoming homeless and hungry. Beyond that, we still have to make our own preparations depending on what we feel is 'decent'.

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Re: CPF - Minimum Sum (MS)

Postby jetsetter » Mon Aug 18, 2014 8:51 am

zbear wrote:Last nite's National Day Rally, our PM said -

He announced that the minimum sum for CPF will be raised from $155,000 to $161,000 for people turning 55 from July 2015.

He does not see any need for any major increase in the minimum sum beyond that.



Does that mean MS is frozen at $161,000 from 2015 onwards?


Hi,

PM didn't say frozen. Will be adjusted from time to time.

Image
(BT, 18 Aug 2014)

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Re: CPF - Minimum Sum (MS)

Postby Nebbermind » Mon Aug 18, 2014 9:02 am

When he said 'final one for now', I was wondering what he meant....how long is 'now'? Literally, it is 'today' or this moment, right? SO anytime after the NDR is not now, ya?

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Re: CPF - Minimum Sum (MS)

Postby jetsetter » Mon Aug 18, 2014 9:04 am

starlight1968sg wrote:Relying totally on CPF LIFE for a decent retirement is not feasible at all.


spot on.

Recap hypothetical Mr Tan's example. Majority of audience believed Mr Tan (now age 55) needs $2k/mth for his family when he reaches 65.


If you need S$2,000 a month, you can't depend on CPF alone. You must find other sources of income. Some options include continuing to work, as in 10 years' time we will most likely have raised the re-employment age beyond 65; your children may help support you; you can draw on your personal savings; or you can get some money out of your house. You do this by renting out a room or the whole flat, or right-sizing your flat and collecting the Silver Housing Bonus.

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Re: CPF - Minimum Sum (MS)

Postby starlight1968sg » Mon Aug 18, 2014 11:10 am

overall, the more $$ the merrier.

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