CPF Minimum Sum Revised from $123,000 to $131,000

I read with interest the news about the revision to the CPF Minimum Sum. From 1 July 2011, the CPF Minimum Sum will be revised upwards from $123,000t to $131,000. This was announced by the CPF Board recently. The new Minimum Sum applies to CPF members who turn age 55 from 1 July 2011 to 30 Jun 2012. In fact, the Minimum Sum scheme was set at $80,000 in 2003 and has been revised upwards yearly, taking into account adjustments for inflation.

The Minimum Sum scheme is meant to help CPF members prepare for retirement where they can potentially have lifelong income for the rest of their lives.

Surprisingly, I noticed that many young people seemed to be unaware about the minimum sum scheme and how it applies to them. These people often have the misconception that retirement is something that they should worry about later on in their working lives and thus cannot be bothered about such schemes that will only affect them later on in life.

Please refer to the following link for more details on the CPF Minimum Sum

http://ask-us.cpf.gov.sg/Home/Hybrid/themes/CPF/Uploads/RSD_WDL/CPF_Minimum_Sum_Scheme.pdf