New CPF Minimum Sum
From 1 July, the Central Provident Fund (CPF) minimum sum is revised to $148,000. CPF members who turn 55 between 1 July 2013 and 30 June 2014 have to set aside the CPF minimum sum of S$148,000 into the retirement account (RA).
The CPF minimum sum is revised yearly for inflation, and the minimum sum for 2012 was S$139,000.
The Medisave minimum sum and Medisave contribution ceiling is also raised S$40,500 from 1 July 2013, capped to a maximum of S$45,500.
Sellers and seller agents are reminded to do proper calculations and factor in the new minimum sum in their sales proceedings. A source working within CPF said that there are many cases of HDB sellers who find that their sales proceedings are clawed back to CPF, claiming ignorance. Seller agents are advised to exercise due diligence in doing financial calculations.
Article written by Jonathan