Dec 20th, 2011 @ 11:10 am › theonlinecitizen
~by: Leong Sze Hian~
I refer to the report “CPF keeps 4% Special and Medisave Account interest rate” (Channel NewsAsia, Dec 19).
It states that “from January 1 next year, the Medisave Required Amount (MRA) will be raised from the current S$27,500 to S$32,000”.
This is an increase of about 16 per cent ($32,000 divided by $27,500).
Since the annual inflation rate for 2010 was only 2.8 per cent (see HERE), why is the MRA increase about six times more than inflation? (16 divided by 2.8 per cent)
Minimum Sum plus MRA?
Those who can meet the CPF Minimum Sum (MS), currently at $131,000, will also have to meet the MRA of $32,000, at age 55.
For example, if you have $180,000 in your Ordinary and Special accounts, and 0 in your Medisave account, you can only withdraw $17,000 ($180,000 minus MS $131,000 minus MRA $32,000), at age 55.
How many Singaporeans are estimated to have more than $163,000 when they reach 55?
55 withdrawal rule reduce from 20 to 10%
As the MS withdrawal rule at age 55 will be reduced from the current 20 per cent to 10 per cent, from 1 January 2012, anyone with less than $145,556 ($131,000 divided by 0.9), in the Ordinary and Special accounts, can withdraw only 10 per cent of the balance in the Ordinary and Special accounts, or $5,000, whichever is the higher.
For example, if you have $120,000, you can only withdraw $12,000 (10 per cent of $120,000) at 55.
How many Singaporeans are estimated to have the MS of $131,000, when they reach 55?
