Relentless increase in CPF & Medisave Minimum Sums to $198,500?

We refer to the article “CPF Minimum Sum to be raised to $155,000 from July 1” (Straits Times,  May 8).

Minimum Sum increased to $155,000

It states that “The Minimum Sum will be raised to $155,000 for them, up from $148,000 for those turning 55 between July 1 last year and June 30 this year.”

“In order to maintain its real value over time, the Minimum Sum increases to account for inflation,” the CPF Board and Manpower Ministry (MOM) said in a joint statement on Thursday.”

Inflation 2.4%, but minimum sum increased 4.7%?

– Since for the whole of 2013, CPI-All Items inflation averaged 2.4 per cent, sharply lower than the 4.6 per cent in 2012 – Why is it that the minimum sum is being increased by 4.7%?

Medisave Minimum Sum increased by 7.4% to $43,500?

Similarly, why is the Medisave Minimum Sum being increased by a whopping 7.4%, from $40,500 to $43,500?

No debate in Parliament?

As I understand that the mandate to increase the minimum sum was supposed to end last year – shouldn’t such an important issue as continuing to increase it – be debated in Parliament?

How many have $198,500?

How many Singaporeans who reach age 55 will have $198,500 in their CPF? About 1 in 8 Singaporeans?

Minimum Sum target exceeded by $40,202?

By the way, I believe the original mandate to increase the minimum sum to $120,000 in 2003 dollars was for the minimum sum only. Now, with the inclusion of the Medisave Minimum Sum – the total sum of $198,500 to be retained at age 55 may already far exceed it.

Since “the $155,000 Minimum Sum is equivalent to $117,500 in 2003 dollar terms” – the equivalent of $120,000 in 2003 dollars is now $158,298. So, the sum total of $198,500 may already be $40,202 in excess of the original minimum sum target mandated by Parliament about a decade ago.

SY Lee and Leong Sze Hian

Protest at Speakers’ Corner?

P.S. Do you think Roy Ngerng and Han Hui Hui should organise a protest on CPF on Saturday (May 24) 5 pm at speakers corner? – Why was enhanced CPF Nomination not reported in media since January 2011? Why increase CPF and Medisave Minimum Sums to $198,500?

About the Author

Leong
Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.