Tuesday, December 9, 2008

CPF 101: Knowing your CPF account ( Part 2 )

  • When you reach 55, a Minimum Sum will need to be set aside. The Minimum Sum is currently $106,000. This sum will gradually increase to $120,000 (in 2003 dollars, i.e it will be further adjusted according to inflation) by 2013. The excess can then be withdrawn in one lump sum.
  • The Minimum Sum may be used to purchase life annuity with participating insurance company, placed with a participating bank, or left into your Retirement Account (current interest rate: 4%). Monthly payments will be made from age 62 until the Minimum Sum is exhausted. With life annuity, your monthly payments will continue for life.
  • These are the very basics of your CPF account. More information, such as on housing schemes and the various types of investments you can make with your CPF savings, is available on the CPF website, www.cpf.gov.sg.
  • You may check your CPF statement and make transfers from your Ordinary Account to your Special Account simply by logging in on the CPF website. All you will need is a SingPass (apply online), which will be mailed to you within a week.

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