CPF issue: 15 per cent use properties to meet up to half of Minimum Sum
Published on Jul 8, 2014 2:18 PM
SINGAPORE - About 15 per cent of active Central Provident Fund members used their properties to help meet up to half of the Minimum Sum last year, Minister for Manpower Tan Chuan-Jin said in Parliament on Tuesday.
He gave this figure when pointing out that, contrary to what some might believe, only half the Minimum Sum needs to be set aside in cash. Savings above that amount can be used to finance housing purchases, or be withdrawn through a property pledge.
The Minimum Sum is the amount a CPF member must set aside in his Retirement Account on turning 55.
In 2013, 50 per cent of those who turned 55 that year met the Minimum Sum. That includes those who did not have enough savings in their CPF and thus had their housing withdrawals pledged to meet it, as well as those who did meet it but pledged their property so they could withdraw CPF savings above half the Minimum Sum.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here