The minimum sum for the Central Provident Fund (CPF) and Medisave will be raised from July 1.
Account holders who turn 55 between July 1 and June 30 next year will need to set aside a minimum sum of $148,000 in their CPF retirement account. This is up from the $139,000 required last year.
Meanwhile, the minimum sum for healthcare savings scheme Medisave will be raised to $40,500, up from the current $38,500. This is the amount that a person turning 55 has to set aside for healthcare expenses in his old age.
In a statement released on Tuesday, the CPF Board said that the maximum amount of money one can have in his Medisave account, known as the Medisave Contribution Ceiling (MCC), would also be increased accordingly to $45,500. It is now at $43,500. It added that the CPF minimum sums have been adjusted over the years to account for inflation, longer lifespans and rising expectations of quality of life after retirement.