Budget 2015 – What this means now for your CPF?

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Singapore Budget 2015 Impact on CPF

Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam announced certain enhancements to the national savings scheme in his Budget speech in Parliament on Monday (23-Feb-2015). The following are the summary of changes to the CPF as follows (starting from Jan-2016),

 

Summary

Singapore Budget 2015 Impact on CPF: Key Takeaways:
  • Increased CPF Ceiling. The CPF salary ceiling will go up to S$6,000, from S$5,000, meaning quote “a 45-year-old worker who earns S$6,000 or more today will save an additional S$60,000 by the time he reaches 65“.
  • Increased Contribution Rates. Contribution rates for workers aged 50 to 65 will be increased by 0.5% to 2% with a mix of contribution from both the employee and employer. More details at the CPF website.
  • Increased SRS. Government will raise the ann  ual contribution cap within the Supplementary Retirement Scheme from $12,750 annually currently to $15,300 annually.
  • Additional Interests. For people age 55 and above, the government would pay an additional 1% (additional) interest on the first S$30,000 of CPF balances.
  • Changes in the Minimum Sum. (a) Basic Retirement Sum is increased by 3% from 2017 to 2020; and (b) People can now choose between the Basic Retirement Sum – $80,500, Full Retirement Sum – $161,000 or Enhanced Retirement Sum – $241,500 with varying payouts for retirement.

 

Sources and Links to relevant articles 

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