How to avoid the CPF minimum sum


The topic on the CPF debate is now in full swing in Parliament. So whilst it’s being trashed out by MPs, let’s talk about the Minimum Sum!

The Mimimum Sum, is really just an amount that would support a modest standard of living, in your retirement. The CPF Board is a Trust, an organisation that manages your money on your behalf so that the ordinary citizen could never overspend the money before his/her life is over.

Some Wills operate this way – simply because the person leaving the Will wants to protect the interests of the beneficiary.

From July 2014, a person turning 55 would need to set aside $155,000 as the Minimum Sum.

You can, however, exempt yourself from Minimum Sum if you do these:

  • Pledge your property to offset half of the Minimum Sum
  • Have an annuity that pays you over $1200 per month
  • Be above 56 years of age. If you are, your minimum sum is much lower

On turning 55, the best thing you should do is consult your financial advisor on the options available. Or actually, really, better-ly…if you can, why not just leave it with the CPF, because it pays better rates than the banks.

CPF_3 tips


Recommended for you

        »  Roy for nominated member of Parliament?!
        »  Entrepreneurs in Singapore: Rice & Fries
        »  10 Quirky Places To Entertain Your Foreign Friends In Singapore
        »  Your Letters: If not the GIC, then who?
        »  Cabbie shares his thoughts on Grab Taxi and the driving life…



About the author

Tay Leong Tan

Tay Leong Tan is a collective of 3 writers. Tay, Leong and Tan. (Who were you expecting?!) We are enthusiastic about labour issues, economics and current affairs in particular.

View all posts


Share your thoughts!