THE Central Provident Fund (CPF) Board is reminding its members of a number of changes taking effect from July 1 to ensure they have enough funds for their retirement.
Firstly, members face new restrictions on the use of their CPF savings to buy multiple properties. For those who own a property bought using their CPF savings, they can use the funds to buy property again only after first setting aside the Minimum Sum cash component.
The cash amount they have to set aside is $47,300 from July 1. However, members can still apply to the CPF Board to use the funds a second time if they sell the existing property within a grace period.
The board will also phase out a scheme that allowed CPF savings to be used to buy non-residential properties, including offices, shops and factories.
For those who want to buy shophouses that have both residential and commercial uses, they can still apply to use their CPF savings to pay for the residential portion.
Also, excess contributions to the Medisave Account will no longer go to the Ordinary Account. Instead, for members below 55, the excess will go towards topping up their Special Account, while those aged 55 and up will see the funds go to their Retirement Account.
From July 1, the CPF Minimum Sum will increase from $90,000 to $94,600. The Medisave Minimum Sum will rise from $27,500 to $28,000, and the Medisave contribution ceiling from $32,500 to $33,000.
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