More CPF savings with new rules

More CPF savings with new rules

Joanna Seow
The Straits Times
Saturday, Jan 2, 2016


Photo: The Straits Times

Several changes to the Central Provident Fund (CPF) scheme kicked in yesterday to help workers accumulate more savings for their retirement.

The CPF salary ceiling, the maximum amount of ordinary wages that employee and employer contributions are calculated on, was raised from $5,000 to $6,000.

"Middle-income Singaporeans will be able to accumulate more CPF savings during their working years," Deputy Prime Minister Tharman Shanmugaratnam said when he announced the latest change during the Budget in February last year.

At least 544,000 CPF members are expected to benefit.

The ceiling was last adjusted from $4,500 to $5,000 in September 2011 to keep pace with income growth.

As of December 2014, there were two million active CPF members, meaning that they had at least one contribution to their accounts in that month or in the preceding three.

The annual contribution cap within the Supplementary Retirement Scheme, in which people can voluntarily save money and receive tax benefits, has also been raised to $15,300 for Singaporean citizens and permanent residents and $35,700 for foreigners. The caps were previously $12,750 and $29,750 respectively.

Workers aged 50 to 65 also saw their CPF contribution rate rise yesterday. Their employers will contribute from 0.5 to 1 percentage point more of their wages into their Special Accounts. This brings the total employer contribution to between 9 and 17 per cent, depending on the employee's age group.

Workers aged 55 and above now also receive an extra 1 per cent interest on the first $30,000 of their CPF savings, on top of the existing 1 per cent extra interest on the first $60,000 of savings.

This means that the first $30,000 in their Special, Retirement or Medisave accounts can earn up to 6 per cent interest, based on the prevailing rates.

While the changes will be a boon for many workers, some such as training executive Fion Lau, 41, feel that they do not go far enough to provide retirement adequacy.

She said: "The revised changes in CPF rates are minuscule in enabling employees to accumulate retirement funds in the form of CPF savings, especially in the light of very hefty increases in property prices over the last few years."

Source --> http://news.asiaone.com/news/business/more-cpf-savings-new-rules

leech ah leech

ownself talk ownself

"Middle-income Singaporeans will be able to accumulate more CPF savings during their working years," Deputy Prime Minister Tharman Shanmugaratnam said when he announced the latest change during the Budget in February last year.

What's there to benefit when you are more burdened mentally.

hurray for less take home income??

don't see how we achieve savings instead of loss of income from such perceptual funds...

Acedemond wrote:don't see how we achieve savings instead of loss of income from such perceptual funds...

eversince they say increase gst ish to help the poor, moi ish gave up on making sense their logic. ivorytower think differently

huat ar

save ki lan pui~~~

Heng my salary $1.5k nia.. So not affected.

Knn and I thought I hit limit liao, now still need to pay more money.

CB pap

knn just when my salary gonna reach 5k+ this happens.. PUI!!! LEECH! FUND TEMASICK GAMBLING !

|||||||||| wrote:Knn and I thought I hit limit liao, now still need to pay more money.

CB pap

I feel you bro.. Pui chao nua...

RockAndBend wrote:knn just when my salary gonna reach 5k+ this happens.. PUI!!! LEECH! FUND TEMASICK GAMBLING !

haha forever shit goalpost huan

Means what? Last time u earn $6k, u only contribute 20% of $5k but now u must contribute 20% of $6k?

gigigigi wrote:

RockAndBend wrote:knn just when my salary gonna reach 5k+ this happens.. PUI!!! LEECH! FUND TEMASICK GAMBLING !

haha forever shit goalpost huan

Goal post keep moving.. I think i need to chiong again liao... annual 20% increment bo gao chase the goal post...

complain for what. 70% voted for this

goal post size change

Whisper wrote:Means what?  Last time u earn $6k, u only contribute 20% of $5k but now u must contribute 20% of $6k?

yes.. from 1000 to 1200.. $200 more to gambling fund lor

Song boh.... Luckily I self employed...

kok leong wrote:complain for what. 70% voted for this

70% voted and deserve this, I'm not the 70% to ownself fuck ownself.

RockAndBend wrote:knn just when my salary gonna reach 5k+ this happens.. PUI!!! LEECH! FUND TEMASICK GAMBLING !

when chiu reach 6k the limit would be 7k loh.
moar savings; moar goot years ahead!!!

HUAT ARHH!!! JOIN THE WHITE SIDE! Confidence for the future !!

gigigigi wrote:

Acedemond wrote:don't see how we achieve savings instead of loss of income from such perceptual funds...

eversince they say increase gst ish to help the poor, moi ish gave up on making sense their logic. ivorytower think differently

actually that make sense but the amount that should be given back from the tax should be higher;
else it is benefiting the government itself...

70% voted this...