Setting Aside the Medisave Minimum Sum

22 Dec 2003

From 1 January 2004, CPF members who meet the CPF Minimum Sum will have to set aside a Required Amount in their CPF Medisave account when they make a CPF withdrawal. This Required Amount will be set at $2,500 in 2004 and increase by $2,500 (adjusted for inflation) each year. If members have less than the Required Amount in their Medisave Accounts, they can use the balances in their Ordinary and/or Special Accounts in excess of the Minimum Sum to set aside the Required Amount. This includes first withdrawals by CPF members at age 55 and all subsequent withdrawals.

From 1 January 2013, CPF members who meet the CPF Minimum Sum will have to set aside the Medisave Minimum Sum (MMS) of $25,000 (in today's dollars), before making their CPF withdrawal.

This is part of the package of changes to the CPF announced by Prime Minister Goh Chok Tong on 28 August 2003.

Need for Medisave Minimum Sum (MMS)

As Singaporeans grow older, they will need to spend more on healthcare. On average, someone aged 80 spends 3 to 5 times more on healthcare than someone aged 62. Each additional year of life also adds considerably more to healthcare expenses. The purpose of the Medisave Minimum Sum (MMS), which is currently at $25,000, is to make sure that we have enough savings to meet our healthcare needs during old age.

Currently, a CPF member who does not meet the MMS is not required to top up his Medisave Account. This is so even if he has balances above the CPF Minimum Sum in his Ordinary and Special Accounts which he can withdraw in cash after age 55. We will progressively require such members to top up their Medisave Accounts (See below for some examples of MMS top-up requirements for CPF members).

Public Enquiry

Members who wish to check their Medisave balance upon reaching age 55 years may log on to the CPF website at http://www.cpf.gov.sg with their SingPass, or call the CPF hotline at 1800-227-1188 (Code 5). For queries on the Medisave Minimum Sum policy, the public can call the MOH hotline at 1800-225-4122.

Please refer to the FAQs on MMS for answers to some commonly asked questions.

Worked Examples

Member A:

He is not able to meet the CPF Minimum Sum of $80,000.

He has a Medisave Account Balance of $0

He does not need to top-up his Medisave as he does not meet the CPF Minimum Sum.

Member B:

He is able to meet the CPF Minimum Sum of $80,000.

He has a Medisave Account Balance of $2,500

He does not need to top-up his Medisave as he has the Required Amount in his Medisave account.

Member C:

He is able to meet the CPF Minimum Sum of $80,000.

He has a Medisave Account Balance of $1,000.

He needs to transfer the excess balances in his Ordinary and Special accounts to his Medisave account to meet the Required Amount of $2,500.

* All examples are for withdrawals made in 2004, and for members whose applicable CPF Minimum Sum is $80,000. Depending on the year in which a member turns 55, he may be subject to a different CPF Minimum Sum.