The Minimum Sum (MS) Scheme aims to help CPF members set aside sufficient savings to support a modest standard of living during retirement.
All CPF members are required to set aside the MS when they turn 55.
Options for the use of the MS for CPF members:
1] leave the MS with the CPF board
2] keep it with a participating bank
3] buy a life annuity from a participating insurance company [Recommended]
For all 3 options members will only receive a monthly payment from age 62 (or any new statutory retirement age).
Why is buying an Annuity recommended?
The Annuity option is the only one which guarantees payment till death, for the other options payment will cease upon exhaustion of the MS.
For Married Couples
Married couples age 55 or above may set aside a combined MS of 1.5 times provided they nominate each other as the beneficiary for the balance of their MS. (Note: Once nomination is made it CANNOT be revoked)
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