CPF Medisave Minimum Sum (MMS) scheme was abolished since 1 Jan 2016. It used to be the amount which you need to retain in your Medisave Account (MA) for your healthcare needs before any excess Medisave savings can be withdrawn on or after 55.
In the past, if you have met the CPF Minimum Sum requirement (now called Retirement Sum scheme) but do not meet Medisave Minimum Sum, you still need to top up your Medisave Account before you can make any withdrawal when you turn age 55.
The last change of Medisave Minimum Sum was $43,500 since 1 July 2014, it has since been replaced by a new scheme called Basic Healthcare Sum scheme.
Basic Healthcare Sum
From 1 January 2016, there will only be one Medisave-related amount you need to be concerned about, that is the Basic Healthcare Sum. This amount is $49,800 in 2016, and will increase each year in response to Medisave use.
For those of you who do not know, there is also a Medisave Contribution Ceiling (MCC), which is $48,500 as at 2015. Any further contributions made to Medisave after your MCC has been reached will automatically be diverted to your Special Account.
How much Medisave can you withdraw before 2016?
The table below sums up how the previous Medisave Minimum Sum (MMS) scheme determines the amount you can withdraw from your Medisave Account at age 55 and above.
|Medisave Account (MA) Balance||Amount which can be withdrawn from MA|
Less than or equal $43,500
More than $43,500
How much Medisave can you withdraw from 2016
From 2016 onwards, there is no more MMS. Essentially, what this means is that CPF members can choose to withdraw monies from their Ordinary and Special Accounts at the age of 55 after having set aside for their Retirement Account (RA).
What does this change mean to you
The scrapping of the Medisave Minimum Sum shows our government’s determination to revamp both the CPF and health care system.
In my opinion, it is good to separate retirement needs (Ordinary and Special Accounts) and healthcare needs (Basic Healthcare Sum). But with all these new changes such as Medishield Life, it comes with confusion.
But not to worry, simply leave your questions below and I will answer all of them…