Since many people are still unclear of the CPF Minimum Sum, the Ministry of Manpower came up a series of infographics to hopefully help people understand the Minimum Sum scheme better.
The first in the series describes why the Minimum Sum goes up over time. Many people who are worried about meeting the Minimum Sum in future, see Will You Have Trouble Meeting the CPF Minimum Sum? Even if you don’t meet the Minimum Sum by the time you are 55, you do not need to top up in cash and you do not need to sell your property to meet the shortfall.
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
The second series basically says that your CPF OA and CPF SA gets combined into the CPF RA. Anything above the minimum sum, you will be able to withdraw in cash. Even if you don’t meet the minimum sum, you will be able to withdraw $5,000.
This infographic describes in a nutshell what pledging property for CPF Minimum Sum means. The term pledge actually caused a lot of confusion especially when I was sharing how people can get exempted from the CPF Minimum Sum. So hopefully this clearly illustrates how it works.