From 1 January 2013, the Medisave Required Amount (MRA) will be raised from the current $32,000 to $38,500.
Since 1 January 2004, CPF members who turn 55 and are able to meet the CPF Minimum Sum are required to set aside the MRA in their Medisave Account when they make a CPF withdrawal.
If such members have less than the MRA in their Medisave Accounts, their Ordinary and/or Special Account balances in excess of the Minimum Sum will be used to top up the MRA.
The requirement for members to set aside the MRA in their Medisave Account is to enable them to have enough savings to meet their healthcare needs during old age.
CPF members will continue to enjoy a risk-free interest rate of 4% on their Special and Medisave Accounts (SMA) from 1 January 2013 to 31 March 2013, and on their Retirement Account (RA) from 1 January 2013 to 31 December 2013.
This is in line with the Government’s announcement made in September 2012 to maintain the 4% p.a. floor rate for interest earned on all SMA monies and RA monies until 31 December 2013.