Picture : CPF Tampines BuildingSINGAPORE : The rates of the CPF Special/Retirement and Medisave accounts will be modified from next year.
It will be re-pegged to an appropriate long-term bond rate.
Manpower Minister Ng Eng Hen said more details on this will be worked out and announced next month.
He said the new rates will be lower initially than the current rate of 4 percent but it should do better than 4 percent over time.
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CPF Special, Medisave Accounts' Rates To Be Modified Next Year
But as the rates will be pegged to the market, fluctuations can be expected.
Dr Ng was speaking at a news conference to explain the initiatives announced by Prime Minister Lee Hsien Loong at the National Day Rally.
Giving more details on the compulsory annuities, Dr Ng said only part of the minimum sum from the CPF will be set aside for it.
A major portion of the minimum sum will still be for the members' to withdraw when they reach the Draw Down Age. Dr Ng said this is to ensure that members are covered even after the age of 85.
He said the aim is to achieve a subsistence payout first of possibly between $250 and $300 per month.
The minister also let on that the one percent additional bonus interest for the CPF will be put into the Special account and not the Ordinary account.
He said this additional bonus will enhance the CPF's existing risk-free framework. - CNA /ls
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