Tuesday, March 16, 2010

Increase of CPF-SA lock-in in Budget 2010

Somehow this year there seems to be many changes during the Budget 2010 discussions. There are quite a few CPF changes but one thing of note (to me at least) is that from 1 July 2010, the first $40,000 of members’ Special Account balances will no longer be allowed to be used for investments. Previously, it used to be the first $20,000. Reason given was that with the higher risk-free interest rate on the Special Account, it is better to be more conservative than to subject these savings to the uncertainty of CPFIS returns.

There are also changes to the following CPF rules:
  • Facilitating Automatic Inclusion in CPF LIFE
  • Allowing Payout Adjustments for Minimum Sum Scheme
  • Refining CPF Nomination Rules
  • Special Needs Savings Scheme
  • Enhancements to Workfare Income Supplement Scheme (WIS)
  • Refinement to the Public Assistance Scheme 

You can read more about it here.

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