The MS was set at $80,000 in 2003 and is being raised gradually until it reaches $120,000 (in 2003 dollars) in 2015. The MS will be adjusted yearly for inflation.
| 55th birthday on or after | MS (in 2003 dollars) | MS (after adjustment for inflation) |
| 1 July 2003 | $80,000 | $80,000 |
| 1 July 2004 | $84,000 | $84,500 |
| 1 July 2005 | $88,000 | $90,000 |
| 1 July 2006 | $92,000 | $94,600 |
| 1 July 2007 | $96,000 | $99,600 |
| 1 July 2008 | $100,000 | $106,000 |
| 1 July 2009 | $104,000 | $117,000 |
| 1 July 2010 | $108,000 | $123,000 |
| 1 July 2011 | $112,000 | $131,000 |
| 1 July 2012 | $113,000 | $139,000 |
| 1 July 2013 | $115,000 | $148,000 |
| 1 July 2014 | To be announced | } To be |
| 1 July 2015 | $120,000 | } announced |
Setting aside the MS when you reach 55 years old ensures that you have a regular income from your drawdown age (DDA) to support a basic standard of living.
| Year of Birth | Drawdown age |
| 1943 and before | 60 |
| 1944 to 1949 | 62 |
| 1950 and 1951 | 63 |
| 1952 and 1953 | 64 |
| 1954 and after | 65 |
When you reach 55 years old, your Special Account (SA) savings, followed by your Ordinary Account (OA) savings will be transferred to your Retirement Account (RA) to meet your MS.
If the savings in your SA and OA are not enough to make up the MS, your property which was purchased using CPF savings will be automatically pledged, for up to half of your MS, to make up the difference. The pledge amount will be the amount of CPF used for the property or the Minimum Sum shortfall, whichever is lower.
If you sell the property, you will need to refund the CPF that was used to buy it and the accrued interest. The amount refunded will be used to top up to the MS that applies to you, and the current Medisave Required Amount (MRA) of $38,500. The balance of the housing refunds will then be paid to you automatically. Also, if you had withdrawn your RA savings by pledging your property, you need to refund the amount withdrawn from your RA upon the property sale to redeem the pledge.
If there is still a MS shortfall in your RA after pledging your property, a portion of the new inflows like working contributions, voluntary contributions, government top-ups and other refunds received after 55 years old will be used to make up the shortfall upon your subsequent CPF withdrawals.
After setting aside your MS and current MRA, you can choose to withdraw the remaining cash balances in your OA and SA, or continue to keep your savings in CPF to earn interest.
For full info: CPF Minimum Sum
Source: CPF