CPF Changes

Contribution Rates for Special and Medisave Accounts

1.64 Thirdly, we will phase in higher contributions to the Special and Medisave Accounts for all Singaporeans. This is to strengthen savings for old age and healthcare. These changes will be phased in gradually over three years, starting from January 2004.

CPF Rates	Current	From 1 Jan 2004	From 1 Jan 2005	From 1 Jan 2006
For workers aged 35 years and below
- Special Account	4%	5%	5%	5%
- Medisave Account	6%	6%	7%	7%
For workers aged above 35-45 years
- Special Account	6%	7%	7%	7%
- Medisave Account	7%	7%	8%	8%
For workers aged above 45-50 years
- Special Account	6%	7%	8%	9%
- Medisave Account	8%	8%	8%	9%
For workers aged above 50-55 years
- Special Account	6%	7%	8%	9%
- Medisave Account	8%	8%	8%	9%

1.65 CPF members need not worry that these changes will leave them with less savings in their CPF Ordinary Accounts to service their mortgage payments. We are implementing the changes over several years, during which we expect wages to increase. In addition, the Government will give those who purchased their properties before 1 January 2004 continued access to their Special Accounts to top up their CPF mortgage payments, to the extent that these payments are affected by the changes.