Medisave Contribution Ceiling - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Medisave Contribution Ceiling

Reply
 
Thread Tools
  #1 (permalink)  
Old 13-06-2006, 03:14 AM
Salary.sg
Guest
 
Posts: n/a
Default Medisave Contribution Ceiling

CPF Board sent out a news release today on CPF changes announced by the government last year.

First, the Medisave Contribution Ceiling (MCC) will be raised from $32,500 to $33,000 with effect from 1 July 2006. This means that your Medisave account can hold a maximum of $33,000. Any excess will be channelled out (see next point).

Second, the excess Medisave contribution (as mentioned) will be channelled to your Special Account instead of the Ordinary Account previously.

Third, you can't use CPF to pay for a second property unless you have set aside the Minimum Sum.

What all the above is trying to tell us is that you will have less money in your Ordinary Account, but it's ok, since you can't use it to fund your "investment property" unless you have set aside the Minimum Sum for your retirement.

Coming back to the Medisave Contribution Ceiling (MCC), do you know that a fair number of people hit this ceiling around their mid-30s? In fact, you can ask your colleagues, maybe casually over lunch, if they have hit the MCC and when. And you'll roughly know where they stand in terms of income.

Here's some calculations: to hit $33,000 at a contribution rate of 6% (medisave rate for those aged below 35), you'll need to make a total of $550,000 in wages. Spread over 10 years, that's only $55,000 per annum on average.

If you're an above average wage earner, chances are you'll hit MCC before hitting middle age, whatever you define it to be.

http://www.salary.sg/2006/medisave-c...ution-ceiling/

Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Employer CPF contribution now at 14.5% Salary.sg Investments and Net Worth 0 05-07-2007 12:59 PM
Medisave Contribution Ceiling now $33,500 Salary.sg Investments and Net Worth 0 16-06-2007 11:43 PM

» 30 Recent Threads
Lawyer Salary ( 1 2 3... Last Page)
18,043 Replies, 7,129,867 Views
Career as Teacher ( 1 2 3... Last Page)
6,217 Replies, 3,937,894 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
966 Replies, 658,486 Views
ST Electronics ( 1 2 3... Last Page)
3,142 Replies, 956,184 Views
For those with 2-5 YOE, what is... ( 1 2 3... Last Page)
1,044 Replies, 253,059 Views
Shopee fresh grad pay ( 1 2 3... Last Page)
730 Replies, 205,246 Views
DBS tech seed programme ( 1 2 3... Last Page)
2,495 Replies, 725,244 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
9,181 Replies, 2,887,153 Views
IMDA (under MCI) ( 1 2 3... Last Page)
354 Replies, 181,077 Views
Roles in accenture singapore ( 1 2 3... Last Page)
5,398 Replies, 1,168,864 Views
20% salary bump? ( 1 2)
19 Replies, 5,063 Views
Engineer Pay ( 1 2 3... Last Page)
524 Replies, 285,081 Views
RM Salaries and Commissions
0 Replies, 66 Views
What are some good non-fang tech... ( 1 2 3... Last Page)
71 Replies, 18,615 Views
Be a commodities trader ( 1 2 3... Last Page)
223 Replies, 216,273 Views
jobs at Tech companies
4 Replies, 3,217 Views
Bnp paribas graduate ( 1 2 3... Last Page)
194 Replies, 113,972 Views
Credit Suisse ( 1 2)
14 Replies, 5,669 Views
Micron starting pay ( 1 2 3... Last Page)
562 Replies, 215,225 Views
Hospital (Private or Public)... ( 1 2 3... Last Page)
341 Replies, 110,482 Views
CSA (Cyber Security Agency) ( 1 2 3... Last Page)
560 Replies, 233,034 Views
How much do you earn and save? ( 1 2 3... Last Page)
385 Replies, 181,783 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
4,475 Replies, 2,532,637 Views
GovTech Tech Associate Program... ( 1 2 3... Last Page)
351 Replies, 143,371 Views
Compare civil service salary ( 1 2 3... Last Page)
14,844 Replies, 9,610,368 Views
Relationship manager / Personal... ( 1 2 3... Last Page)
49 Replies, 51,133 Views
Enterprise Singapore hiriing... ( 1 2 3... Last Page)
146 Replies, 143,312 Views
Job Application with MOE... ( 1 2 3... Last Page)
393 Replies, 432,627 Views
High Finance Thread ( 1 2 3... Last Page)
1,389 Replies, 331,276 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
4,156 Replies, 3,149,671 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 08:07 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2