Wednesday, 20 May 2015

New changes to the CPF

Discover how it affects you

This year's Jubilee budget saw a significant focus on the middle class, or rather, the 'sandwiched' class. It refers to the lower-middle class citizens who on average earn between the income bracket of $3,500 to $5,000 a month. Although we cannot this group of citizens poor, they are not able to achieve their aspirations as people with a higher income. In Singapore, the increasing phenomenon of middle class workers not finding housing affordable is an example of a 'squeeze' on them.

So why a focus on the middle class? Because the majority of the population falls into this category. While we do not need to eat from our home-made lunch-boxes everyday, there are defnitely some areas where we feel constrained or stuck in life.

The most immediate policies introduced at this year's budget that targets to help the middle income group include the following:
  • increase the CPF ceiling from $5,000 to $6,000
  • a 50 per cent personal income tax rebate, subject to a cap of S$1,000
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