The CPF Minimum Sum will be raised to S$155,000, up from S$148,000, from 1 July.
This will apply to CPF members who turn 55 between 1 July 2014 and 30 June 2015, the Central Provident Board (CPF) and the Manpower Ministry said in a joint statement.
Under the CPF LIFE Standard Plan, setting aside S$155,000 at age 55 provides a lifelong payout of about S$1,200 per month, the statement added.
The Medisave Minimum Sum will be raised to S$43,500 from S$40,500 from 1 July.
A member will need to have this amount in his Medisave Account and also meet the CPF Minimum Sum before excess funds can be withdrawn.
The Medisave Contribution Ceiling will be increased correspondingly to S$48,500 from S$45,500.
This is the maximum balance a member can have in his Medisave Account.