The Central Provident Fund (CPF) Board has announced that the fund's members turning fifty-five would have to set aside a bigger sum in their Medisave Accounts as the Medisave Required Amount (MRA) would go up from January 1.

The MRA will jump from current S$27,500 to S$32,000 from the start of next year. The MRA refers to the amount that a member must set aside in his/her Medisave Account, after the CPF Minimum Sum requirement is met.

If a member has an MRA deficit, the balances in his/her Ordinary or Special Account exceeding the minimum sum is used to make a top-up to the Medisave Account.

Along with raising the MRA, the CPF Board also announced that members would keep on enjoying a risk-free interest rate of 4 per cent on their Special & Medisave Accounts between January 1 and March 31.

The interest rate for the Retirement Account, from January 1 to December 31 has also been set at 4 per cent.The MRA aims to allow members to have enough savings to meet their old age heath care requirements without much difficulty.