In a recently concluded Salary.sg poll, 31% of the respondents indicated that their medisave balance reached the prevailing medisave contribution ceiling before they were 33 years old. Are you one of them?
Once your medisave balance hits the MCC, the excess will be transferred to your Special Account.
How soon you hit the MCC is an indirect reflection of your income and bonuses, though some may argue that it’s a simplistic indicator because the monthly income subject to CPF is capped at $4,500 and the total annual income subject to CPF is similarly limited to $76,500.
By the way, the MCC has just been raised to $39,500. It was only $32,500 4 years ago.
Our poll results also show: Among the 7 age groups that hit the MCC, the majority (25%) are in the 33 to 36-year-old group.
This means a total of 56% hit the MCC before 37 years old. Are you one of them?