The government will introduce a Matched Retirement Savings Scheme (MRSS) to assist those with less CPF savings to save more for their needs.
This scheme is available for Singaporeans aged 55 to 70 who have not been able to set aside the prevailing Basic Retirement Sum (BRS), announced Deputy Prime Minister and Minister for Finance Heng Swee Keat during his Budget 2020 Statement on Feb. 18.
The government will match every dollar of cash top-up into the CPF Retirement Accounts, up to S$600 annually.
This is expected to benefit 435,000 Singaporeans, and provide support for seniors of fewer means in retirement.
Basic Retirement Sums for 2021 and 2022
Heng also announced the Basic Retirement Sums for CPF Members reaching 55 years of age in 2021 and 2022.
If you turn 55 in 2021, the BRS will be set at S$93,000.
If you turn 55 in 2022, the BRS will be set at S$96,000.
70 per cent of active CPF members in the 2021 and 2022 cohorts are expected to be able to set aside their BRS, which is an increase from 40 per cent ten years ago.
No change to CPF withdrawal rules
CPF withdrawal rules remain unchanged.
Members aged 55 and above can withdraw up to S$5,000 with no conditions from their Ordinary Account or Special Account savings, even if their Retirement Account savings don't meet the BRS.
For those turning 65 in 2023 and onwards, they can withdraw up to 20 per cent of their Retirement Account savings in a lump sum, as at age 65. They can do this anytime from age 65 onwards.
In addition, if members aged 55 and above have fulfilled their Full Retirement Sum, they can withdraw any additional money above that amount.
They can also withdraw any Retirement Account savings above the BRS, as long as they have a property that can last them till age 95.
Also, members who have less than the BRS are not required to top up their CPF accounts with cash or sell off their properties.
Top image from Nguyen Thu Hoai via Unsplash.