440,000 CPF members eligible for new scheme with government matching retirement account top-ups
SINGAPORE — A total of 440,000 Central Provident Fund (CPF) members are eligible this year for a new savings scheme in which the Singapore government will match their cash top-ups to their retirement accounts.
CPF said in a media release on Wednesday (6 January) that the new scheme, called Matched Retirement Savings Scheme (MRSS), is to help older CPF members attain the Basic Retirement Sum.
Under the scheme, each dollar of cash top-up into the members’ retirement accounts will be matched by the government for the next five years, capped at $600 per year. The top-ups and matching grants will allow these eligible CPF members to enjoy higher monthly payouts during retirement.
To be eligible for the MRSS, CPF members must be between 55 and 70 years old, with less than the prevailing Basic Retirement Sum in their retirement accounts. The Basic Retirement Sum this year is $93,000.
CPF said in its media release that the 440,000 eligible members make up 53 per cent of CPF members aged between 55 and 70.
These eligible members will be notified this month. Members can also check their eligibility online via the CPF website with immediate effect.
Encouraging top-ups to elderly members’ retirement accounts
The top-ups can be performed by anyone, including loved ones, employers or even a member of the community. They can be made electronically via the CPF website or myCPF mobile app.
The top-ups need not be in lump sum – small and regular top-ups throughout the year using GIRO can likewise receive up to $600 matching grant.
CPF encourages the elderly members’ loved ones, such as their children, to make top-ups to their parents. It is also partnering grassroots leaders to raise awareness of MRSS among their residents, or encourage the wider community to build up the retirement savings of vulnerable elderly through the MRSS.
“About half of CPF members turning 55 today have yet to attain the Basic Retirement Sum. This matching grant by the Government will encourage them to save more with CPF,” said CPF Board chief executive Augustin Lee.
“There’s no better savings interest rate than what CPF pays now. We hope their loved ones and the wider community can also pitch in. Even small amounts saved consistently can go a long way in securing CPF members’ retirement needs.”
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