Budget 2020: [CPF] Government Will Match Dollar for Dollar For Singaporeans to Reach BRS; More qualify for Silver Support Payouts
435,000 Singaporeans who are unable to meet the CPF’s Basic Retirement Sum will get dollar-to-dollar matching to their CPF contribution of up to $600.
Deputy Prime Minister Heng Swee Keat announced in today’s budget speech that a Matched Retirement Savings Scheme will be introduced from 2021 to 2025, to help this group of Singaporeans.
Enhanced Silver Support Scheme To Include More Elderly
This is in tangent with an Enhanced Silver Support Scheme, where Minister Heng promises an increase in quarterly payout for lower-income retirees, from $750 to $900.
The enhanced Silver Support Scheme currently provides cash payouts to only 20% of Singaporeans. This is being relooked, as the eligibility criteria will be widened to include more seniors, with a new payout tier.
Senior citizens who receive a monthly payout above $1,300/month but below $1,800/month will be considered for the new scheme.
A new payout tier will also mean that seniors whose household incomes per person are above S$1,300 but not exceeding S$1,800 will be able to receive a payout. While it will be smaller than the payout in other tiers, this is the first time they will receive such a payout from the scheme.
Eligible seniors will be notified by the CPF Board and start receiving payouts under the enhanced scheme from December this year.
Overall, this scheme is expected to benefit 100,000 more senior citizens
For the rest of Singaporeans, the Basic Retirement Sum, which is currently at $90,500, will be increased to 93,000 and 96,000 respectively for those turning 55 in 2021 and 2022 respectively.
No Change In CPF Withdrawal Age
There are no other changes to the CPF withdrawal age.
Members aged 55 and above can withdraw up to S$5,000 with no conditions from their Ordinary Account of Special Account savings, even if their Retirement Account savings don’t meet the BRS.
Members are not required to top up their CPF accounts in cash or sell their property if they have less their BRS.