Matched Retirement Savings Scheme (MRSS): Get Dollar-To-Dollar Matching for Cash Top-Ups
During the Budget Speech in February earlier this year, Deputy Prime Minister Heng Swee Keat announced there would be a Matched Retirement Savings Scheme (MRSS) introduced to help eligible Singaporeans.
If there’s anything that’s cheem to me, it’ll probably be the various schemes we have for our Central Provident Fund (CPF).
I mean, I depend heavily on the Seedly Community for my CPF hacks and answers.
CPF has since released more details on this scheme, and we are here to find out what it’s all about.
What is the Matched Retirement Savings Scheme (MRSS)?
The Matched Retirement Savings Scheme (MRSS) is introduced to help senior Singaporeans who have yet to meet the Basic Retirement Sum to save more for retirement.
It will start from 1 January 2021, and is currently planned to run for five years (till 2025).
Under this scheme, the Government will match every dollar of cash top-ups made to eligible members under the CPF Retirement Sum Topping-Up scheme up to an annual cap of $600.
Who Is Eligible for the Matched Retirement Savings Scheme (MRSS)?
The MRSS is targeted at Singaporeans aged 55 to 70.
About 435,000 Singaporeans will be eligible each year, including self-employed persons, caregivers, and gig workers.
The eligibility criteria for this scheme is as follows:
|CPF Matched Retirement Savings Scheme (MRSS)|
|Age||Age 55 to 70 (both inclusive)|
|Retirement Account (RA)|
|Less than the Prevailing Basic
Retirement Sum (BRS) - The prevailing BRS for 2021 is $93,000
|Average Monthly Income||Not more than S$4,000
|Annual Value of Residence||Not more than $13,000
(covers all HDB flats)
|Property Ownership||Own not more than one property|
* RA savings refer to the cash set aside in the RA (excluding amounts such as interest earned, any government grants received) plus amounts withdrawn such as monthly payouts and lump sum withdrawals.
Who Can Make This Cash Top-Up?
There are no restrictions on who can make this top-up.
The cash top-ups can be made by anyone, including yourself, your loved ones, or even your employer as a staff benefit.
Those who make cash top-ups can enjoy up to $14,000 tax relief under the Retirement Sum Topping-Up Scheme (RSTU) scheme.
- $7,000 per calendar year on top-ups made to themselves or by their employers on their behalf
- Additional $7,000 per calendar year on top-ups to their loved ones
- Employers who make top-ups to their employees will also enjoy full tax deduction on their top-ups.
The matching grant for a given year will be automatically credited into the member’s Retirement Account by the first quarter of the following year.
How Do I Know Whether I Am Eligible for the Matched Retirement Savings Scheme (MRSS)?
CPF Board will automatically assess your eligibility every year based on records.
Singaporeans who qualify for the Matched Retirement Savings Scheme will receive a notification from CPF Board by the end of the first quarter each year.
Eligible members who receive top-ups will automatically qualify for the matching grants.
There is no need to separately apply for the Matched Retirement Savings Scheme.
Building Your Retirement Savings With CPF
The Matched Retirement Savings Scheme is a great addition to those who need to bump up their retirement savings.
For anyone who needs a quick recap, here’s all you need to know about the CPF LIFE scheme and Retirement Sum Scheme!
As always, do remember that any CPF top-ups are irreversible.
If you have any questions regarding CPF, you might be able to get them answered by our Seedly Community!