To Singaporeans, our Central Provident Fund (CPF) savings are essential for ensuring a comfortable retirement.
However, some Singaporeans may have trouble making the Basic Retirement Sum to get a payout, especially those with lower income.
To make this easier, the Government will match any CPF cash top-ups to Retirement Accounts dollar-for-dollar, for the next 5 years.
What’s more, anybody is allowed to top up a member’s account to get the grant — the member himself, a loved one, employer or even a generous member of the public.
In a news release on Wednesday (6 Jan), the CPF Board noted that about half of the CPF members who’re aged 55 haven’t hit their Basic Retirement Sum yet.
Thus, to help them enjoy higher monthly payouts during retirement, the Matched Retirement Savings Scheme (MRSS) has been introduced.
From 2021 to 2025, every dollar topped up to a Retirement Account will be matched by the Government, subject to a cap of $600 every year.
That means members can get grants of up to $3,000 over these 5 years.
The MRSS is only valid for members who:
According to the CPF Board, 440,000 members are currently eligible for the grant, or 53% of those aged from 55-70.
They will be notified by the board this month, but they can also check whether they’re eligible at the CPF website.
The CPF Board acknowledged that some members wouldn’t be able to top up their own accounts.
Thus, it encouraged people to top up their loved ones’ accounts for them.
Grassroots leaders, in collaboration with the board, will talk to their residents about the MRSS.
Members of the public will also be encouraged to help vulnerable elderly people build up their retirement savings by topping up their accounts.
One person who will be doing so is Mdm Katherine Ou.
She told the CPF Board that her parents have little CPF savings.
This is especially so for her mother, 61-year-old Mdm Susan Lye, who’s a housewife.
Thus, she’s been “looking forward” to the MRSS so she can top up her parents’ CPF accounts.
Together with the matching grant from the Government, they can be better prepared for retirement, Mdm Ou added.
In this way, Mdm Lye will get more monthly payouts when she turns 65.
CPF Board chief executive Augustin Lee pointed out that CPF offers the best savings interest rate in town.
Thus, even regular top-ups of small amounts will help boost the retirement needs of members.
So to get the grants, the top-ups don’t need to be in a lump sum. Even $50 a month can fulfil a top-up of $600 in 1 year to get the maximum matching grant.
The top-ups can be made via the CPF website or myCPF mobile app.
As Singapore’s economy suffers from the Covid-19 pandemic, it seems that Singaporeans are seeing their CPF as a safe harbour to park their money in.
While older Singaporeans are being encouraged to strive to meet their basic sum with top-ups, more younger Singaporeans below 35 are also topping up their CPF voluntarily.
After all, Singaporeans can’t resist a bargain, and the Government’s matching grant has just made it much more lucrative to do so.
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Featured images adapted from MS News and Facebook.
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