A government initiative to support Singapore’s older citizens with targeted CPF bonuses
A new initiative, the Majulah Package, will provide a significant S$7 billion boost to support 1.4 million Singaporeans aged 50 and above, particularly those with lower incomes. Announced by Prime Minister Lee Hsien Loong during the National Day Rally on August 20, 2023, the package offers a range of bonuses designed to help enhance their Central Provident Fund (CPF) savings.
Targeted at individuals born in 1973 or earlier, the package consists of three main components. The first is an annual Earn and Save bonus for working seniors, which can amount to up to S$1,000, credited directly into their CPF accounts. The second component provides a one-off Retirement Savings Bonus of up to S$1,500 for seniors whose CPF balances fall short of the basic retirement sum, and a third offers a one-time Medisave bonus of up to S$1,000 to assist with healthcare costs.
These measures are specifically designed for lower- and middle-income seniors, offering them significant support in the face of increasing life expectancy and the financial strain of caring for both aging parents and their own children. The government aims to address the concerns many of these “young seniors” have about their retirement security, acknowledging the unique challenges they face compared to both older and younger generations.
In addition to the new bonuses, the package also extends benefits to seniors from the Pioneer and Merdeka generations, further enhancing their CPF savings without disrupting existing benefits. The government plans to fund the package through a new fund, drawing from this current term of government, ensuring that future generations are not burdened.
Overall, the Majulah Package is part of broader efforts to improve retirement security and financial stability for older Singaporeans, especially those with lower savings, by addressing the growing needs of the nation’s aging population.
