A government initiative to help older Singaporeans boost their CPF savings amid retirement concerns
A new S$7 billion initiative, the Majulah Package, aims to enhance the retirement security of 1.4 million Singaporeans aged 50 and above, particularly those with lower incomes. Announced by Prime Minister Lee Hsien Loong during his National Day Rally speech on August 20, 2023, this comprehensive package focuses on strengthening the Central Provident Fund (CPF) of older Singaporeans, providing them with significant financial support as they near retirement.
The package, which targets individuals born in 1973 or earlier, consists of three core components. The first is an annual Earn and Save bonus, which provides up to S$1,000 for those who are still working, whether part-time or full-time. The second component is a one-time Retirement Savings Bonus of up to S$1,500 for seniors whose CPF balances fall short of the basic retirement sum. Finally, the package includes a one-time Medisave bonus of up to S$1,000 to help cover healthcare costs.
Prime Minister Lee emphasized the unique position of seniors in their 50s and early 60s, who, despite benefiting from Singapore’s prosperity, have had less time to accumulate retirement savings compared to younger generations. These individuals may also face the added burden of supporting aging parents and young adult children while worrying about their health and future financial security.
For lower- and middle-income seniors, these bonuses will significantly enhance their CPF savings. Additionally, the Majulah Package will also benefit the Pioneer and Merdeka generations, who will receive the bonuses on top of their existing benefits.
In response to these needs, the government will set up a new fund to cover the costs of the package, ensuring that future generations are not burdened. The package also includes enhancements to other existing schemes like Silver Support, Workfare, and the Matched Retirement Savings scheme, with more details to be revealed in 2024.
Overall, the Majulah Package is designed to provide essential financial support for older Singaporeans, particularly those with lower savings, ensuring they can retire with greater peace of mind.
