Saving more for retirement
The Government’s Matched Retirement Savings Scheme will be introduced next year.
The Government will introduce the Matched Retirement Savings Scheme (MRSS) in 2021 to help Singaporeans aged 55 to 70 who have yet to meet the Basic Retirement Sum save more for retirement. About 435,000 Singaporeans will be eligible each year, including self-employed persons and caregivers.
Those who earn less than S$4,000 a month on average and have not met the Basic Retirement Sum (BRS) are eligible. According to the Ministry of Manpower (MOM), their annual value of residence should not exceed S$13,000, which covers all Housing Board flats, and they must not own more than one property.
The MRSS will run for five years for a start. Under MRSS, the Government will match every dollar of cash top-ups made to eligible members under the CPF Retirement Sum Topping-Up scheme (RSTU) scheme up to an annual cap of S$600. CPF members can receive lifelong monthly payouts that can cover basic living expenses once they turn 65, after setting aside a BRS at 55. Those who make cash top-ups can get up to S$14,000 in tax relief under the Retirement Sum Topping-Up Scheme and there are no restrictions on who can contribute. Upon a cash top-up being made, 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.
MOM said that eligibility for the scheme is automatically assessed annually. Those who qualify will be notified by the CPF Board by the first quarter of each year, starting from next year, and there is no need to separately apply for the scheme.