Singapore
New retirement savings package announced by PM Lee for older Singaporeans
Prime Minister Lee Hsien Loong announces the Majulah Package, aiming to bolster retirement savings for Singaporeans aged 50 and above. Targeting 1.4 million citizens, this S$7 billion initiative will offer yearly bonuses and one-time top-ups, focusing on those with lower incomes. Eligibility details to be released in 2024.
SINGAPORE: Prime Minister Lee Hsien Loong unveiled the Majulah Package on Sunday during his National Day Rally (20 Aug), a new initiative aimed at bolstering retirement savings for lower and middle income Singaporeans aged 50 and above.
The package includes:
- Yearly CPF Bonus: Those who remain employed will receive an annual CPF bonus of up to S$1,000.
- One-time CPF Bonus: A sum of S$1,500 will be granted to those who have yet to meet the CPF Basic Retirement Sum (BRS).
- One-time MediSave Bonus: Individuals who are 50 and above this year will benefit from a $1,000 bonus.
This initiative is primarily designed for Singaporeans born in 1973 or earlier. With an estimated cost of S$7 billion to the government, it is expected to especially benefit those with lower incomes and fewer assets.
Approximately 1.4 million older Singaporeans, translating to over eight in every ten Singapore citizens aged 50 and above in 2023, are projected to gain from this package.
A means test that factors in income, residential annual value, number of properties owned, and CPF savings will be applied. Specific eligibility details are set to be disclosed in 2024.
This package is also tailored to support the Pioneer and Merdeka Generations, resonating with the broader objective of urging older Singaporeans to extend their working years.
Addressing the segment termed as “young seniors”, which includes those born between 1950 and 1959 and in 1949 or earlier, PM Lee noted that while this group generally fared better than the Pioneer and Merdeka Generations due to Singapore’s growth, they earned less than the younger workforce. This demographic also has less time to capitalize on the CPF system enhancements and accumulate adequate retirement savings.
The Majulah Package, according to PM Lee, aims to ease concerns surrounding retirement, especially as this age group juggles the dual responsibilities of looking after younger and older family members.
The package’s primary component, the Earn and Save Bonus, offers a yearly CPF bonus ranging between $400 and $1,000 to lower- and middle-income workers, contingent on their continued employment. This bonus, in addition to the regular contributions from both the employer and employee, will be credited to the recipient’s CPF account.
Underlining the importance of continued employment for “young seniors,” PM Lee cited an example of a 55-year-old with lower income. If this individual chooses to retire at 65, the Earn and Save Bonus would result in an additional CPF savings of S$12,000 over a decade, inclusive of interest.
To further fortify retirement preparations, the Retirement Savings Bonus (RSB) will be introduced for those who have not reached the CPF BRS, offering a one-time bonus of between S$1,000 and S$1,500.
The RSB also extends its reach to non-working individuals, including housewives with low CPF balances.
Amidst rising healthcare expenses, the MediSave Bonus, which involves a one-time top-up ranging from S$500 to S$1,000, was introduced as part of the Majulah Package to provide relief for medical bills and insurance premiums.
PM Lee also mentioned that improvements to existing schemes, like Silver Support, Workfare, and the Matched Retirement Savings Scheme, are in the pipeline. Comprehensive details of these enhancements are anticipated in 2024.
Ensuring a sustainable financial approach, a new fund will be established by the Ministry of Finance, using resources from the current term of government, to cater to the Majulah Package’s lifetime costs. PM Lee emphasized that this strategy is designed to prevent imposing financial strains on upcoming generations.
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The earth shattering news will be CPIB might find discrepancies in Mr iswaran payslips.Will the CPIB stand up and show impartiality?
Must try to spread Ridout clause 3.1&3.2 to as many New citizens as possible because they may only watch mediacorp and read *SIN*Ming.As for civil servant,we can just hope those currently earning less than $4k as they are just as at ends need as majority .In the meantime,let’s Hope for earth shattering news from the whistle blower.In the meantime STAY away from Chong pang market and stay healthy.
Using his own posb savings account to pay for this or its using our tax monies? Get votes?
What happened to singaporeans are rich? What happened to cpf for retirement? FAILED policies?
Is goodies here and there – Budget, ND – packages here and there Merdeka, PIONEER, Not So Pioneer, NOT YET BORN, BECOMING the Mainstream, Fundermental Backbone of SG econ GROWTH track and STRATEGY which is WHAT Apparently Multi Millionaire Politicians, the world’s highest paid can come out with, to FORMULATE a route for SG into 1st World?
Like that Dr Albert Winsemius MUST BE WEEPING very very GRAVELY somewhere.
Piece by Piece. Meal by Meal.
Where’s the strategic planting, focus, on long term harvest? Where’s the fisherman’s focus on fishing, the farmer’s land use, the industrialists manufacturing missions TO PUT UP Sheegapore as a Number, REALLY SMART Nation?
Yet, year after year, ND after ND – can someone see, and name, any SOLID, CONCRETE, MEASURABLE figures of aims, objectives, targets, say in 5 years, 10 years?
It’s NOT speeches after speeches, Parliament DEBATES OR OWNSEL CHECK – these are WORDS AND WORDS more words – it is THE CONDUCT, the ACTIONS, the DRIVE.
If there is a BEST STORY TELLER competition – the Champions, and top 10 spots can be found, amongst in Sheegapore’s BEST PAID politicians.
Which govt. In the world will bring in foreigners who cannot afford their own housing, give them citizenships and then grants to buy Public Housing? The One and Only, ladies and gentlemen, The People’s Action Party which claims to have the best brains in the world. It is more like shit in their brains.
That’s all he and his team can provide. Nothing special, mostly beautifully-enhanced paper work. I clapped for you. Majulah package to help top up young seniors’ cpf to prepare for their old age, while presently many of them are already struggling in daily lives in bread and butter issue. For cpf money, we know the amount is there but we cannot touch to feel and use it in daily life. He comes out of the Plus framework, eliminating the difference between mature and non-mature estates, thinking it can make wonder to make public housings affordable. On paper, it looks nice… Read more »
Thank you PM Lee, I will always vote for PAP.
It’s funny. Too little to be enough. But will win him some votes as usual.
The “Majulah” package was presciently FIRST coined by someone on TOC a few years ago when the Merdeka package was announced. What new names are they going to come up with in the future? Just simply have a SENIOR package that is automatically eligible for anyone reaching a particular milestone in age.
Now, NTUC will have to PAY more money to update their POS registers to cater for yet another age group …
Please dump the means testing and just give $500/- per month to those 65years and above. Transportation and medical benefits must be free to this group.Whatever is given to us is taken back when you increase transportation and medical costs. This is eye wash and bullshit. Who actually in the PAP comes up with such proposals? The person does not know how to think. Houses can be mortgaged. One spouse might have died and the other surviving spouse may have only one income. People may have lost their jobs and you are still talking about means testing? You have caused… Read more »
LHL looked spent, drained and listless. He must step down sooner rather than later. Nothing more to offer.
A slew of new HDB revamps to justify fairness in their high prices to make it sound attractive enough to make people instantly forget about the price decay.
He tells you the new HDB good news but kept mump on ZERO value.
Sillyporeans have short memory.
Quite a disappointment really. The top ups are to the CPF. While he acknowledged Singaporeans’ worry about inflation and high cost of living; there was no immediate cash relief announced. I would have thought he would announce some cash relief in Oct 2023. Let’s see how the changes to the Silver Support, Workfare and Matching Retirement Scheme will improve our welfare. But why this can be announced only in 2024 is puzzling. Maybe he is waiting to see the outcome of the presidential election to gauge the temperature of the people before deciding the final adjustments. And, at one point… Read more »
A means test that factors in income, residential annual value, number of properties owned, and CPF savings will be applied. Specific eligibility details are set to be disclosed in 2024.
Cheers to the Mallulah Package
Addressing the issue of succession, but as not unexpectedly pinky never answers the question of when.
Just merry go around. No one is wiser!
So lan lan wong may have to tan gu gu loh.
not chicken wings but chicken bones, something you cannot enjoy…
but will have to return the whole chicken sooner or later.
As expected, a lot of chicken wings is flying around. It means GE is near.