SG Budget 2024: S$8.2B Majulah Package supports 1.6M senior Singaporeans

SINGAPORE: Approximately 1.6 million Singaporeans are slated to receive retirement support through the Majulah Package, which includes means-tested bonuses for eligible seniors and a Medisave Bonus for all individuals born in 1973 or earlier.

Deputy Prime Minister and Finance Minister Lawrence Wong, in his Budget speech on Friday (16 February), revealed that S$7.5 billion will be allocated to the new Majulah Package Fund to cover the estimated total lifetime cost of S$8.2 billion.

The Majulah Package was announced by Prime Minister Lee Hsien Loong, last year at the 58th National Day Rally.

While primarily designed for “young seniors,” the package extends its benefits to Pioneer and Merdeka Generation seniors, as emphasized by DPM Wong.

The first component, the Earn and Save Bonus (ESB), targets lower- and middle-income workers, offering them a yearly CPF bonus ranging from S$400 to S$1,000.

Recipients must maintain active employment, either full-time or part-time, with an average monthly income between S$500 and S$6,000.

The bonus will be credited directly into their CPF accounts, supplementing regular contributions from employers and employees.

The first instalment of the ESB is scheduled for disbursement in March 2025.

Additionally, the Majulah Package includes a Retirement Savings Bonus (RSB) for seniors whose CPF balances have yet to reach the CPF Basic Retirement Sum, currently set at S$99,400 as of 31 December 2022.

Eligible individuals can expect a one-time bonus ranging from S$1,000 to S$1,500, credited into their CPF accounts in December 2024.

Both bonuses are contingent on certain criteria, including residency in a property with an annual value not exceeding S$25,000 and ownership of no more than one property.

The third component, a one-time MediSave Bonus, will be disbursed to all eligible seniors based on their age.

Those born in earlier years will receive S$1,500, while others will receive S$750, credited into their CPF MediSave Accounts in December 2024.

Mr Wong said, “Young seniors with less means will be given the higher tier of S$1,500, and all other seniors will receive S$750.”

This bonus is tiered based on the recipient’s year of birth, the annual value of their residence and whether they own more than one property.

Mr Wong emphasized the government’s commitment to supporting older Singaporeans, particularly those with limited means.

The Majulah Package represents a strategic effort to address retirement challenges and ensure financial security for seniors across the nation.