Back in February 2020, during Singapore Budget 2020, it was announced that there was a new scheme that is introduced to help folks with less CPF savings. The name of this initiative is called the Matched Retirement Savings Scheme.
What is the Matched Retirement Savings Scheme?
The Matched Retirement Savings Scheme is a dollar-for-dollar matching initiative by the government for cash top-ups (up to an annual cap of $600) that are made to CPF Retirement Accounts.
The intention is to benefit lower- to middle-income Singaporeans aged 55 to 70 who cannot meet the Basic Retirement Sum.
The scheme will run from 2021 to 2025 for a start, and there is a possibility that it will be extended in future.
Who can benefit from the Matched Retirement Savings Scheme? (Official criteria)
Based on statistics, there are about 435,000 lower- to middle-income Singaporeans aged 55 to 70 who have not been able to set aside the prevailing Basic Retirement Sum (BRS) –
- 2020 – $90,500
- 2021 – $93,000
- 2022 – $96,000
The official criteria for the Matched Retirement Savings Scheme is listed below –
- Age – From 55 to 70 (inclusive)
- Amount in CPF-RA – Less than prevailing Basic Retirement Sum (BRS)
- Average monthly income – Less than or equal to $4,000
- Annual value of residence – Not more than $13,000 (includes ALL HDB flats)
- Property ownership – Must not own more than one property
Who can make the cash top-ups?
Anyone can do it. The person making the cash top-up does not have to be related to the recipient in any way.
How will I benefit if I make the cash top-ups?
Cash top-ups are covered under the existing tax relief for the Retirement Sum Topping-Up Scheme (RSTU) scheme.
Although both my parents have very low CPF-RA balances, they are unfortunately not eligible for this scheme as their age have exceeded the targeted age group criteria.
My parents-in-law, however, can benefit from this scheme.
$600 x 2 pax x 5 years = $6,000 (cash top-up) + $6,000 (government matching)
A simple calculation would indicate “free” money of $6,000 over five years from the government, and this is on-top of tax reliefs that can be enjoyed.
When will the government’s dollar matching be received?
The matching grant for will be automatically credited into the recipient’s CPF Retirement Account (CPF-RA) by the first quarter of the following year.
What do I need to do?
OK – so you (or your parents) are able to benefit from the Matched Retirement Savings Scheme and you’re thinking, what’s the next step?
Eligibility for the Matched Retirement Savings Scheme is automatically assessed by CPF Board every year, and eligible Singaporeans will be notified by CPF Board by the end of the first quarter each year, from 2021 to 2025.
For needy elderly, you would be glad to know that the Silver Support Scheme has also been enhanced to improve the support for those who need it the most.
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Hello! I’m Kevin, Turtle Investor
At the age of 30, I am the personal finance blogger who laid claim to a negative net worth of minus $25,755.
Seven years later in 2019, I hit CPF Full Retirement Sum (FRS) of $176,000 without making a single cent of CPF top-up. More tidbits about myself here if you’re curious. My blueprint for financial independence can help give you a headstart in your own FIRE journey.
I am married to a lovely wife and that means dual income with no kids. In my free time, I chase miles so that we can fly in business class. My hobby is making pocket change off this blog and sharing everything I know with you!
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