Budget 2022: Basic Retirement Sum to be raised to help retiring seniors

TO HELP cope with rising living standards, the Basic Retirement Sum (BRS) will be raised to provide seniors with higher monthly Central Provident Fund (CPF) payouts in their retirement years.

The BRS will be raised by 3.5 per cent for the next 5 cohorts that turn 55 between 2023 and 2027, said Finance Minister Lawrence Wong on Friday (Feb 18) during his Budget 2022 statement.

Those who do set aside their BRS when they turn 55 in 2027 will receive payouts of close to S$1,000 per month when they turn 65. These payouts will continue for the rest of their lives.

There is no need for members to top up their CPF if they are unable to set aside their BRS, said Wong.

Separately, Wong also announced that the planned second increase in CPF contribution rates for senior workers will go ahead in 2023.

This means that workers aged between 55 and 70 will see their CPF contribution rates increase a total of 3 to 4 percentage points over the 2 years.

The first increase was implemented this year after a 1-year deferment, with employers given a 1-year S$80 million offset package equivalent to half of the increase in employer CPF contributions.

Wong said employers will receive a "similar offset" for the next step of the increase in 2023.

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