Budget 2024: S$8.2 billion Majulah Package to benefit 1.6 million Singaporeans
Tan Nai Lun
AROUND 1.6 million Singaporeans will get a boost for their retirement through the Majulah Package, with means-tested bonuses for eligible seniors, as well as a Medisave Bonus for all seniors born in 1973 or earlier.
The package is expected to have a total lifetime cost of S$8.2 billion. To cover this, S$7.5 billion will be set aside in the new Majulah Package Fund, said Finance Minister Lawrence Wong in his Budget speech on Friday (Feb 16).
An additional S$700 million is expected to be derived from investment income from the initial injection of the funds.
The package, announced by Prime Minister Lee Hsien Loong during 2023’s National Day Rally, is targeted at Singaporeans born in 1973 or earlier, especially those born between 1960 and 1973.
While geared towards “young seniors”, the package will also benefit the Pioneer and Merdeka Generation seniors, Wong added.
Those eligible will receive an Earn and Save Bonus of up to S$1,000, with the first annual bonus credited to their CPF (Central Provident Fund) Retirement Account or Special Account in March 2025.
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To qualify for this, Singaporeans born in 1973 and earlier must be working, with an average monthly income of between S$500 and S$6,000; live in a residence with annual value of S$25,000 and below; and own not more than one property.
Meanwhile, a one-time Retirement Savings Bonus of between S$1,000 and S$1,500 will be given to eligible seniors, and will be credited to their CPF Retirement Account or Special Account in December 2024.
The eligibility criteria include: CPF retirement savings below the 2023 basic retirement sum of S$99,400 as at Dec 31, 2022; living in a residence with an annual value of S$25,000 and below; and owning not more than one property.
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This bonus will be tiered by their CPF retirement savings.
Finally, there will be a one-time MediSave Bonus for all seniors born 1973 and earlier. Young seniors with less means will be given the higher tier of S$1,500, while all other seniors will receive S$750.
The Minister for Manpower will share more details about the package at the Committee of Supply.
For more of BT’s Budget 2024 coverage, go to bt.sg/budget24
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