Budget 2024: More support for older Singaporeans to help meet retirement needs

• The S$8.2 billion Majulah Package will benefit 1.6 million Singaporeans
• S$3.5 billion set aside to help seniors age well
• Enhanced schemes to help low-income seniors

AROUND 1.6 million Singaporeans born in 1973 and earlier will get more help to boost their retirement savings, said Finance Minister Lawrence Wong on Friday (Feb 16). 

Under the Majulah Package, which was announced at last year’s National Day Rally, working seniors will receive a yearly Central Provident Fund (CPF) bonus of up to S$1,000. Singaporeans who have not met the basic retirement sum will also receive a one-time bonus of S$1,000 to S$1,500. 

The MediSave Bonus – the third component of the Majulah Package – will be bumped up to S$1,500 for those born in 1960 to 1973 with “less means”. 

Altogether, the Majulah Package is expected to have a lifetime cost of S$8.2 billion. 

The government will set aside S$7.5 billion in a new Majulah Package Fund to cover this, said Wong, who is also deputy prime minister. An additional S$700 million is expected to be derived from investment income from the initial fund injection. 

To qualify for the first component of the package, the Earn and Save Bonus (ESB), the recipient must remain in the workforce, whether in a full-time or part-time capacity. They must also earn an average monthly income between S$500 and S$6,000. 

Those who are eligible will receive their first annual payout in their CPF Retirement Account or Special Account in March 2025.

To receive the one-time Retirement Savings Bonus (RSB), seniors must have CPF retirement savings below the 2023 basic retirement sum of S$99,400. Eligible seniors will have between S$1,000 and S$1,500 credited into their CPF Retirement Account or Special Account in December 2024. 

Both the ESB and RSB are applicable only to seniors who live in a property with an annual value of S$25,000 or less, and own no more than one property. 

Meanwhile, the MediSave bonus will be given to all seniors who meet the age requirement. It will be tiered according to their age, the annual value of their property and whether they own more than one property. The sum will be credited into their CPF MediSave Account in December 2024. 

More help for seniors

The government will also set aside S$3.5 billion over the next decade for Age Well SG initiatives. Announced last year, the programme aims to help seniors age actively and stay socially connected. 

These include an expanded network of Active Ageing Centres with a wider range of activities; more assisted-living options; more amenities and senior-friendly home fittings in residential estates; and improvements to commuter infrastructure for mobility and safety. 

To further support seniors who need more help, the Silver Support Scheme (SSS) will also be strengthened, Wong said.

More seniors who had low incomes during their working years and lower levels of familial support will now qualify for the scheme, with the qualifying per capita household income threshold raised to S$2,300, from S$1,800 currently.

Quarterly payments under the scheme will also be increased by 20 per cent, Wong added.

The Matched Retirement Savings Scheme (MRSS), which encourages Singaporeans aged 55 to 70 with less CPF savings to save more through dollar-for-dollar matching, will also be enhanced.

The MRSS will be extended to those above the age of 70, while the annual matching cap will be increased to S$2,000, up from S$600 now, with a lifetime matching cap of S$20,000.

However, the tax relief for cash top-ups that attract the matching grant will be removed, Wong said.

The changes to the SSS and MRSS will take effect from 2025.