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Enhanced Retirement Sum to be increased to four times the Basic Retirement Sum: Budget 2024

Khairani Afifi Noordin
Khairani Afifi Noordin • 2 min read
Enhanced Retirement Sum to be increased to four times the Basic Retirement Sum: Budget 2024
The Matched Retirement Savings Scheme will be expanded to cover Singaporeans aged 55 and above.
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The Enhanced Retirement Sum (ERS) — which is the maximum amount that members can put into their Central Provident Fund (CPF) retirement accounts to receive payouts — will be increased to four times the Basic Retirement Sum to $426,000 in 2025.

This will allow more people aged 55 and above to fully commit their accumulated CPF savings to receive higher CPF payouts, Deputy Prime Minister Lawrence Wong says in his Budget 2024 speech.

The Matched Retirement Savings Scheme will be expanded to cover Singaporeans aged 55 and above. The scheme will also see a higher annual matching cap of $2,000, with a lifetime matching cap of $20,000.

Meanwhile, the quarterly payments for the Silver Support Scheme will be increased by 20% to account for inflation. Qualifying per capita household income threshold has also been raised to $2,300 from $1,800 previously. 

There are also enhancements to the Majulah Package, which was introduced for Singaporeans born in 1973 or earlier. 

First is the Earn and Save Bonus, which consists of between $400 to $1,000 annual bonus to CPF Retirement or Special Account for Singaporeans who work and earn up to $6,000 per month.

See also: What may be included in Singapore's unemployment benefits for retrenched workers?

Singaporeans with CPF retirement savings of less than the 2023 Basic Retirement Sum of $99,400 can benefit from a one-off Retirement Savings Bonus between $1,000 to $1,500. 

These two bonuses will be eligible for seniors who live in a property with annual value of $25,000 or less. They must also not own more than one property.

Lastly, eligible seniors can enjoy a one-off MediSave Bonus between $750 to $1,500. 

See also: Sustainability leaders welcome $5 bil Future Energy Fund, hope for hydrogen breakthrough

Read more about Budget 2024 on The Edge Singapore.

 

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