Budget 2024–Changes to Personal Reliefs /CPF

09/04/2024

Singapore Budget 2024 Changes to Personal Reliefs / CPF:

Increase in Enhanced Retirement Sum (ERS)

Starting from 2025, the ERS will be increased from 3 times the Basic Retirement Sum (BRS) to 4 times. This adjustment will enable CPF members to receive higher monthly payouts for life, providing greater financial security during retirement.

Closure of CPF Special Account for Aged 55 and Above

Effective from 2025, the CPF Special Account (SA) will be closed for individuals aged 55 and above. The SA savings will be transferred to the Retirement Account (RA) up to the Full Retirement Sum, with the remaining balance transferred to the Ordinary Account (OA).

Increase in CPF Contribution Rates for Senior Workers

To strengthen the retirement adequacy of senior workers, CPF contribution rates for employees aged 55 to 65 will be raised by 1.5 percentage points from January 1, 2025.

Majulah Package

The Majulah Package includes several initiatives aimed at providing additional support to seniors, such as the Earn and Save Bonus (ESB), Retirement Savings Bonus (RSB), and MediSave Bonus (MSB).

MediSave Bonus for Ages 21 to 50

To help Singaporeans build up their medical savings, all adult Singaporeans aged 21 to 50 will receive a one-time MediSave Bonus of up to S$300 in December 2024.

Enhancements to Matched Retirement Savings Scheme (MRSS)

The MRSS will be extended to those above age 70 from January 1, 2025, with an increased annual matching cap and lifetime matching cap.

Enhancements to Silver Support Scheme

Cash payments under the Silver Support Scheme will be increased by 20% from 2025, with a raised qualifying household monthly income per person threshold.

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