18 February 2025
Prime Minister and Minister for Finance Lawrence Wong made several CPF-related announcements during the FY2025 Budget Statement in Parliament on 18 February 2025, as stated below.
1. Increase in CPF contribution rates for senior workers and CPF Transition Offset
In line with the recommendations of the Tripartite Workgroup on Older Workers, the CPF contribution rates for senior workers will increase as planned to strengthen their retirement adequacy. The total contribution rates for employees aged above 55 to 65 will be raised by 1.5 percentage points in 2026.
The CPF Transition Offset equivalent to half of the 2026 increase in employer CPF contributions will be provided to employers to cushion the impact on business cost. This will be provided automatically and employers need not apply for the offset.
For more information, please refer to the FAQs.
2. Expansion of the Matched Retirement Savings Scheme to Singaporeans with disabilities of all ages
Today, the Matched Retirement Savings Scheme (MRSS) helps Singaporeans aged 55 and above with lower retirement savings to save more for their retirement, through dollar-to-dollar matching grants of up to $2,000 per year on voluntary cash top-ups received in their Retirement Account, with a lifetime limit of $20,000.
From 1 January 2026, the MRSS will be expanded to eligible Singaporeans with disabilities of all ages to help them save up for their retirement early. To qualify for the MRSS, Singaporeans with disabilities must be registered with the Ministry of Social and Family Development (MSF) and meet other MRSS eligibility criteria, including CPF balances, monthly income, and Annual Value of their residential property. More details on how to register as a person with disability will be released in the second half of 2025.
For more information, please refer to the FAQs.
3. Matched MediSave Scheme
To further boost MediSave adequacy for seniors with lower balances, a five-year Matched MediSave Scheme (MMSS) will be introduced from 2026 to 2030.
Under the MMSS, the Government will match every dollar in voluntary cash top-ups to the MediSave Account (MA) of eligible CPF members aged 55 to 70, up to an annual cap of $1,000. Anyone, including eligible members themselves, their families, employers, and the community, can make the top-ups to eligible members’ MA. MMSS will help these lower-income individuals boost their healthcare savings and improve the affordability of their medical bills as they age.
The MMSS will complement the Matched Retirement Savings Scheme in enabling our seniors to save more for both their healthcare and retirement needs.
To be eligible for the MMSS, the CPF member whose account is being topped up must:
- Be a Singapore Citizen aged 55 to 70;
- Own no more than one property and have a residential AV of $21,000 or below;
- Have a personal monthly income not exceeding $4,000; and
- Have MA balances of less than half the prevailing Basic Healthcare Sum.
MMSS eligibility is automatically assessed every year, and CPF Board will notify eligible members at the beginning of each year, from January 2026. Matching grants by the Government will be disbursed to eligible members in the following year.
For more information, please refer to the FAQs.
Note: Cash top-ups that attract government matching grant will not qualify for tax relief. Members may continue to enjoy tax relief of up to $8,000 per year for eligible cash top-ups that do not attract matching grant to their own Special Account (SA), Retirement Account (RA) or MediSave Account (MA), and another $8,000 per year for such cash top-ups to their loved ones.