70,000 CPF members will receive about $40 million in matching grants from the Government in January 2022 for the cash top-ups made to their Retirement Account (RA) between 1 January and 30 June this year. These top-ups and matching grants will increase their monthly retirement payouts.
The Matched Retirement Savings Scheme (MRSS) was launched earlier this year to help seniors who have yet to meet the prevailing Basic Retirement Sum (BRS) save more for their retirement. Under the MRSS, every dollar of cash top-ups made to eligible[1] members will be matched by the Government, up to an annual cap of $600. Anyone can make the cash top-ups to eligible members. The MRSS will run for five years for a start. No application is needed, and eligible members were notified via e-mail, SMS or post in January this year.
Of the 70,000 members:
a) 8 in 10 had received top-ups for the first time;
b) 9 in 10 had received top-ups of $600 or more; and
c) 40 per cent had received top-ups from their loved ones, with the majority coming from their children.
For instance, Mr Jeffrey Lee, a CPF member in his 20s, has been topping up $50 monthly for both his parents since the start of the year. He said, “My parents have little CPF savings in their RA, and the MRSS would help them build up their retirement nest egg as top-ups are matched by the Government. I strongly urge my peers to top up for their parents, as every dollar counts when it comes to retirement planning. This is especially so for parents who have started saving later.”
Director from the Retirement Savings Department Ms Ong Woei Jiin said, “It is encouraging to see more seniors topping up their CPF accounts for the first time to benefit from the matching grant and attractive CPF interest rates. I am particularly heartened to see the children of eligible members stepping up to help boost the retirement savings of their parents. For other eligible members who have yet to make top-ups, we strongly encourage them and their loved ones to do so as soon as possible, as these top-ups and matching grants will allow members to enjoy higher monthly payouts in retirement.”
To receive the matching grant of up to $600 for 2021, cash top-ups to the RA of MRSS-eligible members have to be made before the end of this year. The matching grants from the Government will be credited in January 2022. For greater convenience, members can top up electronically via the CPF website or myCPF mobile app. Visit cpf.gov.sg/mrss to find out more about the Matched Retirement Savings Scheme.
[1] To be eligible for the matching grant, CPF members must be between age 55 and 70, with less than the prevailing BRS in their RA. The BRS for 2021 is $93,000. Other eligibility criteria include: (i) average monthly income of not more than $4,000; (ii) annual value of residence of not more than $13,000; and (iii) ownership of not more than one property.