The Majulah Package is a government initiative in Singapore designed to enhance the financial well-being of seniors. It includes the Retirement Savings Bonus (RSB), a one-time top-up to the Central Provident Fund (CPF) accounts of eligible seniors, particularly those with lower CPF balances who are nearing retirement.
Targeting those aged 51 and above, including the Pioneer and Merdeka Generations, the package aims to fill gaps in retirement savings and help seniors meet their financial needs. By ensuring adequate savings, the Majulah Package helps maintain the economic well-being of Singapore’s elderly population.
The RSB is scheduled to be credited to eligible seniors in December 2025, without requiring any application process. Eligible individuals will automatically receive the bonus based on their CPF balances, making it an efficient and accessible way to enhance their retirement savings.
Table of Contents
What is the Retirement Savings Bonus?
The Retirement Savings Bonus is a one-time top-up to an individual’s CPF Retirement or Special Account, aimed at helping seniors with lower savings. The bonus amount is higher for those with smaller balances, helping them reach the Basic Retirement Sum (BRS). This initiative by the Singapore government ensures that seniors have enough resources for their retirement and healthcare needs.
The bonus is automatically credited to the CPF accounts of eligible individuals in December 2025. This seamless process eliminates the need for complex application procedures, ensuring that the process is accessible for everyone who meets the criteria. It serves as part of a broader strategy to strengthen retirement security and ensure that no Singaporean senior is left without adequate savings.
Eligibility Criteria
To qualify for the Retirement Savings Bonus under the Majulah Package, individuals must meet the following criteria:
- Age: Applicants must have been born in 1973 or earlier.
- CPF Retirement Savings: As of December 31, 2022, the individual’s CPF retirement savings must be below the Basic Retirement Sum (BRS) of $99,400.
- Annual Value of Residence: The individual’s residential property must have an Annual Value (AV) of $25,000 or less as of December 31, 2023.
- Property Ownership: Only individuals who own no more than one property are eligible.
These criteria ensure that the bonus reaches those who are most in need of additional financial assistance, especially those with lower savings and modest housing situations. The aim is to provide more economic stability for seniors as they approach or enter retirement.
Bonus Amounts and Payment
The amount of the Retirement Savings Bonus depends on the individual’s CPF retirement savings. The government has set the following tiers:
| CPF Retirement Savings | Retirement Savings Bonus |
|---|---|
| Less than $60,000 | $1,500 |
| $60,000 – $99,400 | $1,000 |
The bonus will be credited to the recipient’s CPF Retirement or Special Account. If a Retirement Account (RA) is not established, the bonus will be credited to the Special Account (SA) instead. The automatic process of crediting the bonus means that no additional steps are required from recipients to claim their bonus.
Once the bonus is credited, eligible individuals will receive notification via SMS or letter. This ensures they are informed of the support they have received, making the entire process transparent and straightforward.
Additional Support Components
In addition to the Retirement Savings Bonus, the Majulah Package provides further assistance to eligible seniors through several additional components. These include:
- Earn and Save Bonus: For seniors who are still working, this bonus provides an additional top-up to their CPF accounts, based on their average monthly earnings. The bonus amount can range from $400 to $1,000 per year, depending on their income.
- MediSave Bonus: This is a one-time top-up of up to $2,000 to an individual’s MediSave account, based on age, Annual Value of the residence, and property ownership status. This bonus is designed to help cover healthcare costs and ensure seniors can access necessary medical services.
Together, these components of the Majulah Package provide a comprehensive safety net for seniors, addressing both their retirement savings and healthcare needs. The combination of these bonuses ensures that seniors are well-supported as they transition into retirement.
Payment Timeline
The Retirement Savings Bonus will be credited to the CPF accounts of eligible individuals in December. No application is required, as the CPF Board will assess eligibility based on the available information. The payment will be processed directly into the CPF Retirement or Special Account, depending on the account status.
Eligible seniors will be notified once the payment is credited to their CPF accounts. The government’s efficient process ensures that recipients can access these funds promptly, enabling them to manage their retirement and healthcare expenses better. This automated approach makes the process hassle-free and accessible to all individuals who meet the qualification criteria.
Frequently Asked Questions:
1. Who qualifies for the Retirement Savings Bonus under the Majulah Package?
To be eligible, individuals must have been born in 1973 or earlier, have CPF retirement savings below the Basic Retirement Sum of $99,400, and meet property ownership and annual value requirements.
2. How much will I receive under the Majulah Package?
If your CPF retirement savings are less than $60,000, you will receive $1,500. If your savings fall between $60,000 and $99,400, you will receive $1,000.
3. Is there an application process to receive the bonus?
No, the Retirement Savings Bonus will be automatically credited to your CPF Retirement or Special Account in December 2024. There is no need to apply.
4. When will the bonus be credited?
The bonus will be credited to the CPF accounts of eligible individuals in December 2024, and recipients will be notified once the bonus is credited.
5. Can I use the Retirement Savings Bonus for anything?
The bonus will be added to your CPF retirement savings and can be used for retirement purposes under the CPF scheme. It can also be used to cover healthcare costs if it is deposited into your MediSave account.
I would like to hear more about this platform please explain.