SINGAPORE: A total of 440,000 Singaporeans aged 55 to 70 are eligible for a new savings scheme this year where the Government will match cash top-ups made to their Central Provident Fund (CPF) Retirement Accounts.
To qualify for the Matched Retirement Savings Scheme, the CPF members must have less than the prevailing Basic Retirement Sum in their accounts, said the CPF Board in a media release on Wednesday (Jan 6).
The Basic Retirement Sum this year is S$93,000.
Other eligibility criteria are: An average monthly income of not more than S$4,000, an annual value of residence of up to S$13,000 – which covers all Housing Board flats – and ownership of not more than one property.
About 53 per cent of CPF members between 55 and 70 years old are eligible for the grant, the CPF Board said.
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Under the scheme, which was announced during the Budget speech last year, cash top-ups made to eligible CPF members will be matched by the Government for the next five years, capped at S$600 per year.
These top-ups can be performed by anyone, including family members or employers. They can be made electronically via the CPF website or myCPF mobile app.
The top-ups do not need to be in a lump sum. "Small and regular top-ups (eg S$50 each month) throughout the year using GIRO can likewise receive up to S$600 matching grant," said the CPF Board.
Those eligible for the grant will be notified in January. Members can also check their eligibility on the CPF website.
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CPF Board CEO Augustin Lee said that about half of CPF members turning 55 do not have the Basic Retirement Sum.
"This matching grant by the Government will encourage them to save more with CPF. There’s no better savings interest rate than what CPF pays now," said Mr Lee.
"We hope their loved ones and the wider community can also pitch in," he added. "Even small amounts saved consistently can go a long way in securing CPF members’ retirement needs.”