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70,000 CPF members to receive S$40 million in matching grants to their retirement accounts

70,000 CPF members to receive S$40 million in matching grants to their retirement accounts

File photo of the CPF Bishan service centre. (Photo: Marcus Mark Ramos)

SINGAPORE: A total of 70,000 Central Provident Fund (CPF) members aged 55 to 70 will receive about S$40 million in matching grants from the Government in January next year, for cash top-ups that were made to their retirement accounts in the first half of this year.

The top-ups and matching grants will increase their monthly retirement payouts, the CPF Board said in a media release on Wednesday (Aug 18). 

The matching grants are part of a scheme launched earlier this year to help seniors who have not met the prevailing basic retirement sum, which is S$93,000 this year.

Every dollar of cash top-ups made to eligible members will be matched by the Government, up to an annual cap of S$600. Anyone can make the top-ups to eligible members.

Of the 70,000 members, 80 per cent received top-ups for the first time, and 90 per cent received top-ups of S$600 or more, said the CPF Board on Wednesday. Forty per cent of them had received top-ups from their loved ones, with the majority coming from their children.

The CPF board had said in January that 440,000 Singaporeans were eligible for the scheme. 

To qualify, their average monthly income must not be more than S$4,000, the annual value of their residence should not be more than S$13,000 – which covers all Housing Board flats – and they should not own more than one property.

No application is needed for the scheme, which will run for five years for a start. Those eligible for the grant were notified via e-mail, SMS or post in January this year.

The CPF Board cited the example of Mr Jeffrey Lee, who said he has been topping up S$50 monthly for both his parents to help them "build up their retirement nest egg". 

"Every dollar counts when it comes to retirement planning. This is especially so for parents who have started saving later," said Mr Lee, who is in his 20s.

Ms Ong Woei Jiin, director from CPF Board's retirement savings department 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," she said. 

To receive the matching grant of up to S$600 for 2021, the cash top-ups to the retirement accounts of eligible CPF members will have to be put in before the end of this year, and the matching grants will be credited in January 2022. 

Members can top-up electronically via the CPF website or myCPF mobile app. 

Source: CNA/ad(gs)

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