What are the benefits of the Matched Retirement Savings Scheme?
Under the Matched Retirement Savings Scheme, you will enjoy:
- dollar-for-dollar matching grant for cash top-ups received, up to $600 per year;
- interest rates* up to 6% per annum on your cash top-ups, allowing you to enjoy higher monthly payouts in retirement; and
- tax relief if you’re making the cash top-up to yourself or your loved ones. If you are an employer who’s making cash top-ups for your employees, you will also qualify for tax deductions.
For example, if you have $40,000 in your Retirement Account (RA) when you turn 55 in 2021 and receive a yearly cash top-up of $600 to in your RA for five years, you will receive a total matching grant of $3,000 from the government. Coupled with interest rates* of up to 6% per annum, you will accumulate an additional $8,300 in your RA by the time you turn 65, allowing you to enjoy higher monthly payouts ($45 more) for life.
*Based on the interest rate floor of 4% per annum on Special/Retirement Account.