Why is the Government implementing a lifetime cap of $20,000 to the matching grant when the Matched Retirement Savings Scheme is enhanced from 2025?
The Matched Retirement Savings Scheme is targeted at seniors with lesser means and lower retirement savings to help them save more for retirement. The enhancements to provide $2,000 matching grant annually, capped at $20,000 over a lifetime, are a significant increase from the current scheme, and can increase eligible seniors’ CPF savings by at least $48,000 in 10 years, which translates to about a $260 increase in monthly CPF payouts*.
While it may not help all eligible seniors meet the Basic Retirement Sum, it is part of a broader set of schemes providing retirement adequacy support. Other schemes, such as the Majulah Package and the Silver Support Scheme, will also help boost the retirement adequacy of seniors.
*Estimation for a male member who starts payout at age 65 on the CPF LIFE Standard Plan.
