CPFB | Budget Highlights 2022

Budget Highlights 2022

18 February 2022

Increase in Estimated Monthly Payouts and Retirement Sums for Members Reaching Age 55 in 2023 to 2027

The Basic Retirement Sum (BRS) monthly payouts will be increased with each cohort turning 65 in years 2033 to 2037. Specifically, the Basic Retirement Sum (BRS) payouts will provide members with about $1,000 per month* for the cohort turning 65 in 2037 under the CPF LIFE Standard Plan, up from the BRS payout of about $850 for the cohort turning 65 in 2032. This will give our retirees greater peace of mind in retirement.

CPF withdrawal rules remain unchanged. Members are also not required to top up their CPF accounts in cash or sell their property if they have less savings than the BRS. Those who meet the eligibility criteria for enhanced Silver Support Scheme will receive additional retirement support from the Government of up to $900 per quarter.

Members who prefer to receive higher monthly payouts can choose to set aside the Full Retirement Sum (FRS), or up to Enhanced Retirement Sum (ERS), which are currently set at two times the BRS and three times the BRS, respectively.

Please refer to the table below for the increase in estimated monthly payouts and Retirement Sums for members turning age 55 from 2023 to 2027.

Year member turns age 55	Estimated BRS Payout at age 65	RA Balance^# at age 65 with BRS	BRS to be set aside at age 55	Estimated FRS Payout at age 65	RA Balance^# at age 65 with FRS	FRS to be set aside at age 55	Estimated ERS Payout at age 65	RA Balance^# at age 65 with ERS	ERS to be set aside at age 55
2023	$870	$154,500	$99,400	$1,620	$298,800	$198,800	$2,370	$443,100	$298,200
2024	$900	$159,600	$102,900	$1,670	$308,900	$205,800	$2,450	$458,300	$308,700
2025	$930	$164,800	$106,500	$1,730	$319,400	$213,000	$2,530	$474,000	$319,500
2026	$950	$170,200	$110,200	$1,780	$330,100	$220,400	$2,610	$490,100	$330,600
2027	$980	$175,800	$114,100	$1,840	$341,500	$228,200	$2,690	$507,100	$342,300

*Assumes a male member under CPF LIFE Standard Plan, starting payouts at age 65. These are estimated payouts based on factors such as current mortality trends and interest rates.

^#Assumes interest is earned for the full ten years from age 55 to age 65, and member chose not to exercise Payout Eligibility Age flexibility to withdraw up to 20% of RA balances at 65.

Enhancements to the Workfare Income Supplement Scheme

From January 2023, the Workfare Income Supplement (WIS) Scheme will be enhanced to supplement the incomes and CPF savings of lower-wage workers, and encourage them to work regularly.

The Workfare Income Supplement (WIS) Scheme will be extended to younger workers aged 30 to 34. A minimum income criterion for WIS of $500 per month will also be introduced. Correspondingly, self-employed persons (SEPs) must have a minimum annual net trade income (NTI) of $6,000 to qualify for WIS. This is to encourage part-timers and casual workers to take up regular, full-time work.

The maximum annual WIS payouts will also be increased from $4,000 to $4,200. Persons with disabilities (PWDs) will qualify for the highest payout tier (up to $4,200), regardless of age.

Higher CPF contribution rates for senior workers and CPF Transition Offset

From January 2023, the employer and employee CPF contribution rates for employees aged above 55 to 70 will be raised by up to 1 percentage point each to support senior workers’ retirement adequacy.

CPF Transition Offset (CTO) will be provided to cover half of the increase in employer CPF contribution rates in 2023.

Contact Information

CPF Board

Write to us: cpf.gov.sg/writetous

Call us: 1800-227-1188 (Monday to Friday: 8.00am to 5.30pm)

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Increase in Estimated Monthly Payouts and Retirement Sums for Members Reaching Age 55 in 2023 to 2027