Singapore has taken an important step to support retirement by announcing an increase in the Seniors’ Bonus for 2025. This is one of the continuous efforts of the Government to improve the financial well-being of its elderly population. Following is a summary of the main changes and newly added benefits for 2025.
Enhanced Assurance Package Seniors’ Bonus
Cash benefits ranging between S$200 and S$300 would be paid for about 850,000 lower-income senior citizens in Singapore aged 55 years and above in February 2025. This payment is under the Seniors’ Bonus of the Assurance Package (AP), which provides extra assistance to seniors living in Singapore.
To be eligible, the seniors concerned must be living in properties with an annual value (AV) up to S$31,000, having an assessable income (AI) not exceeding S$34,000 based on year assessment 2023, and own not more than one property.
The eligible seniors will be paid through PayNow-NRIC as early as February 5, 2025, depending on the mode of payment they have chosen.
Assurance Package MediSave Top-Ups
Other than the cash bonus, all Singaporeans, aged below 20 and 55 years and above, will receive a top-up of MediSave of S$150 into their CPF accounts in February 2025. This top-up scheme is introduced to help offset any healthcare expenses and build up savings for their old age.
About 2 million Singaporeans living in Singapore will benefit from the top-up regardless of the AV or AI of their property. Payments will be automatically credited to citizens’ CPF accounts starting from February 11, 2025.
Changes to CPF Accounts and Retirement Sums
To further bolster seniors’ retirement needs, there will be several important changes to the CPF.
- From early 2025, the Special Account (SA) will be closed for members aged 55 and above. Savings in the SA will be transferred to the Retirement Account (RA) up to the Full Retirement Sum (FRS), with any remaining SA savings being moved to the Ordinary Account (OA). Members can freely transfer any amount of these OA savings into the RA at any time, up to the new Enhanced Retirement Sum (ERS), to earn higher interest and receive higher retirement payouts.
- Also, the Enhanced Retirement Sum will be raised from three times the Basic Retirement Sum (BRS) to four times starting in 2025. This would enable members turning 55 to commit more of their CPF savings for higher CPF LIFE payouts. For example, a member turning 55 in 2025 can receive about S$3,300 per month in CPF LIFE payouts at age 65 should they elect to top up to the new ERS, up from about S$2,500 today.
Refined silver support scheme
By 2025, the Silver Support Scheme, which provides quarterly payments to seniors who had low incomes during their working years and achieved less family support, would enhance sets of changes. The event has raised quarterly payments by 20 percent to intensify efforts toward eligible senior Singaporeans with less retirement savings.
The per capita household income threshold will also broaden from $1,800 to $2,300, thus allowing more seniors to qualify. For instance, seniors residing in one to two room HDB flats will get $1,080, up from $900, quarterly with a household per capita monthly income of $1,500 or lower-from $1,080.
Introduction of the Majulah Package
The Majulah Package will benefit around 1.6 million older Singaporeans and further prepare them for retirement. The Earn and Save Bonus will entitle the lower- and middle-income worker to a bonus of between $400 and $1,000 deposited into their CPF, on top of employer and employee contributions, every year. A recipient must remain in the workforce, whether full-time or part-time, with an average monthly income between $500 and $6,000.
The Retirement Savings Bonus will give seniors whose CPF retirement savings fall below the Basic Retirement Sum a one-off bonus of between $1,000 and $1,500. This will be credited to their CPF Retirement Account or Special Account in December 2024.
In addition, there will be a one-off MediSave Bonus. The bonus will be given to every senior who meets the age requirement, although with an amount tiered according to year of birth, annual value of residence and property ownership. Young seniors with less mean will avail themselves of the higher tier of $1,500, while all other seniors will receive $750.
These holistic measures emphasize Singapore’s intention to improve the financial well-being and security of older citizens to allow them to enjoy relatively comfortable and dignified retirements.