In 2025, the Assurance Package (AP) Seniors’ Bonus will be improved as part of a major strategy by Singapore to strengthen the financial well-being of its aging citizenry. The goal is to provide some relief from cost-of-living pressures and more support to lower-middle-income families.
An Overview of the Enhanced Assurance Package
During Budget 2024, the Singapore government announced an enhancement worth $1.9 billion to the Assurance Package. A comprehensive plan that includes cash payouts, MediSave top-ups, and other financial assistance to eligible Singaporeans.
The AP Seniors’ Bonus will now provide cash payouts ranging from $600 to $900 over the span of three years, from 2023 to 2025, to eligible senior citizens. In addition, the AP MediSave Top-ups will ensure that both Singaporeans aged 20 years and below and those aged 55 years and above will receive MediSave top-ups of an accumulated $450 over three years. These initiatives are meant to help offset health expenditures and build medical savings for old age.
Critical Changes to Take Effect in 2025.
The AP Seniors’ Bonus in February 2025 will give $200 to $300 to nearly 850,000 low-income senior citizens in Singapore who are aged 55 and older. This cash benefit is for a citizen of Singapore without more than one property and residing in a property with an Annual Value (AV) of up to $31,000 and with Assessable Income (AI) of no more than $34,000.
In February 2025, every Singaporean aged 20 years and below or 55 years and above will receive an AP MediSave top-up of $150 into their CPF accounts. Almost two million Singaporeans residing in Singapore will enjoy the benefit of this top-up, regardless of the AV of their homes or their AI.
Eligibility Criteria and Notification Procedure
Eligible recipients will receive an SMS notification after the benefits have been credited in February 2025. For recipients without a Singpass-registered mobile number or those not receiving an SMS, they will be informed by a letter sent to their registered address. To protect against scams, the SMS notifications sent from “gov.sg” will inform citizens only about their benefits and will not request any personal information.
Additional Support Measures for Seniors
In conjunction with the Senior Citizens’ Additional Pay, various other measures have been set in place by the government to further strengthen the elderly.
- From 2026 to 2030, the Matched MediSave Scheme will be in effect. Under this scheme, for every dollar of voluntary cash top-up to the MediSave Account of eligible CPF members aged 55 to 70, the government will match it dollar-for-dollar. The matching is subject to an annual cap of $1,000. This scheme is meant to promote healthcare savings for those seniors with lesser balances.
- The Silver Support Scheme will also be enhanced in 2025. Under this scheme, quarterly payments will be raised by 20% to give extra support to eligible senior Singaporeans who have less to draw on in retirement. In addition, the qualifying household monthly income per person threshold will be raised from $1,800 to $2,300.
- The Silver Housing Bonus (SHB) will see enhancement effective December 1, 2025, including eligibility criteria and an increase in cash bonuses for seniors who downsize into smaller flats. To bolster retirees wanting to use their housing options to supplement their retirement income, the improvements will hopefully give greater emphasis.
Conclusion
These measures demonstrate Singapore’s renewed commitment to better the financial security of its senior citizens. The increase in the AP Seniors’ Bonus in conjunction with the other support schemes further demonstrates the resolve of the Government to ensure that their aged constituents can retire comfortably and with dignity.