Think of this as a 58th National Day present. The $7 billion Majulah Package was announced during National Day Rally 2023 and it is expected to benefit about 1.4 million older Singaporeans, including “young seniors”.
More than eight in 10 Singapore citizens aged 50 and above in 2023 are the ones who are in this category – those who are born in 1973 or earlier. It includes those who are either about to retire or who may have recently retired. The Majulah Package is targeted at Singaporeans in their 50s and early 60s.
Prime Minister Lee Hsien Loong had said that the Ministry of Finance will create a fund to meet the full lifetime costs of the Majulah Package, using resources from this term of government.
More Details About The Majulah Package
The Ministry of Manpower (MOM) said that the package benefits are means-tested to ensure that support goes to those who need it the most.
The minimum amounts of bonus for those eligible for the Earn and Save Bonus, Retirement Savings Bonus and MediSave Bonus are S$400, S$1,000 and S$500 respectively, said MOM.
The eligibility criteria for the various benefits will include factors such as income, annual value of residence, whether an individual owns more than one property, and CPF savings. More details will be announced in 2024.
For the Majulah Package, there is no need to have obtained citizenship by a certain year to be eligible. Details on when the Majulah Package benefits will be given out will be announced next year as well.
Majulah Package: Earn And Save Bonus
The first component of the package is the Earn and Save Bonus, which will provide an annual bonus for lower- to middle-income workers to build up their CPF savings while they work.
Lower- and middle-income workers will be given a CPF bonus of between $400 and $1,000 yearly. This bonus will be credited to the recipient’s CPF account, on top of the usual employer and employee contributions.
Eligible individuals will receive this bonus yearly as long as they are working, whether it is part-time or full-time work.
For example, a lower-income 55-year-old who plans to retire at 65, will benefit up to $12,000 in extra CPF savings, including interest.
Those in the Pioneer Generation and Merdeka Generation will receive the Earn and Save Bonus if they are still working and meet the income criteria. Those who are not working can still get something from the Retirement Savings Bonus and MediSave Bonus.
The people who are grouped as the Merdeka Generation are those who were born between 1950 and 1959. For the Pioneer Generation, these are people who were born in 1949 or earlier.
Majulah Package: Retirement Savings Bonus
A one-time bonus in retirement savings will be given to those who have yet to save up to the Basic Retirement Sum (BRS), including those who are unable to work. This means that those who are not working, including homemakers who have given up their careers for their families, will also receive this bonus.
They will receive a one-time CPF bonus of between $1,000 and $1,500.
Currently, the CPF BRS for those turning 55 this year is $99,400, and it will continue to increase by 3.5% year-on-year, until 2027. This means that for those turning 55 in 2027, the CPF BRS will be $114,100. The BRS is the minimum amount a CPF member must set aside at age 55 for retirement needs.
Majulah Package: Medisave Bonus
There will also be a one-time bonus in healthcare savings for eligible Singapore citizens. This will be in the form of a MediSave Bonus comprising a one-time top-up of between $500 and $1,000.
Describing the top-up as “modest”, Prime Minister Lee had said it will give Singaporeans some extra buffer to help pay for medical expenses and insurance premiums.
Other Enhancements That Were Announced For Young Seniors
Other than the Majulah Package, the government will also be enhancing existing schemes, such as Workfare Income Supplement, Silver Support and the Matched Retirement Savings Scheme. More details of the changes will be announced next year.
Read Also: National Day Rally 2023: 5 Announcements That Will Financially Impact Singaporeans
The post Guide To The Majulah Package: Earn & Save, Retirement Savings Bonus, And Medisave Bonus appeared first on DollarsAndSense.sg.
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