With Singaporeans aging, financial security in retirement has become an increasingly pertinent concern, especially among people in their late fifties and early sixties. To address this, the Singaporean government has announced the Majulah Package, a targeted measure to boost retirement and healthcare savings for citizens born in or before 1973.
This support package comes at a very opportune time for young seniors who have been shouldering the responsibilities of the workforce while providing for their children and elderly parents. With rising costs of living and inflation, many are finding it even harder to beam themselves into a comfortable retirement.
The Majulah Package aims to alleviate this pressure by providing CPF bonuses every year and one-time top-ups, providing greater financial security in the golden years.
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What is the Majulah Package?
As narrated by Prime Minister Lee Hsien Loong on the occasion of the National Day Rally in 2023, the Majulah Package is a scheme targeted at lower- to middle-income Singaporeans aged sixty and above and is tested for means. It comprises three major areas:
- Earn and Save Bonus – The Earn and Save Bonus is a CPF bonus of $400 to $1,000 for elderly workers working either full-time or part-time.
- Retirement Savings Bonus (RSB) – A one-time CPF top-up of $1,000 to $1,500 for people who have not made the Basic Retirement Sum (BRS).
- Medisave Bonus – This gives a top-up of between $500 to $1,000 to support medical costs.
How Does the Majulah Package Help Young Seniors?
The younger seniors in Singapore presently find themselves in a sandwich generation that is walking a tightrope between supporting their children’s education and caring for the practical needs of their aging parents. It records the rich benefits enjoyed by this generation through the growth of the Singaporean economy; however, their income often lags behind that of those younger than them.
Hence, the Majulah Package meets the above challenges in terms of:
- Employment will be encouraged with the Earn and Save Bonus, making sure of continued CPF contributions.
- Retirement funds will be bolstered for those who have not attained their BRS, acting as a safety net.
- Medisave top-up will help with medical costs, therefore minimizing out-of-pocket expenses.
- The Majulah Package opens up options for seniors to use their additional CPF savings to decide on retirement, good and hard for the family.
Who is Eligible for the Majulah Package in Singapore
- For citizens of Singapore born in 1973 or earlier.
- Singaporean citizenship is for Singaporean residents.
- To be a full-time employee, self-employed, or a platform worker.
- $500 to $6,000 monthly average income as computed annually in the previous Year of Assessment.
- Owns a dwelling with an annual value of not more than $31,000.
- No more than one property owned.
How to Apply the Majulah Package Singapore
Employees and Platform Workers
- No application required
- Your Earn and Save Bonus eligibility will be automatically assessed
Self-employed persons
- Declare your income to IRAS to be assessed for the Earn and Save Bonus