Grow your CPF with Matched Retirement Savings Scheme; 440,000 members qualify

Matched Retirement Savings

Matched Retirement Savings Scheme (MRSS)

Good news! The Government has introduced the Matched Retirement Savings Scheme (MRSS) to help senior Singaporeans who have yet to meet the Basic Retirement Sum (BRS) save more for retirement.

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Here’s how it works. For five years, from 2021 to 2025, the Government will match dollar-for-dollar cash top-ups made to members’ Retirement accounts – up to an annual cap of $600.

This can amount to $3,000 in top-ups over five years. And with dollar-for-dollar matching, this $3,000 you put into your retirement fund or that of a loved one will double to $6,000. Great, isn’t it?

Benefits of Matched Retirement Savings Scheme: higher monthly payouts

More savings means higher monthly payouts for retirement!

There’s no better savings interest rate than what CPF pays now. Your cash top-up and the matching grant you receive from the government enjoy attractive CPF interest rates of up to 6% per annum. No kidding! No financial institutions offer interest rates that come anywhere close.

This means the $3,000 you put into your Retirement Account over five years will grow to $8,300 when you are 65. Like this:

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Who can make the top-up?

Anyone. Yup, you heard right. Anyone can make the top-up. Eligible members themselves can make the top-up. Their loved ones or employers can do the top-up for them. You don’t even need to be a family member to top-up the RA of an eligible member. Any members of the community can do so! Hey, a chance to do something good, right?

These top-ups need not be in a lump sum. They can be small and regular top-ups (e.g. $50 each month) throughout the year. Understandably, some elderly members will need support for the top-ups.

We hope their loved ones and the wider community can also pitch in. Even small amounts saved consistently can go a long way in securing CPF members’ retirement needs.

Making CPF top-ups to her parents for the first time is Mdm Katherine Ou. Katherine has been looking forward to the MRSS since it was first announced during Budget 2020. She said, “My parents have little CPF savings, especially my mother, a housewife. I want to make top-ups to their CPF accounts so they can receive the matching grant from the Government and be better prepared for retirement.” Together with the matching grant, these top-ups would help her mother, Mdm Susan Lye, to have more monthly CPF payouts four years later when she turns 65.

Top-ups can be made electronically via the CPF website or myCPF mobile app. They can also be done through GIRO.

Enjoy up to $7,000 in tax relief

Here’s another reason to do the top-up. Tax relief!

When members make the cash top-up to themselves, they receive matching grants from the government and enjoy up to $7,000 in tax relief. Likewise, one who tops up the RA of loved ones – parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings, also enjoy up to $7,000 tax relief.

When employers make top-ups to their employees, employers can qualify for an equivalent amount of tax deduction, and employees can enjoy tax relief of up to $7,000 each year.

Eligibility criteria

The MRSS is for members with little CPF savings.

CPF members must be between ages 55 and 70. They also have less than the prevailing Basic Retirement Sum (BRS) in their Retirement Account (RA).

For 2021 the BRS is $93,000. Other eligibility criteria include average monthly income, the annual value of residence and property ownership.

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According to the CPF Board, 440,000 CPF members will be eligible for the scheme in 2021. 

There’s no need to apply for MRSS as eligibility is assessed automatically with government data. CPF Board will notify eligible members in January. With immediate effect, members can also check their eligibility online via the CPF website.

When will I receive the matching grant?

The matching grant for a given year will be automatically credited to the eligible member’s RA at the beginning of the following year. For example, the matching gift will be presented at the beginning of 2022 after we have totalled all the cash top-ups made in 2021.

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