70,000 CPF members will receive about $40 million in matching grants from the Government in January 2022 for the cash top-ups made to their Retirement Account (RA) between 1 January and 30 June this year, the CPF Board said in a press release on 18 August.
For a start, the scheme will run for 5 years. Under this scheme, for every dollar of cash top-ups that are made to eligible members’ retirement accounts, it will be matched by the Government. This is subject to an annual cap of $600 and works out to $3,000 over 5 years. With dollar for dollar matching, that $3000 is doubled to $6,000. And this is before factoring in the attractive CPF interest rates of up to 6% per annum.
But hey, the good news is that anyone can do the top-ups other than the members themselves. 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 (Retirement Account) of an eligible member. Any member of the community can do so!
Indeed, 40% of the 70,000 had received top-ups from their loved ones, with the majority coming from their children.
He said, “My parents have little CPF savings in their RA, and the MRSS would help them build up their retirement nest egg as top-ups are matched by the Government. I strongly urge my peers to top-up for their parents, as every dollar counts when it comes to retirement planning. This is especially so for parents who have started saving later.”
Director from the Retirement Savings Department Ms Ong Woei Jiin said, “It is encouraging to see more seniors topping up their CPF accounts for the first time to benefit from the matching grant and attractive CPF interest rates. I am particularly heartened to see the children of eligible members stepping up to help boost the retirement savings of their parents. For other eligible members who have yet to make top-ups, we strongly encourage them and their loved ones to do so as soon as possible, as these top-ups and matching grants will allow members to enjoy higher monthly payouts in retirement.”
The matching grants from the Government will be credited in January 2022.