National Day Rally 2023: Singaporeans aged 50 and above to get new CPF bonus annually if they continue working

A Majulah Package to help those aged 50 and above prepare for retirement was announced by Prime Minister Lee Hsien Loong at his 2023 National Day Rally.

The three components of the package include an Earn and Save Bonus, he said at the Institute of Technical Education Headquarters today (Aug 20).

Eligible Singaporeans will receive up to $1,000 credited to their Central Provident Fund (CPF) account for every year they continue working, regardless whether it is full-time or part-time employment.

Affectionately referring to this group as "young seniors", PM Lee highlighted how they are younger than the Pioneer and Merdeka Generations, yet approaching retirement. They have benefitted less from Singapore's growth and therefore have less savings.

At the same time, many young seniors are sandwiched between taking care of elderly parents and children who have not graduated from school.

The second component of the Majulah Package is a Retirement Savings Bonus (RSB).

This is a one-time sum up to $1,500 for those whose CPF savings have not reached the Basic Retirement Sum.

The RSB will be eligible even for those not employed, such as homemakers.

The third component is a one-time MediSave Bonus, up to $1,000.

PM Lee added that the Pioneer and Merdeka Generations are also eligible for the Majulah Package, to encourage them to continue working.

Around 1.4 million Singaporeans are expected to benefit.

The Majulah Package is for lower-income Singaporeans born in 1973 or earlier, based on their income levels and CPF savings.

More details will be released later.

"A Better Home, A Brighter Future" is the theme for this year's National Day Rally. PM Lee covered topics such as skills upgrading and cost of living in his earlier Mandarin and Malay speeches.

tp@asiaone.com

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