In a move to strengthen retirement security for its aging population, the Singapore government has introduced the Majulah Package, a comprehensive support scheme aimed at helping seniors with lower Central Provident Fund (CPF) savings.
Announced by Deputy Prime Minister Lawrence Wong during Budget 2024, the Majulah Package is targeted at Singaporeans born in 1973 or earlier. It is designed to uplift retirement adequacy and ease healthcare costs, particularly for those in the lower- to middle-income bracket. Over 1.6 million Singaporeans are expected to benefit from the initiative.
What is the Majulah Package?
The Majulah Package comprises three key components:
- Earn and Save Bonus (ESB)
- Retirement Savings Bonus (RSB)
- MediSave Bonus
Each component addresses different financial needs, from boosting retirement savings to helping with medical expenses.
1. Annual Earn and Save Bonus (ESB)
The Earn and Save Bonus is designed to reward working seniors who continue to contribute to their CPF accounts.
- Eligibility: Singaporeans born in 1973 or earlier who:
- Have an average monthly income of $500 to $6,000
- Live in properties with an Annual Value (AV) of $31,000 or less
- Own no more than one property
- Benefit: Eligible individuals will receive $400 to $1,000 annually credited to their CPF Retirement Account (if aged 55 and above) or Special Account (if below 55), depending on their age and income level.
This annual bonus is aimed at encouraging continuous work and CPF contributions even in later years.
2. One-Time Retirement Savings Bonus (RSB)
The Retirement Savings Bonus helps those whose CPF balances fall below the Basic Retirement Sum (BRS) of $99,400 (as of 31 December 2022).
- Eligibility: Singaporeans born in 1973 or earlier who:
- Have CPF balances below the BRS
- Live in properties with an AV of $25,000 or less
- Own no more than one property
- Benefit: A one-time top-up of $1,000 or $1,500 will be provided to the individual’s CPF Retirement or Special Account, depending on their age and CPF savings.
This bonus directly targets those most at risk of falling short of sufficient retirement income.
3. One-Time MediSave Bonus
Recognizing that medical expenses can be a significant concern for seniors, the Majulah Package includes a MediSave Bonus.
- Eligibility: All Singaporeans born in 1973 or earlier
- Benefit: A one-time top-up of up to $2,000 to the MediSave Account, based on the individual’s age, property ownership, and AV of their residence.
This measure is aimed at enhancing healthcare affordability and helping seniors manage out-of-pocket expenses, especially for chronic care and hospitalization.
A Look at the Impact
The government estimates that a 55-year-old lower-income worker who qualifies for all three components of the Majulah Package could receive up to $12,000 in additional CPF savings over 10 years. This includes the recurring ESB and the one-time RSB and MediSave Bonus.
These measures collectively aim to improve financial security and peace of mind for older Singaporeans approaching or already in retirement.
The Majulah Package reflects our enduring commitment to uplift all Singaporeans, especially our seniors who have contributed to nation-building,” said DPM Wong in his Budget address. “We are taking proactive steps to ensure no one is left behind.
How to Check Eligibility
Eligible Singaporeans will be notified by the CPF Board. Alternatively, individuals can check their eligibility and benefit amounts via the official Majulah Package website.
For more details on CPF balances, contribution rules, or the Basic Retirement Sum, visit the CPF Board website.
Public Reception and Next Steps
While the announcement has been welcomed by many advocacy groups and senior citizens, some have called for greater inclusivity for seniors who fall outside property value thresholds or have intermittent work histories.
Still, financial experts say the Majulah Package is a significant step forward in strengthening Singapore’s social safety net, particularly for vulnerable aging populations.
Implementation of the package will roll out progressively, with top-ups expected to be credited starting in late 2025.
Conclusion
With the Majulah Package, Singapore is signaling a firm intent to support its seniors in both retirement and healthcare. As the nation continues to age, such policies are crucial to building a society where aging is met with dignity, security, and opportunity.
