The Central Provident Fund (CPF) Fundamental Retirement Sum (BRS) shall be elevated by 3.5 per cent per yr for the following 5 cohorts of CPF members turning 55 from 2023 to 2027.
That is to offer them with greater month-to-month CPF payouts of their retirement years, given the rising requirements of residing, Finance Minister Lawrence Wong mentioned throughout Singapore Finances 2022.
The fundamental retirement sum for these turning 55 this yr is S$96,000. With a 3.5 per cent enhance per yr, it implies that the sum shall be S$99,400 in 2023, S$102,900 in 2024, S$106,500 in 2025, S$110,200 in 2026, and S$114,100 in 2027.
There is no such thing as a requirement for members to prime up their CPF if they’re unable to put aside the BRS, Mr Wong mentioned.
As for many who do put aside the BRS after they flip 55 in 2027, they are going to get payouts of near S$1,000 a month after they flip 65, Mr Wong mentioned. These payouts will proceed for the remainder of their lives.
The BRS gives CPF members with month-to-month payouts to cowl their primary residing bills throughout retirement.
Employers to get CPF offsets
Employer and worker CPF contribution charges elevated for staff aged 55 to 70 this yr and employers have been given a one-year CPF Transition Offset equal to half the rise in employer contributions.
Mr Wong mentioned that the following step of the rise will happen in 2023 and employers will obtain an analogous offset.
Featured Picture Credit score: The On-line Citizen
