Central Provident Fund (CPF) monthly payouts have increased with each successive cohort and are set to keep going up for future cohorts, according to a report by the CPF Board. Median payouts have gone up by 25 per cent from 2019 to 2021. A CPF member who turned 65 in 2019 received monthly payouts of $460, compared with the $580 that a member who turned 65 last year now gets. For those who chose to start receiving payouts at age 70, the median payout among these cohorts also grew from $610 in 2019 to $760 in 2021. This is thanks to income growth, increased labour force participation and overall improvements to the CPF system.
Plans are also afoot to boost Singaporeans’ savings and retirement adequacy. For example, CPF contribution rates for those aged 55 to 70 will increase gradually to help them earn more and save more even after turning 55. The retirement and re-employment ages for Singapore workers will also be progressively raised to 65 and 70 by 2030 to support those who wish to continue working. The Matched Retirement Savings Scheme launched last year will help seniors who have not reached their Basic Retirement Sum to build their retirement savings through a dollar-for-dollar matching grant up to a capped amount. The Workfare Income Supplement Scheme will be enhanced to boost payouts for all recipients and be extended to younger workers from 30 years old.