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Written Answer to PQ on Retirement Account Savings for Retirement Sum Scheme Payouts lasting 20 years

NOTICE PAPER NO. 2528 OF 2024 FOR THE SITTING ON OR AFTER 06 FEBRUARY 2024
QUESTION NO. 5386 FOR WRITTEN ANSWER

MP: Mr Leong Mun Wai

To ask the Minister for Manpower what is the Retirement Account (RA) savings threshold that determines whether payouts under the Retirement Sum Scheme will last for 20 years from the payout eligibility age or for a shorter period.

Answer:

1. There is no single Retirement Account (RA) savings amount which would determine whether payouts would last for 20 years after the Payout Eligibility Age (PEA) under the Retirement Sum Scheme (RSS) because there are many factors which would affect the payouts. These factors include whether and when members receive further inflows to their RA after the PEA. Members on the RSS can check their payout duration and quantum by logging into their individual CPF account.

2. Members turning 65 in 2023 who had set aside the Basic Retirement Sum will be automatically included on CPF LIFE1 and receive lifelong payouts2. To help more Singaporeans attain basic retirement adequacy, we are introducing the Majulah Package and will be enhancing the Workfare Income Supplement, Silver Support Scheme and the Matched Retirement Savings Scheme. More details will be announced at Budget and the Committee of Supply debates 2024.

 

 

FOOTNOTE

  1. Members will automatically be included on CPF LIFE if they (i) are a Singapore Citizen or Permanent Resident; (ii) are born in 1958 or after; and (iii) have at least $60,000 in their retirement savings when they start their monthly payouts.
  2. The Basic Retirement Sum (BRS) for members born on or after 1 July 1958 until 30 Jun 1959 is $74,000 at age 55. Under the CPF LIFE Standard Plan, a male from this cohort who set aside the BRS at age 55 would receive lifelong payouts of around $680 per month from age 65.