The Central Provident Fund (CPF) Basic Retirement Sum (BRS) will be increased by 3.5 per cent per year for the next five cohorts of CPF members turning 55 from 2023 to 2027.
This is to provide them with higher monthly CPF payouts in their retirement years, given the rising standards of living, Finance Minister Lawrence Wong said during Singapore Budget 2022.
The basic retirement sum for those turning 55 this year is S$96,000. With a 3.5 per cent increase per year, it means that the sum will 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 requirement for members to top up their CPF if they are unable to set aside the BRS, Mr Wong said.
As for those who do set aside the BRS when they turn 55 in 2027, they will get payouts of close to S$1,000 a month when they turn 65, Mr Wong said. These payouts will continue for the rest of their lives.
The BRS provides CPF members with monthly payouts to cover their basic living expenses during retirement.
Employers to get CPF offsets
Employer and employee CPF contribution rates increased for workers aged 55 to 70 this year and employers have been given a one-year CPF Transition Offset equivalent to half the increase in employer contributions.
Mr Wong said that the next step of the increase will take place in 2023 and employers will receive a similar offset.
Featured Image Credit: The Online Citizen
