The Majulah Package 2025 is a government initiative in Singapore designed to support seniors financially and ensure better retirement security. Announced during Budget 2024, the package targets approximately 1.6 million Singaporeans aged 50 and above. It includes three main components: the Earn and Save Bonus (ESB), Retirement Savings Bonus (RSB), and MediSave Bonus (MSB).
The Retirement Savings Bonus focuses on seniors whose CPF (Central Provident Fund) balances fall below the Basic Retirement Sum (BRS). This one-time top-up strengthens retirement funds and enhances monthly CPF LIFE payouts, helping seniors maintain a stable and secure retirement.
Eligibility Requirements for the RSB
The RSB is automatically credited to eligible seniors who meet the following conditions:
- Must be a Singapore Citizen born in 1973 or earlier.
- CPF retirement savings as of 31 December 2023 are below the Basic Retirement Sum of S$99,400.
- Annual Value (AV) of their residence is S$25,000 or below.
- Own no more than one property in Singapore.
The government uses existing databases to identify eligible citizens, so no application is needed. This ensures the bonus reaches those who need it most, particularly seniors with modest savings and assets.
Structure of the One-Time Top-Up
The Retirement Savings Bonus is tiered to support those with lower CPF balances:
- CPF savings below S$60,000: One-time top-up of S$1,500
- CPF savings between S$60,000 and S$99,400: One-time top-up of S$1,000
For citizens aged 55 and above, the RSB considers the combined balance of the Retirement Account (RA) and CPF LIFE. For those below 55, it includes the Ordinary Account (OA) and Special Account (SA).
Payment Timeline and Disbursement Method
The RSB is automatically credited to eligible CPF accounts. Seniors aged 55 and above receive it in their Retirement Account (RA), while younger recipients receive it in their Special Account (SA). The first disbursement occurred in late 2024, and all recipients were notified by CPF. The bonus remains in the CPF system, earning interest between 4% and 6% per year depending on the account type.
Integration with Other Majulah Package Benefits
The Majulah Package also includes:
- Earn and Save Bonus (ESB): Encourages working seniors to continue employment. Payments range from S$400 to S$1,000 annually, based on income and CPF contributions. First payments scheduled for March 2025.
- MediSave Bonus (MSB): A one-time CPF MediSave top-up between S$750 and S$1,500, helping seniors cover healthcare and insurance expenses.
| Component | Benefit Type | Payment Range (S$) | Disbursement Frequency |
|---|---|---|---|
| Earn and Save Bonus (ESB) | CPF top-up for working seniors | 400 – 1,000 | Annually (from Mar 2025) |
| Retirement Savings Bonus (RSB) | CPF top-up for low-savings seniors | 1,000 – 1,500 | One-time (from Dec 2024) |
| MediSave Bonus (MSB) | CPF MediSave top-up | 750 – 1,500 | One-time (varies by age) |
These benefits together improve retirement security, support healthcare costs, and encourage sustainable savings among seniors.
Expected Beneficiaries and Impact
Approximately 1.6 million Singaporeans will benefit from the Majulah Package. Many seniors with CPF balances below the BRS threshold will receive the RSB, helping reduce inequalities in retirement savings. The government has allocated over S$7 billion to the package, reflecting its strong commitment to seniors’ financial well-being.
FAQs
What is the purpose of the Retirement Savings Bonus?
The RSB provides a one-time CPF top-up to strengthen retirement funds for seniors with CPF balances below the Basic Retirement Sum and increase future CPF LIFE payouts.
How do I know if I am eligible for the RSB?
Eligibility is determined automatically by the CPF Board based on age, CPF savings, property ownership, and residence value. Eligible citizens receive notifications directly.
Can the RSB amount be withdrawn in cash?
No. The RSB is credited to the CPF account and remains in the system to grow with interest, ensuring retirement security.
When are the RSB payments made?
The first disbursement occurred in December 2024. Future payments will be credited to newly eligible citizens as determined by CPF assessments.
How does the RSB relate to the Earn and Save Bonus (ESB)?
The RSB is a one-time top-up focused on retirement adequacy, while the ESB is an annual incentive for working seniors who make regular CPF contributions. Both are part of the Majulah Package.
Conclusion
The Majulah Package 2025, particularly the S$1,500 Retirement Savings Bonus, is a significant step to support Singaporean seniors with low retirement savings. By automatically crediting CPF accounts, the government ensures equitable access to retirement funds, improves financial security, and strengthens future CPF LIFE payouts. Combined with the ESB and MSB, this package reinforces Singapore’s commitment to seniors’ financial independence and well-being.