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"The improvement in the BRS attainment rate for CPF members is the result of many years of enhancements to the CPF system, and our aim is to assure Singaporeans that as long as they work and contribute consistently to CPF, they will be able to meet their basic retirement needs," the Ministry shared.
Singapore’s Ministry of Manpower (MOM) has projected that by 2027, eight in 10 active CPF members would have set aside their cohort Basic Retirement Sum (BRS) by age 55, up from the current five in 10.
This announcement was made in response to a series of parliamentary queries regarding Singaporeans’ preparedness for retirement. The queries included:
- MOM’s assessment of Singaporeans’ ability to retire gracefully and with dignity;
- Whether the Government would consider using recent budget surpluses for a one-time top-up of S$24,000 to the CPF Retirement Account (RA) for Singaporeans aged 55 and above, and for future retirees, and
- Whether the Government has explored increasing the annual interest rate on RA to 6%.
MOM attributed the improved BRS attainment rate to years of enhancements in the CPF system. Over the past decade, the Ministry has assured Singaporeans that as long as they work and contribute consistently to CPF, they will be able to meet their basic retirement needs.
Beyond the recent Forward Singapore exercise aimed at strengthening retirement support, initiatives such as the enhanced Workfare Income Supplement scheme, the Matched Retirement Savings Scheme, and the Silver Support Scheme (set to be enhanced in 2025) have been introduced to support lower-income and vulnerable seniors. MOM emphasised that "the Government provides targeted support for their retirement needs" for members who require additional assistance.
One such initiative is the S$9bn Majulah Package announced in 2024, which provides citizens born in 1973 or earlier with an extra boost for retirement and healthcare savings. As part of this package, the Retirement Savings Bonus of up to S$1,500 was credited to about 800,000 eligible seniors’ CPF accounts in December 2024.
On the topic of CPF interest rates, MOM explained: "CPF interest rates are pegged to returns of investments of comparable risk and duration in the market, with floor rates of 2.5% for the Ordinary Account and 4% for the Special, MediSave, and Retirement Accounts to protect members from any downside risks." The Ministry affirmed that for members aged 55 and above, the Government currently pays 6% interest on the first S$30,000 and 5% on the next S$30,000 of combined CPF balances to help boost retirement savings.
Additionally, MOM noted that "members who wish to take on some risks for potentially higher returns may also choose to invest their savings under the CPF Investment Scheme."
Reaffirming its commitment to strengthening retirement adequacy, MOM stated: "We will regularly review our CPF policies as part of our ongoing efforts to strengthen the retirement adequacy of Singaporeans, to ensure that Singaporeans can continue to build up their retirement savings, with the Government providing targeted support especially to those who need it."
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