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CPF Basic Retirement Sum to rise by 3.5% for next 5 cohorts turning 55 from 2023-2027
SINGAPORE — The Central Provident Fund (CPF) Basic Retirement Sum (BRS) will rise by 3.5 per cent for the next five cohorts turning 55 from 2023 to 2027, Finance Minister Lawrence Wong said on Friday (18 February).
Delivering the Singapore Budget 2022 Statement, Wong said that there is no requirement for members to top up their CPF if they are unable to set aside their BRS.
“Those who set aside the BRS when they turn 55 in 2027 will receive payouts of close to $1,000 per month when they are 65, and these payouts will continue for the rest of their lives. This will give them greater assurance for their basic retirement needs.”
The government will continue to increase the employer and employee CPF contribution rates for workers aged 55 to 70, following the recommendations of the Tripartite Workgroup on Older Workers.
The first increase took effect this year, while the government has been providing employers with a one-year CPF Transition Offset equal to half of the increase in employer CPF contributions.
“We will continue with the next step of the increase in 2023, and provide employers with a similar offset,” Wong said.
As such, workers aged 55 to 70 will see a total increase of three to four percentage points in their CPF contribution rates over the next two years.
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