Singapore’s CPF system ensures that working Singaporeans and Permanent Residents set aside a portion of their monthly earnings, forming the foundation for monthly payouts during retirement. A monthly payout is provided through CPF LIFE.
To provide a reference baseline, the government sets (and regularly reviews) milestone levels for our CPF savings: the Basic Retirement Sum (BRS), Full Retirement Sum (2 × BRS), and Enhanced Retirement Sum (4 × BRS). For those turning 55 in 2025, the Full Retirement Sum is $205,800.
Read Also: Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55
Unfortunately, there is a segment of seniors who might still fall way short of even the BRS at the time of their retirement, which means they would be drawing on very modest payouts each month, which are grossly inadequate for even basic sustenance. According to the Ministry of Manpower, which administers CPF, about 435,000 seniors fall into this category.
To encourage and support seniors in building up their CPF balances and thus their retirement adequacy, the government announced in Budget 2020 the introduction of the Matched Retirement Savings Scheme (MRSS), which took effect in 2021.
Here’s what you need to know about the scheme and to make the most of the government contribution matching and prevailing income tax deductions.
What Is The Matched Retirement Savings Scheme (MRSS)?
Under the scheme, the government provides dollar-for-dollar matching to eligible seniors for voluntary CPF cash top-ups under the CPF Retirement Sum Topping-Up (RTSU) scheme, up to an annual limit of $600 (before 1 January 2025). From 1 January 2025, the dollar-for-dollar matching has increased to $2,000 annually, with a $20,000 cap over an eligible member’s lifetime.
There is no need to apply for the Matched Retirement Savings Scheme (MRSS). Your eligibility is automatically assessed every year. You are eligible if you meet the criteria.
– Singapore Citizen aged 55 and above
– CPF Retirement Account savings less than the prevailing Basic Retirement Sum ($106,500 for those turning 55 in 2025)
– Average monthly income of not more than $4,000
– Annual Value (AV) of residence being not more than $21,000
– Do not own more than one property
MRSS is an incentive on top of the RTSU, however, even though RTSU contributions can be made in cash or transfers from your own Ordinary Account, MRSS matching is only applicable for cash top-ups.
Cash top-ups can be made in a lump sum or in smaller portions throughout the year, including via GIRO. At the end of each calendar year, the total topped-up amount will be computed, and the matching grant (capped at $2,000 annually) will be credited by the first quarter of the following year.
MRSS grant payouts are given to seniors, so it does not matter who makes the cash top-ups – it can be seniors themselves, their loved ones, or even their employer.
Eligible Seniors Will Be Notified At The Start Of The Year
As the eligibility for MRSS is assessed every year, you may be able to change your eligibility if your income changes or if you change your residence. Do note that the AV is based on your place of residence (as reflected on your NRIC), this means that if you move from your HDB to your child’s condominium (and change your NRIC address), you may no longer be eligible.
You can check your eligibility on CPF’s website.
From 1 January 2026, the Government will expand the MRSS to include eligible persons with disabilities of all ages, to allow them to start building up their retirement savings earlier. Eligible persons with disabilities below the age of 55 would receive the MRSS matching grant on cash top-ups to their CPF Special Account (SA), and benefit from higher CPF savings and monthly payouts in retirement.
Read Also: Singapore Budget 2025: 5 Major Announcements That Will Benefit The Average Singaporean
The post Matched Retirement Savings Scheme: How Seniors Can Get Dollar-For-Dollar Matching To Boost Their CPF Balances appeared first on DollarsAndSense.sg.
