Earlier this week, Singapore's Manpower Minister Josephine Teo was asked if there will be a review of the CPF Basic Retirement Sum (BRS) requirements, in light of the economic crisis' impact on CPF contributions.
In a written response, she noted that the government is undertaking a series of initiatives to help Singapore residents through this time, noting that the priority now is to "help Singaporeans stay employed to continue receiving CPF contributions."
This, she added, is in line with the National Wages Council's guidelines, which strongly encourage employers to retain employees through cost-saving measures, retraining and redeployment to new jobs within the company."
"The Government has also provided targeted assistance to save jobs and livelihoods such as through the Jobs Support Scheme, which provided salary support to help companies to retain employees.
"We have also ramped up job redesign reskilling and redeployment programmes as part of the SGUnited Jobs and Skills Package."
Apart from the above, Minister Teo stated that the COVID-19 Support Grant and Self-Employed Person Income Relief Scheme have also supported Singaporeans with their short-term cash flow, while lower income workers and households are also receiving additional support through the Workfare Special Payment and grocery vouchers.
The Housing Development Board and the banks are also providing mortgage relief to flat owners who had faced difficulties paying monthly instalments in cash or through their CPF.
Thus, Minister Teo noted, the Government will continue to review the BRS, "keeping in mind the long-term retirement needs of Singaporeans."
Details on the CPF Basic Retirement Sum
As highlighted by Minister Teo, the BRS provides members with monthly payouts that cover basic expenses throughout their retirement years. CPF members aged 55 and above can withdraw up to S$5,000 from their CPF savings, or more if they have set aside their full
BRS, with property pledge. For members turning 65 from 2023, they can also withdraw up to 20% of their Retirement Account savings upon reaching age 65. Members who have less than their BRS are not required to top up their CPF accounts in cash.
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