National Day Rally 2023: What you need to know about Majulah package for young seniors

What happened?

At the National Day Rally 2023, Prime Minister Lee Hsien Loong announced a S$7 billion Majulah Package to help lower and middle income Singaporeans aged 50 and above this year meet their retirement needs. 

If you are missed out on the Pioneer Generation Package and Merdeka Generation Package earlier, let us find out more about the Majulah Package and if might be eligible for it. 

Who’s eligible for Majulah Package?

Singaporeans born in 1973 or earlier, or “young seniors” in their 50s and early 60s are eligible for the Majulah Package.

This includes those who are either about to retire or who may have recently retired.

The package is expected to benefit about 1.4 million older Singaporeans, or more than eight in 10 Singapore citizens aged 50 and above in 2023.

What is the Majulah Package?

The Majulah Package has three components: an annual Earn and Save bonus for those who are in the workforce, as well as one-time retirement savings bonus and Medisave bonus.

Component 1 – Earn and Save bonus

The Earn and Save bonus will provide lower- and middle-income workers with a CPF bonus of between $400 and $1,000 yearly, as long as they remain in the workforce, whether full-time or part-time. 

More details about the eligibility criteria will be announced in 2024. Some of the factors that will be considered on whether an individual is eligible may include as income, annual value of residence, number of properties owned and CPF savings.

This bonus will be credited into the recipient’s CPF account, on top of the usual employer and employee contributions.

Component 2 – Retirement Savings bonus

There will be a one-time CPF bonus of between $1,000 and $1,500 for those whose CPF balances have not reached the CPF Basic Retirement Sum (BRS)

The Retirement Savings Bonus will also cover those who are not working, as well as housewives who might have low CPF balances.

The Basic Retirement Sum (BRS) is the minimum amount a CPF member has to set aside at age 55 for retirement needs. 

The CPF BRS for those turning 55 this year is $99,400. The BRS will increase by 3.5% per year until 2027. This means that for those turning 55 in 2027, the BRS will be $114,100.

Component 3 – MediSave Bonus

There will be a one-time top-up of between $500 and $1,000 to help young seniors cope with higher healthcare costs

What would Beansprout do? 

Apart from relying on the Majulah Package, we should all start planning for our retirement even if we are not reaching retirement age anytime soon.

Check out Beansprout’s guide to how you can retire well, including tips to maximise your CPF funds. 

For example, you can consider investing your CPF OA funds in the Singapore T-bill to earn a higher interest. 

Join the Beansprout Telegram group or Facebook group to get more insights on how to retire well.