Budget 2025 at a Glance: 10 Ways It Could Affect Your Wallet

Prime Minister and Finance Minister Lawrence Wong has shared that Singapore’s 2025 Budget will be a Budget for all Singaporeans. 

Last year, we saw the announcement of the CPF SA closure, amongst other measures announced as part of Budget 2024. 

Some of the key measures that were announced as part of Budget 2025 include more CDC vouchers, climate vouchers, a SG60 package, as well as LifeSG credits.   

Let us take a look at some of the key announcements made today as part of his Budget 2025 speech and evaluate how they may potentially impact you.

10 ways Singapore Budget 2024 could affect you

#1 – More CDC vouchers

Who is it for: All Singaporean households

Singaporean households will receive an additional S$800 in CDC vouchers. 

The first S$500 will come in May this year, while the other S$300 will be disbursed in January 2026.

This is in addition to the S$600 in CDC vouchers announced last year.

#2 – U-save rebates

Who is it for: HDB households

To help HDB households with the increase in their utility bills, one-off U-Save rebates of between S$440 to S$760 will be disbursed in April and October 2025.

The rebates will cover about six months of utilities bills for those living in one- and two-room flats, and three months for those in three- and four-room flats.

#3 – SG60 vouchers of up to S$800

Who is it for: All Singaporeans

To mark Singapore’s 60th anniversary, all Singaporeans aged between 21 and 59 this year will get a $600 handout in SG60 vouchers, while seniors aged 60 and above will get $800.

The vouchers can be used at all businesses that accept CDC vouchers, with half to be spent at participating supermarkets, and the remainder at participating heartland merchants and hawker stalls.

The vouchers can be claimed in July this year.  

In addition, all Singaporean babies born this year will receive a SG60 baby gift. 

#4 – 60% Personal Income Tax Rebate for Year of Assessment capped at S$200

Who is it for: Tax-paying individuals

Besides the SG60 vouchers, tax-paying resident individuals will also get a 60 per cent rebate on their personal income tax, capped at $200, for income earned in 2024.

This will mostly benefit middle-income workers.

#5 – SG60 S$100 ActiveSG Credit Top-Up and S$100 Culture Pass credits 

All ActiveSG members will receive a $100 SG60 ActiveSG Credit Top-Up in June 2025. 

In addition, all Singaporeans aged 18 and above will receive $100 SG Culture Pass credits in September 2025.  These new credits can be used to buy tickets for eligible local performances, exhibitions and experiences such as learning tours and participatory workshops. The credits will be valid till end-2028.

#6  – Up to S$400 in Climate vouchers 

Who is it for: All Singaporeans

Families living in private properties will get S$400 in Climate Vouchers.

HDB households will receive an additional S$100 vouchers, on top of the $300 in vouchers previously distributed in 2024.

The vouchers can be used purchase energy- and water-efficient appliances and fittings, such as air-conditioners, washing machines and refrigerators. 

Eligible items include an air-conditioner labelled with five ticks and a washing machine with four ticks.

The vouchers are valid until Dec 31, 2027, and can be used at more than 150 participating retailers across 500 outlets.

#7 - $500 in credits for each Singaporean child aged 0 to 12 years

Who is it for: Children aged up to 20

Every Singaporean child 12 years and below will receive S$500 in LifeSG credits.

These credits can be used on household expenses such as groceries and utilities.

Children aged one to 12 in 2025 will receive them in July, while credits for those born in 2025 will be disbursed in April 2026.

Older children above 12 years will receive $500 top-ups to Edusave or Post-Secondary Education (PSEA) accounts. 

Students aged 13 to 16 will receive the top-up in their Edusave account, while those aged 17 to 20 will receive it through their PSEA.

The top-ups, which will be disbursed in July, support education-related expenses such as approved school fees and enrichment programmes.

#8 – Increase in CPF contribution rates for those aged 55 to 65

Who is it for: Workers aged 55 to 65

The Central Provident Fund (CPF) contribution rates for those aged above 55 to 65 will increase by 1.5 percentage points in 2026.

The CPF contribution rates for workers aged above 55 to 60 will increase to 34% on 1 January 2026.

The CPF contributions rates for workers aged above 60 to 65 will increase to 25%. 

The respective increases in CPF contribution will be fully allocated to the CPF retirement account.

When the increases are fully implemented, those aged above 55 to 60 will have the same CPF contribution rates as younger workers. 

Read also: CPF contribution changes from 1 January: How will they affect you 

#9 - Matched voluntary MediSave top-ups for eligible lower-income seniors 

Who is it for: Eligible lower-income Singaporeans aged 55 to 70

For eligible seniors aged 55 to 70, the Government will match every dollar of voluntary cash top-ups to their MediSave accounts, capped at $1,000 a year. 

The scheme will run for the next five years, and about 184,000 CPF members are expected to be eligible.

#10 – Support for large families 

Who is it for: Families with three or more children 

For each third and subsequent child born from Tuesday (Feb 18), Singaporean parents will receive up to $16,000 more in financial support under a new scheme for large families.

This will comprise of:

• A S$5,000 Large Family MediSave grant
• A S$5,000 increase in the First Step grant in their Child Development Accounts, bringing the total grant to S$10,000
• S$1,000 each year in LifeSG credits between the ages of one and six, or a total of S$6,000 over six years

What would Beansprout do?

While the vouchers to offset living expenses are helpful, taking steps to build our long-term financial security remains essential.

Recent research suggests that a conservative retirement lifestyle may require at least S$550,000 in savings. We’ve explored practical ways to strengthen our retirement nest egg and ensure financial stability in the years ahead.

For those approaching retirement, we also covered key considerations following the closure of the CPF Special Account and alternative options to manage your savings effectively.

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