As Singaporeans approach retirement, many are concerned about how they will manage daily expenses, healthcare costs, and financial stability. Recognising these challenges, the government has introduced the Majulah Package 2025. This new initiative is designed to offer significant assistance to over 1.6 million Singaporeans born in or before 1973. Through targeted bonuses, this program seeks to ease the financial burden of retirement and reward those who have contributed to the nation’s growth.
A Comprehensive Program Tailored to Senior Needs
The Majulah Package 2025 is not just another benefit scheme. With a commitment of $8.2 billion, it aims to provide meaningful support to individuals aged in their 50s and early 60s. Whether still employed, retired, or engaged in part-time or platform work, eligible individuals will benefit from a combination of income supplements and medical savings top-ups, all credited automatically to their CPF accounts.
Annual CPF Bonus Through the Earn and Save Scheme
A core element of the Majulah Package is the Earn and Save Bonus (ESB), designed to supplement the CPF accounts of lower- to middle-income seniors who continue to work. This bonus ranges from $400 to $1,000 annually, depending on the individual’s income bracket. Those earning between $500 and $6,000 a month, and living in homes with an Annual Value (AV) not exceeding $31,000, qualify. Caregivers, individuals with disabilities, or ComCare beneficiaries may also receive a $400 yearly bonus, even if they earn less than $500 a month.
One-Time Retirement Savings Top-Up to Bridge Gaps
The Retirement Savings Bonus (RSB) provides additional support for those who have accumulated modest CPF savings. Eligible seniors with less than $99,400 in CPF savings as of the end of 2022 and living in homes with AVs of $25,000 or less will receive a one-time bonus of $1,000 or $1,500. This top-up will be credited either to the Retirement Account or Special Account, depending on the individual’s age group, to help improve their future CPF payouts.
Health Support Enhanced with MediSave Bonus
In a further effort to alleviate concerns surrounding healthcare expenses, the MediSave Bonus under the Majulah Package will credit up to $2,000 into the CPF MediSave accounts of all eligible citizens born in 1973 or earlier. This measure ensures that seniors have sufficient funds reserved for health-related needs, especially as medical expenses rise with age. A $500 enhancement introduced in October 2024 has already increased this bonus, reflecting the government’s ongoing commitment to healthcare affordability.
Hassle-Free Disbursement System for Greater Accessibility
The Majulah Package eliminates the need for complicated application processes. All qualifying individuals will receive their benefits automatically. Employed and platform workers will have their income assessed by relevant authorities, while self-employed individuals must ensure they declare their income to IRAS to be considered. The Earn and Save Bonus will be deposited into CPF accounts annually starting March 2025.
Securing Retirement with Dignity and Confidence
What makes the Majulah Package stand out is not just its financial value but its intent. By offering direct financial top-ups, it acknowledges the years of contribution made by older Singaporeans to the country’s progress. It provides a cushion that allows them to transition into retirement with more confidence and less anxiety about basic living costs or healthcare planning.
A Lifeline in Uncertain Times for Seniors
As living costs and future uncertainties grow, the Majulah Package offers timely reassurance. It is designed not just to provide financial help but to instil a sense of dignity and respect for those who have worked hard throughout their lives. In doing so, it reinforces the message that Singapore’s senior citizens remain a vital and valued part of the community, deserving of care, recognition, and stability in their golden years.