CHANGES TO CPF
With the new Central Provident Fund (CPF) measures introduced in this year's Budget, CPF members will be able to grow their retirement savings further.
From January, the CPF salary ceiling will increase from $5,000 to $6,000, as proposed by NTUC and the CPF Advisory Panel, giving middle-income Singaporeans will have more CPF savings during their working years.
At least 544,000 CPF members will benefit from this.
From January next year, an additional 1 per cent interest will be applied to the first $30,000 of CPF savings for those aged 55 and above. This is on top of the existing 1 per cent extra interest on the first $60,000 of savings.
RAISING CONTRIBUTION RATES
In the past, CPF contribution rates for older workers were lowered to enhance their employability.
Now, workers aged 50 to 55 will see their CPF contribution rates go up by two percentage points next year - one from the employer and one from the employee.
With this increase, their contribution rates will be on par with the younger workers.
Contribution rates will also go up for citizens between 55 to 65. (See chart below.)
The increase in employer contributions will go to the Special Account, while the increase in employee contributions will go to the Ordinary Account, and can be used to service housing mortgages.