Following the new changes to CPF’s Retirement Sum Scheme (RSS), 60,000 Singaporeans will receive a larger monthly payout — but over a shorter period of time.
Earlier this week, the Minister of Manpower announced the maximum RSS payout age to be reduced from 95 to 90. This change was made taking into account the feedback from Singaporeans that payouts lasting up to age 95 is too long. This new rule will apply to all RSS members who are currently receiving payouts from 1 January 2020 and those who turn 65 from 1 July 2020 onward.
In addition to this, further details of the new Contribute As You Earn (CAYE) scheme that encourages freelancers to make regular Medisave contributions were also announced. Starting early 2020, freelancers who work directly with Government and private agencies will be given the option to have a percentage of their fees automatically directed into their Medisave accounts.
What is CPF RSS?
One of two retirement schemes by the Central Provident Fund (CPF), RSS provides members with monthly payouts during their retirement years. The amount received and length of payment will depend on the amount available in your Retirement Account (RA), and when you decide to start receiving these payments. Currently, the minimum age to start receiving RSS payouts is 65, with the option to delay until the age of 70.
How many CPF retirement schemes are there?
CPF offers two retirement schemes, namely CPF Lifelong Income For The Elderly (LIFE) and RSS. If you are born in or after May 1961, the amount saved in your RA will determine which retirement scheme fall under.
CPF LIFE - More than $60,000 in RA (6 months prior to turning 65)
RSS - Less than $60,000 in RA (6 months prior to turning 65)
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