National Day Rally 2014: Annual retirement bonus for elderly low-income Singaporeans

SINGAPORE - Prime Minister Lee Hsien Loong in his National Day Rally speech said more must be done to help about 10 to 20 per cent of elderly Singaporeans who do not have enough savings in their Central Provident Fund (CPF) accounts and lack other means of financial support.

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Mr Lee said that the CPF scheme works well for most Singaporeans, but improvements can still be made, as it is not flexible enough to help the lower-income population.

For about 10 - 20 per cent of the population who do not accumulate enough savings in their CPF during their working lives, and do not have a HDB flat or family support to fall back on, the Government will supplement payouts from their own CPF savings with bonus payments from the Government.

This is similar to how the Government supplements the wages of low-income workers with Workfare Income Supplement Scheme.

For low income elderly Singaporeans, the Government will introduce a new scheme called Silver Support, which will pay a bonus each year, starting from age 65, on top of other Government and community support they already receive.

More details will be announced at the Budget next year.