A one-off Goods and Services Tax (GST) voucher will be introduced to help lower- and middle-income seniors and retirees cope with higher living costs.

This Seniors' Bonus cash payout will effectively double the GST Voucher they usually receive, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam in his Budget speech on Friday.

Singaporeans aged 55 and older this year will benefit if their assessable income for 2013 was $26,000 or lower. If the annual value of their homes is less than $13,000, the Seniors' Bonus will be $250.

The bonus will be $100 if the annual value of their home is between $13,001 and $21,000.

About 675,000 Singaporeans aged 55 and above will benefit at a cost to the Government of $170 million.

For more news and analysis on Singapore Budget 2014, click here for ST's Big Story coverage.