Budget 2026: CPF top-ups for seniors with lower savings; higher CPF contributions for senior workers
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Older Singaporeans with lower CPF retirement savings will receive a one-time top-up of up to $1,500 in December 2026.
ST PHOTO: ONG WEE JIN
SINGAPORE - Retirement support for seniors will be strengthened through a one-time Central Provident Fund (CPF) top-up of up to $1,500 for those who have not met their Basic Retirement Sum (BRS), and increasing CPF contribution rates for senior workers.
In his Budget speech on Feb 12
PM Wong added that with longer lifespans, retirement adequacy is a major concern for many Singaporeans, and the Government’s aim is clear: “Singaporeans who work and contribute to CPF consistently should be able to meet their basic retirement needs with confidence”.
He announced a CPF top-up of up to $1,500 for eligible Singaporeans born in 1976 or earlier who have lower CPF retirement savings.
The top-up will be credited in December 2026 into the individual’s CPF Retirement Account (RA). If the RA has not been created, the top-up will be credited into the Special Account.
The top-up eligibility criteria as at Dec 31, 2025 are:
(a) CPF retirement savings below the BRS of $110,200;
(b) not owning more than one property; and
(c) living in a residence where the annual value (AV) of the property is not more than $31,000.
“Those with lower balances will receive larger top-ups, so that support is targeted at where it is most needed”, said PM Wong.
For those who live in a residence with an AV of not more than $21,000, they will receive the maximum top-up of $1,500 if their CPF retirement savings are less than $60,000; otherwise, they will receive a $1,000 top-up.
For those residing in a property with an AV of more than $21,000 but not exceeding $31,000, their top-up will be $500.
Employees to contribute more to CPF savings; half of employers’ increased contributions covered by Government
To help older workers build up their retirement savings in their later working years, the Government will also proceed with its plans to increase the contribution rates for senior workers in 2027.
From Jan 1, 2027, the CPF contribution rates for workers aged above 55 to 60 will increase by 1.5 percentage points – employees’ contribution will increase from 18 per cent to 19 per cent, while the employers’ contribution will rise from 16 per cent to 16.5 per cent.
For workers aged above 60 to 65, both the employees’ and employers’ contribution rates will each increase 0.5 percentage point to 13 per cent.
The Government will also continue to provide the CPF Transition Offset to employers, which will cover half of the increase in the employer contributions for 2027.
This will help mitigate the rise in business costs for the employers, and will be automatically provided to the employers without requiring them to apply for it.
The Government announced in 2019 that CPF contribution rates would be raised gradually for Singaporean and permanent resident workers aged from above 55 to 70 years.
When fully implemented by around 2030, those aged above 55 to 60 will have the same CPF contribution rates as younger workers.
Beyond the latest measures, the Government has also enhanced the CPF system over the years to strengthen retirement support for seniors, such as introducing the Silver Support Scheme to uplift seniors Majulah Package to give additional assurance to “Young Seniors”
$400 million top-up for CareShield Life premium support
PM Wong also announced a $400 million top-up to the Long-Term Care Support Fund, which was first set up to provide premium support for the CareShield Life Scheme and other financial support, should one develop severe disability.
The latest top-up will be used to fund additional subsidies to cushion the impact of higher premiums, given recent enhancements to this national long-term care insurance scheme
From 2026 to 2030, the growth rate of CareShield Life payouts has doubled from the previous 2 per cent a year, to 4 per cent a year.
This means that Singapore residents with severe disabilities who make a claim will receive a higher payout. For instance, if a resident makes a claim in 2030, the monthly payout would be $806, instead of $731 if the growth rate had been maintained.
With the enhancements, premiums will rise. There is a one-step increase in premiums in 2026, after which it will grow at 4 per cent per annum.
Premiums can be fully paid using MediSave. The Government has also committed to providing an additional $570 million in premium support over these five years to help policyholders offset the increases.
Read next: 11 highlights from PM Wong’s speech
