Since March 2018, PayNow has been available to CPF members as a form of withdrawal of the money from the CPF accounts for members who are aged 55 and above. This PayNow account must be NRIC-linked, meaning you have to link your NRIC to your bank account from any of the PayNow participating banks.
The turnaround time using PayNow for withdrawal is 1 day but 5 working days if you choose to withdraw via Interbank GIRO.
From 1 August 2018, Singaporeans residing in Singapore who are aged 21 and above in 2018, whose assessable income for Year of Assessment 2017 is not more than $28,000, will receive up to $300 in cash, to be deposited in the designated bank account or receive the money by cheque. However, you must not own more than one property and the annual value of your home as at 31 December 2017 must not exceed $21,000. You will get either $300 if the annual value of your home is up to $13,000, or $150 if the annual value of your home is from $13,001 to $21,000.
Also, if you are Singaporeans residing in Singapore who are aged 65 and above in 2018, do not own more than one property and the annual value of your home as at 31 December 2017 does not exceed $21,000, you will also receive Medisave top-up of between $150 to $450 on 1 August 2018. The details are as follows :-
| Age in 2018 | Annual Value of Home as at 1 December 2017 | |
| Up to $13,000 | $13,001 to $21,000 | |
| 65–74 | $250 | $150 |
| 75–84 | $350 | $250 |
| 85 and above | $450 | $350 |
You can view your eligibility on both GST vouchers and Medisave top-up amount and update your preferred bank account via https://www.gstvoucher.gov.sg using your Singpass.
Home Protection Scheme (HPS) is an term-reducing mortgage insurance managed by CPFB that will help HPS members to pay off the housing loan in the event of death, terminal illness or total permanent disability. It insures member up to 65 years old or until the loan is paid up, whichever is earlier.
510,000 CPF members will pay less for their Home Protection Scheme (HPS) premium from 1st July 2018 onwards, when their insurance is due for renewal. This will benefit 95% of the HPS members, with three quarters of them getting reduction of at least 10% from their existing premiums. The last reduction in HPS premium was done in 2012.
Just to recap, CPF members have to be insured under HPS if they are using CPF savings to pay for the housing loan for their HDB flats. However, they can choose to buy mortgage insurance from private insurer as long as they can fulfill the criteria mandated by CPFB. Visit HPS website to find out more.
From 2020, all Singaporeans who are aged 30 to 40 will be automatically enrolled into the new CareShield Life, regardless of his health condition. It is a universal coverage, and so if he is disabled when he joins scheme, he will make a one-time premium payment, and will start collecting the payouts immediately. Those who are on the current ElderShield can opt to join the new CareShield Life, more information will be released by the government later.
To recap, these two schemes start payout once a person is severely disabled, that is, cannot perform 3 out of 6 daily activities of bathing, feeding, dressing, transferring, mobility and toileting.
The key differences between CareShield Life and Eldershield at a glance are as follows:-
| CareShield LIfe | ElderShield 400 |
| $600 monthly payout for life, from year 2020 | $400 monthly payout for 6 years |
| Monthly payout increases from year 2020, as long as you are still paying premium | $400 monthly payout is fixed |
| Premium payment from age 40 to 67 | Premium payment from age 40 to 65 |
| Premium increases over the years till age 67 | Premium is fixed at the entry age |
Though the premium will increase over the years, medisave can be used fully to pay the premium for CareShield Life.
The CareShield Life is definitely a great improvement in term of payout amount and the coverage years. It also factors in inflation cost over the years. For the first 5 years, the government has decided to increase the payout at the rate of 2% per annum. The monthly payout will increase as you pay your higher premium each year, until you make a claim and stop paying premium or when you finish paying your premium at age 67.
More information can be found at https://www.moh.gov.sg/content/dam/moh_web/careshieldlife/index.html
The Utilities-Save (U-Save) rebate, which Singaporean households will receive as GST vouchers in April 2018, will help to offset their utilities bills. These vouchers will be disbursed every 3 months.
Households in one-and two-room Housing Board flats will receive $95, those in three-room flats will get $85, those in four-room flats will receive $75, those in five-room flats, $65, and those in executive or multi-generation flats, $55. However, if any one of the members own more than one property, then the household will not be eligible for this rebate.
When the carbon tax t is implemented from 2019, eligible households will receive additional $20 a year for three years, from 2019 to 2021. The additional rebate amount will help to cover the expected increase in electricity and gas expenses for households.
Total annual amount of rebate from 2018 to 2021
| HDB Flat Type | Annual Rebate for 2018 | Annual Rebate for 2019–2021 |
| 1-room & 2-room | $380 | $400 |
| 3-room | $340 | $360 |
| 4-room | $300 | $320 |
| 5-room | $260 | $280 |
| Executive/Multi-Generation | $220 | $240 |
Currently, CPF members can only transfer savings from their CPF accounts to their parents or grandparents after setting aside the full retirement sum. However, members can soon do the transfer after setting aside the basic retirement sum if they have property pledges or charges to meet the full retirement sum, after the CPF Amendment Bill is passed in parliament soon.
Note that for those turning 55 in 2017, the full retirement sum is S$166,000, so the basic retirement sum is half at S$83,000.
1.57 million eligible Singaporeans will receive the GST Vouchers and Medisave Top-up starting from July 2017. They can login to www.gstvoucher.gov.sg to view the actual cash and medisave amount and also to update the payment mode with their Singpass.
For GST vouchers, about 1.37 million will receive up to $500 cash, up to $300 in August and up to $200 in November 2017.
For Medisave top-up, about 450,000 Singaporeans aged 65 years and above will receive up to $450 in August 2017.
In addition, about 520,000 Singaporeans who are born on or before 31 December 1959 (58 years and above in 2017) and do not receive Pioneer Generation benefits will receive a Medisave top-up of up to $200 in August 2017 and 2018. Pioneers, meanwhile, will receive additional MediSave top-up of $200-$800 in July 2017.
Do note that those in the 21 to 55 age group with mobile numbers updated with SingPass will only receive SMS notifications (without hardcopy letters). Those aged 56 and above with mobile numbers updated with SingPass will receive both SMSes and notification letters. You can opt for SMS notifications in future, by updating their mobile numbers with SingPass at www.singpass.gov.sg.
Household Benefits
U-Save is given every 3 months to help offset utilities bills directly. From July 2017, a permanent increase of $40-$120 will be given to about 880,000 eligible Singaporean HDB households. These households will also be given one-off 1.5 to 3.5 months of Service and Conservancy rebate in 2017, depending on their HDB flat type.
Source : http://www.mof.gov.sg/news-reader/articleid/1834/parentid/59/year/2017?category=Press%20Release
CPF Advisory Panel has just released their last 2 recommendations on the CPF enhancements.
New CPF Life option with escalating payout
In future, CPF members will have 3 options to choose for their CPF Life, which is an annuity scheme administered by CPF board to give monthly payout to retirees from age 65 in his lifetime. The first two options are CPF Life Standard and CPF Life Basic with level payout throughout, with the prior giving higher monthly payout and less to the beneficiaries when member passes on and there is any money left; and latter one giving lower monthly payout and more to the beneficiaries when member passes on and there is any money left.
The new option is one with escalating payout set at 2% increase a year, but the initial monthly payout will start at about 20% below in monthly payout compared to CPF Life Standard plan, assuming same premium amount and payout age.
The new option is good for those who will get level payout from their private retirement plans, as the monthly payout will increase over the years from their CPF Life scheme. It is also good for those who may want to continue working beyond age 65 and thus have income and do not require higher payout in the initial years but more later when they cannot work at a more advanced age.
Lifetime Retirement Investment Scheme
Besides the current CPF Investment Scheme in which CPF members can invest in the unit trusts offered by the private investment firms and also the Investment-linked plan offered by insurers, CPF members can now look forward to a simpler future Lifetime Retirement Investment Scheme (LRIS) that the government will work on to offer to CPF members later.
LRIS will offer a small number of well-diversified passively managed funds, which are simpler for CPF members to choose from, and one which do not need active rebalancing, likely a market life-cycle investment approach. CPF member can liquidate their LRIS anytime up to the age 70, the latest date that CPF Life payout can begin, so that they are not forced to do so at age 65 (CPF Payout Eligibility Age) during the market downturn.
This new CPF Investment option may be good for those who want to grow their CPF OA fund more for their retirement. I personally feel that the 4%-5% interest guaranteed in our CPF Special Account is best to be left there for diversification and no risk with high interest.
About 1.54 million Singaporeans will receive letters from Ministry of Finance informing them of their eligibility for GST vouchers and other budget benefits by 1 July 2016.
For individual Singaporean aged 21 and above whose assessable income for Year of Assessment 2015 is less than $26,000 and who does not own more than one property, you will get $500 on 1 August 2016 if the annual value if home is $13,000 and below; or $250 if the annual value of home is from $13,001 to $21,000.
For Pioneer Singaporean, they will also get up to $800 top-up per year to their medisave based on the criteria below.
| Pioneer Generation Medisave Top-up | ||
| Born in | Age in 2016 | Amount of Medisave top-up per year |
| 1945 — 1949 | 67 — 71 | $200 |
| 1940 — 1944 | 72 — 76 | $400 |
| 1935 – 1939 | 77 — 81 | $600 |
| 1934 or earlier | >= 82 | $800 |
For Non-Pioneers, they will also get up to $200 top-up per year to their medisave till 2018 based on the criteria below.
| 5-Year Medisave Top-up (2014 – 2018) | ||
| Annual Value of Home as at 21 Dec 2015 | Up to $13,000 | Above $13,000 or owns more than property |
| Singapore Citizens born in 1959 and earlier who are not Pioneers | $200/year | $100/year |
| One-off additional medisave top-up for those age 65 and above in 2016 and who does not own more than one property. | For those age 65 to 74, to get additional $250.
For those age 75 to 84, to get additional $350.
For those age 85 and above, to get additional $450.
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For those age 65 to 74, to get additional $150.
For those age 75 to 84, to get additional $250.
For those age 85 and above, to get additional $350.
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For households staying in HDB flats, government will give up to $260 deduction in utilities bills in equal instalments over 4 months in July 2016, October 2016, January 2017 and April 2017. Each household will also get up to 3 months of S&CC rebate.
| Household benefits for 2016 | |||||
| Flat Type | 1 And 2-Room | 3-Room | 4-Room | 5-Room | Executive/Mulit-Generation |
| GSTV – U-Save | $260 | $240 | $220 | $200 | $180 |
| S&CC rebate (months) | 3 | 2 | 2 | 1.5 | 1 |
Reference : https://www.gstvoucher.gov.sg
Currently, an SRS member can withdraw up to $40,000 per year from his SRS account tax-free on or after reaching the prescribed retirement age, assuming that he has no other taxable income. Over the maximum withdrawal period of 10 years, he can withdraw up to $400,000 tax-free.
However, if an SRS member passes away before completing his SRS withdrawals or made a full withdrawal on the grounds of terminal illness, he would not be able to enjoy the full benefit from spreading out his SRS withdrawals over a 10-year period. Hence, from year of assessment 2016, a tax exemption of up to $400,000 would be granted for SRS funds deemed withdrawn upon an SRS member’s demise or a withdrawn in full on the grounds of terminal illness.
Next, from July 2015, SRS members will be able to apply to their SRS operators to withdraw an SRS investment by transferring the investment out of their SRS accounts (e.g. into their personal Central Depository (CDP) account), without having to liquidate their SRS investments. This is only applicable for the following types of withdrawals, which qualify for the 50% tax concession:
All other withdrawals from an SRS account, including premature withdrawals, must be made in cash.