The Basic Retirement Sum (BRS) will be increased from 2025 onwards by the Singapore government. It is one of the periodic adjustments to ensure that the retiree has sufficient savings to subsist basic living expenses during retirement. The increase is necessitated by a rise in costs of living and aims to help Singaporeans live a secure and enhancing retirement.
New Basic Retirement Sum for 2025
With effect from January 2025, the Basic Retirement Sum increase will be $105,500 from $99,400 in 2024. This implies that persons attaining 55 in 2025 will have to keep at least S\$105,500 in their CPF Retirement Account to receive monies as monthly remuneration during their retirement years. In other words, this amount should cover the basics and other needs for food, utilities, and healthcare. The Full Retirement Sum and Enhanced Retirement Sum will also increase, proportionally reflecting the same adjustment.
Why the Increase Is Necessary
The adjustment to the Basic Retirement Sum is made on a periodic basis to keep pace with inflation and rising cost of living. With increasing human lifespan and costs of healthcare, such adjustment helps ensure that retirees will never outlive their savings. The increase motivates workers to continue to contribute towards their CPF accounts and actively plan for their financial future.
What This Means for CPF Members
This increase in Basic Retirement Sum would apply to CPF savings for Singaporeans turning 55 from 2025 onwards. Those unable to meet the new sum would still be able to withdraw part of their CPF savings in cash under the prevailing rules, and receive proportionally smaller monthly payouts. Members who top up or continue working past 55 can better secure their retirement needs.
The Rise in Basic Retirement Sum in 2025 hence forms part of a wider attempt to ensure that, despite increasing costs, retirees are cushioned with a reasonable standard of living. Singaporean citizens are urged to assess their CPF statements and plan accordingly for the upcoming requirements.