Breakdown by Gender and Current Employment Status of Singaporeans Eligible for Budget 2020 Matched Retirement Savings Scheme and Average and Median Balances in CPF Accounts
Ministry of ManpowerSpeakers
Summary
This question concerns the demographic and financial profile of the 435,000 Singaporeans eligible for the Budget 2020 Matched Retirement Savings Scheme (MRSS). Assoc Prof Walter Theseira requested a breakdown by gender, employment status, and CPF balances, which Minister for Manpower Josephine Teo provided across active, inactive, and self-employed categories. The Minister noted that men generally maintain higher average and median balances than women, while inactive contributors are predominantly female caregivers and self-employed persons are mostly male. The scheme targets lower-to-middle income seniors and those with lower CPF balances to enhance their retirement adequacy through matched savings. Eligible members can increase their Retirement Account balances by over $6,000 over five years, resulting in higher monthly CPF LIFE payouts.
Transcript
4 Assoc Prof Walter Theseira asked the Minister for Manpower in respect of the estimated 435,000 Singaporeans eligible for the Budget 2020 Matched Retirement Savings Scheme (a) what is the breakdown by (i) gender and (ii) current employment status; and (b) what are the average and median balances in their CPF accounts, also broken down by gender and current employment status.
Mrs Josephine Teo: The Matched Retirement Savings Scheme, or MRSS, helps Singaporeans aged 55 to 70 who have yet to meet the CPF Basic Retirement Sum to save more for retirement. This can include lower- to middle-income seniors, and in particular, caregivers and self-employed persons (SEPs) who typically have less in their CPF.
By fully utilising the Matched Retirement Savings Scheme, members can increase their Retirement Account balances by more than $6,000 over five years, which can result in up to an $80 increase in their CPF LIFE payout per month.
About half of those eligible for MRSS are active CPF contributors, with slightly more women than men among them. On average, eligible and active CPF contributors who are women have $108,000 in their Ordinary, Special and Retirement Accounts combined, including amounts withdrawn under the Investment, Education and Housing schemes. At the median, it is $90,000. Among eligible active CPF contributors who are men, the average and median balances are $146,000 and $133,000 respectively.
About one-third of those eligible for MRSS are inactive CPF contributors (likely to be full-time care-givers), with 2.5 times as many women as men among them. On average, eligible but inactive CPF contributors who are women have $60,000 in their Ordinary, Special and Retirement Accounts combined, including amounts withdrawn under the Investment, Education and Housing schemes. At the median, it is $39,000. Among eligible inactive CPF contributors who are men, the average and median balances are $96,000 and $63,000 respectively.
About 20% of those eligible for MRSS are SEPs who have lower CPF contribution obligation. For comparison, 8% to 10% of our workforce are SEPs. In this group, there are twice as many men as women. On average, eligible SEP contributors who are women have $72,000 in their Ordinary, Special and Retirement Accounts combined, including amounts withdrawn under the Investment, Education and Housing schemes. At the median, it is $48,000. Among eligible SEP contributors who are men, the average and median balances are $113,000 and $88,000 respectively.