The Singapore government is constantly making efforts to make its senior citizens financially self-reliant. With increasing age, the sources of income of the elderly usually stop and they have to depend on others for their needs. In such a situation, the pension provided by the government proves to be very helpful. In this episode, the Singapore government has started a new scheme from the year 2025, under which senior citizens will be given a monthly pension of S$ 1250 (Singaporean Dollar) every month.
This scheme is being run under the Central Provident Fund (CPF) system, in which eligible citizens will be given pension through two options – CPF LIFE and Retirement Sum Scheme (RSS).
In this article, we will give complete information about this scheme, such as what is its purpose, who is eligible, how to claim pension and how its benefits can be availed.
What Is the Objective of the Scheme?
The main objective of this scheme is to provide financial security to the elderly living in Singapore. As a person grows older, his earning capacity decreases, but expenses – such as medicines, nutrition, care, etc. – increase. In addition, many elderly people live alone and need some support to survive.
The government believes that if the elderly are given a fixed monthly pension, they can live an independent and dignified life. This assistance of S$1250 per month will make them self-reliant and not have to depend on anyone.
What Is the CPF LIFE Plan?
The Central Provident Fund Lifelong Income for Elderly (CPF LIFE) is a lifetime annuity plan that aims to provide monthly pension to citizens throughout their lives.
Features of CPF LIFE:
- The pension can be started at any time between the ages of 65 and 70.
- The later the pension is started, the higher the monthly pension will be. If someone starts a pension at the age of 70, they will receive about 7 percent more money.
- There are two plans available:
- Standard Plan: A fixed amount is paid every month.
- Escalating Plan: The pension increases by 2 percent every year.
- If you have a balance of more than $60,000 in your CPF retirement account, you are automatically enrolled in this scheme.
For example, if Mr Lee has $70,000 in his CPF account, he does not need to register himself. All he needs to do is select the ‘Start My Payout’ option and the payout will start.
What Is the Retirement Sum Scheme (RSS)?
If a person has low CPF savings or is not eligible for CPF LIFE, he has the option of the Retirement Sum Scheme. This is a limited-term plan.
Features of RSS:
- This scheme makes monthly payments for about 20 years or until the balance is exhausted.
- It starts at age 65.
- It does not have a lifetime pension feature, meaning it does not offer as much long-term security as CPF LIFE.
- This scheme is specifically for those with low CPF savings.
For example, if Mrs Tan only has $40,000 in her account, she will receive a pension under RSS, but it will not last for life.
Eligibility – Who Can Avail the S$1250 Pension?
There are some important conditions that must be met to avail of this scheme:
- The applicant must be at least 65 years old.
- Those who have deferred pension up to age 70 can receive additional pension amounts.
- It is mandatory to have a minimum balance in the CPF account.
- The applicant must be a permanent resident of Singapore.
- Also, their name must be in the government’s social security database.
- After checking the eligibility, the applicant must select the ‘Start My Payout’ option from the Singpass portal.
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How to Claim This Scheme – Know the Complete Claim Process
If you also want to take advantage of the S$1250 monthly pension under this scheme, then follow the steps below:
Step 1 – Check Eligibility
First of all, make sure that you are 65 years of age or older and your CPF account is active.
Step 2 – Check CPF Balance
It is also important that your CPF retirement account has the minimum required amount.
Step 3 – Login to the Singpass Portal
Go to the Singpass app or website and log in with your ID and password.
Step 4 – Select the Start My Payout Option
After logging in, go to the ‘My Request’ section.
From there, click on ‘Retirement’ and then select ‘Start My Payout’ option.
Step 5 – Choose Pension Plan
You will see two schemes – CPF LIFE and RSS.
Select one of the schemes according to your savings and needs.
Step 6 – Choose the Date of Start of Payment
If you want, you can start the pension anytime between the age of 65 to 70 years.
Step 7 – Fill in Bank Details and Submit
Enter your bank information so that the pension goes directly to your account.
After this, click on the ‘Submit’ button.
When Will You Get the Benefit of the Scheme?
This pension will be provided by the CPF Board from June 2025. For this, eligible citizens will be informed in advance through the portal and reminders will also be sent if necessary.
Conclusion – It Is Not Just a Scheme, It Is a Step Towards Self-Reliance
Singapore S$1250 Monthly Pension Boost 2025 is a great initiative of the Singapore government, which is a step towards giving a self-reliant and respectable life to its elderly citizens.
All the rules related to this scheme are simple and its process is completely digital, which makes it easy to get pension. This initiative of the government not only provides financial assistance to the elderly but also gives them a respectable status in the society.
