Matched Retirement Savings Scheme (MRSS) – $3,000 Extra for Your CPF?

Introduced in Budget 2020, the Matched Retirement Savings Scheme (MRSS) has rolled out starting from this year, 2021, and will last until 2025. If you are an eligible person between 55 to 70, or have parents who are in that age range and are eligible, you can top up your/your parent’s retirement account and get dollar-for-dollar contribution up to $600 each year.
Eligibility
Age | 55 to 70 (both inclusive) |
Retirement Account (RA) Savings | Less than the current Basic Retirement Sum (BRS) The prevailing BRS for 2021 is $93,000 |
Average Monthly Income | Not more than $4,000 (covers a majority of senior workers) |
Annual Value of Residence | Not more than $13,000 (covers most HDB flats) |
Property Ownership | Own not more than one property |
Eligible persons will be informed at the start of each year, and they can also check their eligibility at the CPF website.

Get S$300 with Citi SMRT Card – excellent easy-to-use 5% cashback card with no monthly cap!
Subscribe to the Telegram for more great deals and updates.
Benefits and analysis
If one tops up at least $600 a year for 5 years, the total amount the government would match is $3,000. As a Retirement Sum Topping Up (RTSU) top-up, there is also a dollar-for-dollar tax relief of up to $7,000 per year.
This scheme is targetted at seniors who have not met their CPF Basic Retirement Sum, and I have my reservations whether such individuals would be able or willing to give up cash liquidity for more CPF Life payouts in future. The tax savings for them will also be relatively low since they need to earn less than $4,000 a month to qualify.
If you’re a working adult with aged parents, however, particularly if you have a higher income and your parents depend on you for retirement, I think you may find this compelling enough to start topping up your parents’ CPF for the following reasons:
- topping up your parents’ CPF builds up their CPF Life payouts in future, reducing your future financial burden of supporting them;
- the matched contribution from the government and the relatively good interest rate in their CPF further amplifies the amount you put in;
- you enjoy tax relief on the amounts topped up (subject to your recipient’s eligibility and your personal income tax relief cap).
CPF uses an example of someone who is 55 now in 2021, and puts aside $600 a year for the next 5 years. With the government matching the contributions, plus CPF interest, the $3,000 he/she has set aside would now be $8,300, or $45 more in monthly payouts for life, by age 65.
Are you going to top up for yourself/your parents?
I immediately thought that this was a no-brainer for my parents, but unfortunately (or to be more optimistic – fortunately), they aren’t eligible owing to the annual value of their residence.
If you have eligible parents, or are eligible yourself, will you take advantage of MRSS? Let me know in the comments or Telegram group!
Keep up to date on the best cashback/mile cards, financial products, attractive deals, and more tips to maximise your financial wellbeing by subscribing to my Telegram channel.
Subscribe to the channel, then join the group chat. You would often benefit from the tips shared exclusively in the group chat!
Disclaimer: I may receive an affiliate/referral fee when you sign up for services/products on this site, and such fees keep the site running. I would only recommend services/products I would personally use or recommend to my own friends and family, but I do not provide any warranty or guarantee for the quality of these services/products. Thank you for supporting my site!
Please exercise due diligence when signing up for any service/product as I will not be liable for any personal loss, financial or otherwise. Content published here are my sole views and personal opnion, and none of the information here constitutes personal financial advice nor represents the views of my employer(s).