Singapore Budget 2024: All you need to know if you are – middle aged

The Singapore Budget 2024 isn’t just about numbers. You have spent quite some time navigating the twists and turns of your career, financial planning, property ownership, and personal growth. There are more now, as we dive into the measures in this latest budget that may directly impact your lives. From vouchers to CPF changes, we’ve got the details you need.

The TFC team will be doing a deeper dive into some of these topics over the coming weeks, so stay tuned!

TL;DR?

This budget supports you. Whether you’re planning and counting down to retirement, fine-tuning your property strategy, or choosing to upskill, there’s something in it for you. You are nearly there, so embrace this round of changes and support.

Vouchers Galore:

We all love to get free money, and this budget doesn’t disappoint. Here’s what’s in store:

Majulah package:

This is specially for those born before 1973. With more details from the package first announced at last year’s national day rally, you will get:

• Earn and Save Bonus: If your average monthly income falls between $500 and $6,000, your property’s Annual Value (AV) is below $25,000, and you own no more than one property, you get an annual bonus ranging from $400 to $1,000, credited straight to your CPF Special Account (SA) or CPF Retirement Account (RA). It’s like finding treasure in your backyard—except it’s in your CPF.
• Retirement Savings Bonus: If your CPF balance as of end-2022is below the 2023 Basic Retirement Sum (BRS), and your property AV remains below $25,000, prepare for a one-time bonus of $1,000 to $1,500, credited to your RA or SA, to boost your retirement.
• CPF Medisave Boost: Depending on your age, property’s AV, and whether you own more than one property, you’ll receive a one-off bonus of $750 to $1,500 for your CPF Medisave. It’s like a health insurance upgrade with a side of financial magic.

CDC Vouchers:

We have gone through a few rounds of this now, but eligible families will receive up to $600 of these vouchers to offset various expenses.

Cost of Living Payment:

Because of the challenging economic climate and rising cost of living, if you do not own more than one property and your assessable income is below $100,000, you’ll receive a payment ranging from $200 to $400.

Income Tax Rebate:

Everyone working receives a 50% personal income tax rebate, capped at $200 to lighten their tax burden.

U-Save Rebates:

HDB households can benefit from up to $950 in U-Save rebates.

S&CC Rebate:

HDB households will also enjoy up to 4 months of Service and Conservancy Charge (S&CC) rebates.

NSMen Bonus:

All past and present NSMen will receive $200.

CPF Changes and Challenges

Unfortunately, your best laid plans about how to maximise CPF, might have to change. Here’s what’s in store:

No More SA:

Starting in 2025, the SA bids farewell to everyone above 55.

Say Goodbye to CPF Shielding:

For the savvy, you used to be able to transfer more from your Ordinary Account (OA) to RA so as to keep more amounts in the SA for its higher interest rates. With no more SA, the CPF shielding “hack” is over. From 2025, SA to RA is capped at the Full Retirement Sum (FRS), with the remainder going to OA (which can still top up your RA). It is neater, but reduces interest earned.

RA gets Bigger:

No more shielding, but fear not—the RA gets a boost. The Enhanced Retirement Sum (ERS) increases to 4 times the BRS. You can now put more into your RA, and get a higher monthly payout.

Contribution Rates Up:

As planned, contribution rates are climbing by 1.5%. More money coming in, to hit the bigger ERS.

CPF Matching Twist:

The Government used to match voluntary CPF top ups 1-to-1, up to $600 per year. This has now moved to a lifetime cap of $20,000. 33 times the previous matching cap is great but unfortunately, tax relief for this top-up has also been removed, and no more double dipping.

Property

Property owners, listen up:

Wealth Tax Calibration:

If you’ve been complaining to your MP about the last increase in property tax, they listed. There will be relief. Property taxes are going down as annual value bands increase. The government’s recalibrating this wealth tax, and lessening the impact on you.

Cash Flow Concerns?:

However, if even with the reduced tax above you face cashflow issues in paying property tax, IRAS will now offer a 24-month interest free installment plan, so you can buy some time before paying.

ABSD Remission Extended:

Single Singaporeans aged 55 and above can now also benefit from ABSD remission if you sell your old property within 6 months of buying a new one. It’s clear, you can downgrade if property tax really got to you.

Retraining And Resilience

Unemployed, underemployed, or seeking new skills? Here’s your toolkit:

SkillsFuture Top-Up:

You will get $4,000 of SkillsFuture credits. This will only be for selected training programs, including part-time and full-time diplomas, post-diploma courses, and undergraduate programs, so most likely not $4,000 of barista courses..

Diploma Pursuit:

If you want to pursue another full-time diploma at polytechnics, ITE, or arts institutions, you can, at subsidised rates. It’s like you are 18 again.

Monthly Training Allowance:

Enroll in selected full-time courses and receive 50% of your average monthly pay over the past year, capped at $3,000 per month. The government will literally be paying you to learn. 

Get a quick catch up on Singapore Budget 2024’s benefit-list and impact on: 
1. Single Individuals under 45
2. Married Singaporeans with 2 kids
3. Retirees

TFC’s Alternative Budget Debate

If you want more from the Budget, we are reading between the policy lines to dissect the economic focus, social impact, and effectiveness of Singapore’s budget playbook, as well as uncover the anxiety of different groups affected by the announcement. We share our thoughts on what the hidden messaging is from the Budget announcement and which class is affected. 

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