Thursday 7 January 2021

Too Young and Too Old for MRSS


Ai yeah! 

I'm too young and mom is too old to qualify for:

Matched Retirement Savings Scheme


Aren't I the one who abhor doing voluntary contributions to CPF?

Hello, its only $3,000 lah. 

If lockup $3,000 can get $3,000 extra for "free", why not?

I wouldn't say no to "free" money!

At my age, this "free" $3,000 will come mighty handy for future medical expenses.

Too bad mom don't qualify though...

You know what's interesting?

The article says 53% of CPF members qualify for this scheme.

I'll pause and let you sink in.

Do you see what I see?


  1. Ehh I'm same situation as you!
    Cannot 'benefit' from this scheme.

    Eligibility : 55 to 70 (both inclusive)

    1. Kevin,

      I just missed it by a nose!

      I'll be 54 years young this year...

      Oh well :)

    2. Missed the first round but can still do it for the subsequent 4 years!? OK bah haha.

    3. Kevin,

      Opps! Silly me!

      I don't belong to the 53% who qualify afterall!!!

      I was too focused on the earn below $4K and HDB flat part...

      I forgot my CPF above the BRS limit...

      Which makes the 53% figure even more startling!

  2. Replies
    1. CW,

      Probably! And that would include stay-at-home dads and "eat soft rice" men too.

      If not, its even more depressing...

      Imagine working your whole life, in your 50s or 60s you earn below $4K, plus CPF can't even meet the BRS limit...

      The saving grace is at least they have a HDB flat!

      So if willing to downgrade or rent out spare rooms, still can survive. Especially if they have no children.

      And that's probably the biggest irony of CPF.

      Low income earners hate CPF; I need that money now!

      High income earners love CPF; take my money oredi!

  3. Hi Smol,

    Besides housewives and househusbands, think a large group of self-employed too ;)

    People like hawkers, taxi drivers, independent contractors etc who could get away with reporting reasonably low-enough incomes & only contributing the minimum cpf to renew their license.

    My former aircon technician lives in a fully paid condo & has almost kosong cpf. But strongly doubt he'd go for this MRSS even if he could. 🤣

    Otherwise for salaried employees with 20 or more years contribution, it's pretty hard NOT to meet the BRS especially with property pledge.

    1. Spur,

      Hey! You are on point here about the self-employed ;)

      In Greece, there's huge under reporting of incomes as its in their cultural DNA to avoid paying taxes. So everything is in cash!

      They tell me it all started when they were ruled by the Ottomans...

      Another irony of CPF!

      Fixed salaried do voluntary contributions to AVOID paying taxes.

      Self-employed do the bare minimum to EVADE paying taxes.


  4. Hi SMOL,

    My mum was quite excited seeing that piece of news. Then I told her not to take it as it decreases liquidity. There are better uses of that cash elsewhere (such as paying down her housing loan).

    1. Unintelligent Nerd,

      Chotto matte!

      Normally, I would agree with you as I'm not a fan of locking up liquidity "just" for 4-5% interests...

      Especially when we can get better returns OUTSIDE of CPF for those who walk the path of EARN MORE.

      But this is only for $3K...

      And its a 100% return!!! Even I find it hard to beat!!!

      By paying down your mom's housing loan, you save at best 3-6% bank loan's interest?

      Prefer this over a 100% return on the $3K???

      Of course you crypto warriors are spoilt.

      I can see the logic:

      Why settle for a 2 bagger return applying for MRSS when the same $3K invested into Bitcoins can get us a 10 bagger after 5 years ;)


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