Here are 3 key announcements PM Lee made at the National Day Rally that will affect millennials

The retirement age, CPF, and school fees will be affected.
The Straits Times

In his National Day Rally speech on Sunday (Aug 18), Singapore’s Prime Minister Lee Hsien Loong announced a slew of changes to education and retirement policies.

National Day Rally 2019

#FBLIVE: PM Lee Hsien Loong delivering his English speech at the National Day Rally 2019 at ITE College Central.If you are experiencing trouble with the FB live stream, you can watch the speech live on the PMO YouTube channel instead: https://youtu.be/FEDNTGUu0oI#ndrsg

Posted by Lee Hsien Loong on Sunday, 18 August 2019

Business Insider rounded up three key announcements that will affect millennials:


#1: By 2030, Singapore’s retirement age will be 65 years old

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The Straits Times

Singapore’s official retirement age will be gradually raised to 65, PM Lee said. It will be increased from the current 62 years to 63 years in 2022, and then to 65 by 2030.

The re-employment age limit will also be gradually raised to 70. It will be increased from the current 67 years to 68 years in 2022, and then to 70 by 2030.

The changes are meant to allow older employees to be employed longer in order to be financially independent, the PM said.

In addition, CPF contribution rates will be gradually raised for workers aged 55 and above. This will start as soon as 2021 and take about 10 years to fully implement.

PM Lee did not provide details on the specific increase in contributions, but said CPF contributions for workers were currently tapering down after 55, and the Government was looking to increase this age to 60.

He emphasised that there was no change to the CPF withdrawal age (55 for withdrawals and 65 for payouts).


#2: Eligible uni and poly students will pay less for school – especially medicine undergrads

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The Straits Times

School fees for full-time general degree students at the Singapore Institute of Technology (SIT) and the Singapore University of Social Sciences (SUSS) will drop from S$8,000 to S$7,500 per year, the PM said.

Government bursaries will also start covering 75 per cent of degree fees (up from 50 per cent currently), and 95 per cent of diploma fees (up from 80 per cent currently).

This means that from the next academic year, a university student on the bursary only pays about S$2,000 in annual fees, while a polytechnic student will pay just S$150.

PM Lee added that the Government will give larger bursaries to those studying medicine, as it is the most expensive out of all the university courses.

When combined with university bursaries, the fees paid by eligible medicine students are expected to drop from as much as S$35,000 to no more than S$5,000.


#3: Eligible parents will pay less for pre-school

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The Straits Times

The income ceiling for pre-school subsidies will be raised from S$7,500 to S$12,000, PM Lee said. This means some 30,000 more households will qualify for additional subsidies.

In the medium term, the Government is working toward reducing the cost of full day pre-school to about S$300.

The number of Government-supported pre-school places will also increase from about 50 per cent to 80 per cent, as it is looking to offer an affordable, government-funded option for all Singaporeans, much like housing and healthcare.


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