By Lorna Tan
Head of financial planning literacy, DBS Bank
If you’ve only got a minute:
- The government continues to help Singaporeans cushion higher costs of living with a series of LifeSG credits, U-Save rebates, and CDC vouchers.
- The proposed CPF changes such as CPF top-ups for eligible members and the new investment scheme will go a long way to boost retirement adequacy.
While Budget 2026 aims to make Singapore firms more resilient in the face of global uncertainty and ride the AI wave, it also offers support for all segments of the society.
PM Wong, who is also Singapore’s Minister for Finance, addressed cost-of-living concerns and announced measures to support families and seniors, as well as strengthening the workforce through skills development.
Here are 6 key takeaways from Budget 2026, along with practical financial tips for you to consider.
1. Increasing investment options for CPF savings
CPF members will soon have the option of putting their CPF savings in a new, voluntary lifecycle investment scheme when it launches in 2028. Underlining the scheme is a glidepath investment approach where members take on more risk with greater exposure to equities when they are younger, and their investments are automatically rebalanced towards safer assets as they approach retirement.
The government will work with commercial product providers to develop such products for CPF members and is prepared to provide some time-limited support to kick-start the scheme. Fees will be kept low, and the government will select 2 to 3 providers to keep choices simple for members.
The new scheme will complement the existing CPF Investment Scheme (CPFIS) by catering to long-term investors – such as 20 years to ride out market cycles – who are willing to take some risk but may have less expertise in navigating the CPFIS offerings or prefer not to actively manage their investments. All-in fees will be capped to minimise costs.
It is interesting to note that DBS Bank already offers a glidepath investing solution utilising cash savings. In 2024, DBS, in collaboration with JP Morgan Asset Management, launched DBS Retirement digiPortfolio which automatically calibrates its asset allocation to an individual’s life stage and retirement timeline and allows investors to automate their drawdowns based on their retirement income needs.
Tip: The focus on a glidepath approach will encourage dollar-cost averaging and a long-term investing view to stay in the market to ride out downturns and reap the benefits of compounding.
Before investing in the CPF new investment scheme, consider if you have long-term commitments such as paying a monthly home loan. If so, it is prudent to keep a higher balance in your CPF Ordinary Account so that you will not be caught with any cashflow problems. Understand your risk appetite, objectives and whether you can stay invested for the long term to ride out any market downturns.
Read more: CPF’s new glidepath investing approach
Find out more about: Retirement digiPortfolio
2. Boosting retirement adequacy
With longer lifespans, retirement adequacy is a major concern for many Singaporeans. To help Singaporeans meet their basic retirement needs with confidence, those aged 50 and above with CPF retirement savings below the Basic Retirement Sum (S$110,200 in 2026) will receive a CPF top-up of up to S$1,500. Those with lower balances will receive larger top-ups so support is targeted where it is most needed.
Another move targeted at senior workers will see the government proceed with the next step of planned CPF contribution rate increases in 2027. The government will also continue to provide employers with the CPF Transition Offset to cover half of the increase in employer contributions for next year.
3. Tackling cost of living via payouts, rebates and vouchers
Eligible Singaporeans can look forward to another Cost-of-Living Special payment this year. Those earning up to S$100,000 in assessable income and who do not own more than 1 property will receive S$200 to S$400 in cash in September 2026. This will benefit some 2.4 million Singaporeans to help them cope with living expenses. The actual quantum will be determined by their income earned in 2024 and the annual value of their place of residence.
More U-Save rebates are also incoming. Eligible HDB households will receive up to S$570 in utilities rebates this year, which is 1.5 times the regular amount of U-Save rebates. This will be disbursed in April, July October, and January 2027. The rebates will be credited to eligible households’ utilities accounts with provider SP Services. It will cover about 5 months of utilities expenses for those living in 1- and 2-room flats, and about 2 months of such expenses for those living in 3- and 4-room flats. The government said this will cushion the impact of higher utilities bills due to an increase in the carbon tax from 2026.
The familiar CDC vouchers - to the tune of S$500 – will also be handed out to all Singaporean households in January 2027. Like previous rounds, half can be used at participating supermarkets while the other half can be used at participating merchants and hawkers. The vouchers will expire on 31 December 2027.
Tip: While the continued government support for living expenses is beneficial, it's crucial to use these funds wisely. This is an opportune time to review your spending habits, identify areas of overspending, and address any financial shortfalls.
Utilise digibank's digital financial advisory tool digiWealth to gain clarity on your financial situation and close money gaps. The tool will help you make informed decisions to optimise your spend, strengthen your emergency reserves through insurance, and build a secure financial future through smart investment choices.
Read more: Financial spring cleaning to kickstart 2026
Find out more about: digiWealth
4. Supporting families
Singaporean families with children aged 12 or younger can look forward to Child LifeSG credits of S$500 for each eligible child, to help them with day-to-day household expenses. This will be given in July for children born between 2014 and 2025, and in April 2027 for those born in 2026. The credits can be accessed through the LifeSG mobile app. The credits can be utilised at any physical or online merchant that accepts payment through PayNow QR or Nets QR.
Come Jan 2027, help will be offered to parents with children in pre-school or whose children are enrolled in a student care centre registered with the Ministry of Social and Family Development. The maximum monthly household income to qualify for additional subsidies in pre-schools, as well as infant care and childcare centres licensed by the Early Childhood Development Agency, will be raised from S$12,000 to S$15,000.
The maximum monthly household income to quality for Student Care Fee Assistance will also be raised from S$4,500 to S$6,500.
5. Raising job security through improving skills
Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) will be merged into a new statutory board. The new agency will be jointly overseen by the Ministry of Manpower (MOM) and the Ministry of Education (MOE), in a move aimed at strengthening the integration of Singapore’s jobs and skills ecosystem.
By bringing jobs and skills under a single agency, the government aims to better align future skills with future job needs. The merger is expected to deliver more seamless, end-to-end career and employment services for Singaporean workers, while enabling faster and more effective responses to changes in the evolving economy and labour market.
The Government will also redesign the SkillsFuture website to help Singaporeans quickly find courses that match their work needs and proficiency levels. They will also provide 6 months of free access to premium AI tools for those who take up selected AI training courses.
Tip: Check out your SkillsFuture credits and leverage them to expand your skillsets and/or develop a side hustle.
6. Encouraging giving through tax support
The government will extend key schemes that promote giving and volunteering, as part of efforts to build a “We First” society grounded in solidarity and shared purpose.
Qualifying donations to Institutions of a Public Character (IPCs) and other eligible institutions will continue to receive 250% tax deductions, with the scheme extended for another 3 years until end-2029. IPCs are exempt or registered charities which can issue tax deduction receipts to donors for qualifying donations made.
In summary
Budget 2026 addressed immediate concerns about rising costs for both families and businesses. It also laid the groundwork for sustained growth, strengthened social safety nets, and future infrastructure development for Singapore.
To build on this momentum and achieve lasting financial well-being, remember to continuously expand your financial knowledge and develop money habits as well as a comprehensive financial plan that encompasses budgeting, insurance, wealth accumulation, housing, retirement, and estate planning.
