Significant changes to the Central Provident Fund (CPF) in 2025 are set to impact the way Singaporeans plan and receive their retirement income.
These new rules and updates, part of a broader effort to adapt to increasing life expectancy and inflation, aim to provide enhanced financial security for seniors.
From updated Retirement Sum thresholds to adjustments in interest applications and account closures, these reforms may influence retirement strategies for years to come.
New Retirement Age and CPF Account Transfers
Effective by 2026, Singapore’s minimum retirement age will increase to 64, up from the current age of 63. When CPF members reach age 55, savings from their Special Account (SA) and Ordinary Account (OA) will be transferred into a Retirement Account (RA).
This RA forms the foundation for monthly payouts under the CPF LIFE scheme, supporting post-retirement living expenses.
CPF Retirement Sums for 2025 and Beyond
To ensure retirees receive sufficient monthly income, the CPF Board has defined three Retirement Sum tiers:
| Year | Basic Retirement Sum (BRS) | Full Retirement Sum (FRS) | Enhanced Retirement Sum (ERS) |
|---|---|---|---|
| 2025 | S$106,500 | S$213,000 | S$319,500 |
| 2026 | S$110,200 | S$220,400 | S$330,600 |
| 2027 | S$114,100 | S$228,200 | S$342,300 |
- BRS provides monthly payouts of S$840 to S$900.
- FRS enables monthly payouts ranging between S$1,560 and S$1,670.
- ERS delivers the highest payouts, going up to S$3,550 per month by 2027.
Key Changes to Enhanced Retirement Sum (ERS) Cap
The ERS cap will be raised starting March 1, 2025, offering retirees the option to top up their RA for higher monthly payouts. Here’s a comparison of ERS caps and estimated payouts:
| Year | ERS Before Changes | Monthly Payout | ERS After Change (from 1 Jan) | Monthly Payout |
|---|---|---|---|---|
| 2025 | S$319,400 | S$2,530 | S$426,000 | S$3,300 |
| 2026 | S$330,600 | S$2,610 | S$440,800 | S$3,440 |
| 2027 | S$342,300 | S$2,690 | S$456,400 | S$3,550 |
These payouts are calculated under the Central Provident Fund LIFE Standard Plan for male CPF members starting payouts at age 65.
READ MORE: Singapore Monthly Payout 2025-Eligibility, Benefits, And Key Payment Dates Explained
Policy Changes: Closure of Special Account (SA)
One of the biggest changes coming in 2025 is the closure of the Special Account for members aged 55 and above. This means:
- SA balances will be transferred to RA up to the FRS cap.
- Excess funds will go back to the OA and become withdrawable.
- RA balances will continue to enjoy long-term interest rates (up to 6% annually), while OA will yield short-term interest.
This shift ensures higher guaranteed returns on retirement savings while still allowing flexibility for withdrawals from OA.
Eligibility Criteria for CPF Retirement Sum
To benefit from the CPF Retirement Sum scheme, individuals must meet the following conditions:
- Singapore citizens or PRs turning 55 and above.
- Not enrolled in CPF LIFE (for those born before 1958).
- Foreigners aged 65 and above may qualify under specific schemes.
- Payouts may be deferred up to age 70 for larger monthly benefits.
CPF LIFE payouts continue until the member’s death or until savings are exhausted, whichever comes later.
The 2025 Central Provident Fund updates signal a significant shift in how Singaporeans prepare for and sustain their retirement.
From higher Retirement Sums to the closure of the Special Account and increased payout caps, the government is striving to align Central Provident Fund policies with longer life spans and economic challenges.
These changes underscore the importance of early planning and understanding Central Provident Fund rules to maximize retirement income and enjoy peace of mind in the later years.
FAQs
What happens to my Special Account when I turn 55 in 2025?
It will be closed, and funds will be transferred to the Retirement Account up to the Full Retirement Sum. Excess funds will move to the Ordinary Account.
Can I still withdraw my CPF savings after age 55?
Yes, any balance beyond the FRS in your Ordinary Account remains withdrawable at any time.
What is the benefit of topping up to the Enhanced Retirement Sum?
It allows retirees to receive significantly higher monthly payouts—up to S$3,550 by 2027—ensuring greater financial comfort.