CPF Special Account Updates

Summarized in 8 Points

February 26, 2024

  1. Changes to Singapore's Central Provident Fund (CPF) will occur from 2025, including the closure of Special Accounts (SA) for members aged 55 and above.

  2. The Enhanced Retirement Sum (ERS) will increase to four times the Basic Retirement Sum (BRS), reaching $426,000 in 2025. (see table below)

  3. SA closure means SA savings will transfer to Retirement Accounts (RA) up to the Full Retirement Sum (FRS), with the excess going to Ordinary Accounts (OA).

  4. CPF members can maximize interest rates by transferring excess SA savings to RA, but this cannot be reversed.

  5. The majority of CPF members aged 55 and above can transfer all SA savings to RA, except for a small percentage.

  6. The raised ERS allows for higher CPF Life payouts, with examples provided based on different CPF Life plans.

  7. Employee CPF contribution rates will rise by 1 percentage point for workers aged 55 to 60 and by 0.5 percentage points for those aged 60 to 65 from January 2025.

  8. Take-home pay won't be affected by SA closure, but older workers may see lower take-home pay due to increased CPF contribution rates.