Kim
Singapore’s Central Provident Fund (CPF) is one of the most important retirement savings tools for citizens and permanent residents.
Starting January 2025, significant changes have been made to the CPF Special Account (SA) that will affect how members aged 55 and above manage and grow their retirement funds.
These rule changes aim to simplify account structures while optimizing how retirement savings are distributed.
Here’s everything you need to know about the CPF Special Account 2025 updates, including who is affected, how funds will be moved, and how to make the most of the new system.
What Is the CPF Special Account (SA)?
The CPF Special Account is designed primarily for retirement and long-term financial planning, offering a minimum interest rate of 4% per annum. Prior to 2025, individuals could continue growing funds in their SA even after reaching 55 years of age. That’s now changing.
What’s New in 2025? Key CPF SA Changes Explained
The government has announced that from January 19, 2025, the Special Account (SA) will be closed for members aged 55 and above. The key updates include:
1. Automatic Closure of SA for Members Aged 55+
- The SA will no longer exist for CPF members aged 55 and above.
- This is part of streamlining the CPF system and aligning fund purposes with retirement needs.
2. Where Will the SA Money Go?
After closure, the money in the SA will be distributed as follows:
- Up to the Full Retirement Sum (FRS) will be transferred to the Retirement Account (RA), which continues to earn 4% interest.
- Excess funds beyond the FRS will be moved to the Ordinary Account (OA), earning at least 2.5% interest.
3. New Contributions Post-55
All future CPF contributions after age 55 will:
- First go into the RA (up to FRS limit).
- Then, be directed to the OA instead of the SA.
Updated CPF Contribution Rates for 2025
As part of the 2025 reforms, contribution rates have also been revised to reflect increased retirement support, especially for older workers. Here is the updated structure:
| Age Group | Total Contribution Rate | Employer Contribution | Employee Contribution |
|---|---|---|---|
| Below 55 | 37% | 17% | 20% |
| 55–60 | 32.5% | 15.5% | 17% |
| 60–65 | 23.5% | 12% | 11.5% |
| 65–70 | 16.5% | 9% | 7.5% |
| Above 70 | 12.5% | 7.5% | 5% |
These rates help seniors continue building their retirement savings in a structured and predictable manner.
Enhanced Retirement Sum (ERS) Raised
In 2025, the Enhanced Retirement Sum (ERS) has been increased to $426,000, which is four times the Basic Retirement Sum (BRS). Members who wish to receive higher payouts through the CPF LIFE scheme can top up their RA up to this new ERS cap.
This encourages more CPF members to voluntarily contribute or transfer funds to their RA to enjoy greater monthly retirement payouts later.
How the CPF Special Account Closure Affects You
If You’re 55 and Above:
- Your SA will be closed.
- Funds will be transferred to your RA (up to FRS) and OA (if there’s excess).
- You cannot make top-ups to the SA anymore.
- Contributions post-55 will go to the RA and then OA, depending on limits.
If You’re Below 55:
- Your SA remains unaffected for now.
- Continue earning 4% interest.
- Plan early for the SA closure upon reaching 55.
Smart Tips to Maximize CPF Under the New Rules
- Update Your Records: Ensure your CPF nomination and bank details are current.
- Consider RA Top-Ups: Topping up to the new ERS limit could give you a higher CPF LIFE payout.
- Track Your Transfers: Use the CPF Retirement Dashboard to check how much of your SA is going where.
The CPF Special Account changes in 2025 mark a shift in how Singapore manages its retirement savings system for older members.
While the closure of the SA may appear disruptive, the updated structure actually helps focus savings where they matter most: in the Retirement Account, which continues to earn higher interest and forms the base for CPF LIFE payouts.
Whether you’re nearing 55 or still planning ahead, it’s important to understand how these updates affect your retirement strategy, monitor fund movements, and consider topping up your RA to maximize long-term benefits.
FAQs
Can I still invest SA funds after the account closes?
Existing investments under the CPF Investment Scheme (CPFIS-SA) can remain. However, upon maturity, proceeds will go into your RA or OA, depending on your FRS limit.
Can I contribute more to my CPF after 55?
Yes. Voluntary contributions are still allowed. These will now be directed first to your RA (up to FRS), and any remaining portion will go to your OA.
How do I check if my SA has been closed and funds moved?
You can log into your CPF account online or use the Retirement Dashboard to view fund transfers and account statuses.