Ashley
The Central Provident Fund (CPF) remains a cornerstone of Singapore’s retirement planning framework. In May 2025, new rules were introduced for the CPF Special Account (SA), reshaping contribution allocations, withdrawals, and transfer policies.
These changes aim to enhance the system’s sustainability and ensure better retirement outcomes for all CPF members.
Here’s a comprehensive breakdown of everything you need to know about the Central Provident Fund Special Account updates for 2025.
Updated CPF Contribution Allocation Rules in 2025
Starting May 2025, the Central Provident Fund Board has adjusted the distribution of monthly contributions. Members aged 55 and above will see a larger share of contributions diverted to the Retirement Account (RA) instead of the Special Account.
This change aligns with the government’s focus on retirement adequacy and income stability in later years.
CPF Contribution Allocation (Effective May 2025)
| Age Group | Ordinary Account (OA) | Special Account (SA) | Retirement Account (RA) | Medisave Account (MA) |
|---|---|---|---|---|
| Below 35 | 23% | 6% | N/A | 8% |
| 35–45 | 21% | 7% | N/A | 9% |
| 45–55 | 19% | 8% | N/A | 10% |
| 55–60 | 12% | 3% | 6% | 9% |
| Above 60 | 9% | 1% | 7% | 8% |
These changes reduce the direct contribution to the SA after age 55 but boost the RA, which plays a pivotal role in funding CPF LIFE payouts.
CPF SA Interest Rates Still Remain Attractive
Despite reduced inflows, the CPF SA interest rate in 2025 continues to deliver solid growth. Members earn:
- Base interest: 4% annually
- Extra interest: Additional 1% on first $60,000 of combined Central Provident Fund balances (with a cap of $20,000 from OA)
This compounding return still makes the SA an effective long-term savings tool, especially for individuals aiming to grow funds beyond the Full Retirement Sum (FRS).
Tighter Withdrawal and Transfer Restrictions
Under the Central Provident Fund Special Account rules 2025, certain flexibilities have been removed:
- No SA-to-OA transfers for property purchases for members under 55
- This prevents erosion of long-term savings and reinforces the SA’s role in retirement adequacy
Additionally, under the Retirement Sum Topping-Up (RSTU) scheme, annual contribution limits remain unchanged:
- $8,000 for self
- $8,000 for family members
- These top-ups are still eligible for tax relief, making them an effective financial planning tool.
How CPF Members Should Plan in 2025
The Central Provident Fund Special Account changes require strategic reconsideration. Here are some tips:
- Younger members: Consider voluntary contributions to the SA early to take advantage of compounding interest.
- Members nearing 55: Reassess plans around withdrawals and property purchases.
- Older members: Focus on building the Retirement Account to ensure better payouts under Central Provident Fund LIFE.
Understanding how each account plays into your broader retirement plan is crucial now more than ever.
The CPF Special Account rules updated in 2025 signal a strong policy push toward retirement adequacy and financial discipline.
With changes in contribution allocation, tighter withdrawal rules, and reinforced focus on long-term savings, Central Provident Fund members must realign their strategies to make the most of the system.
Those who adapt early stand to benefit from higher stability, better returns, and improved retirement security.
FAQs
What is the CPF Special Account used for?
The Central Provident Fund Special Account is designed for retirement savings, offering higher interest rates to encourage long-term growth. Funds are generally preserved until retirement unless specific conditions are met.
Can I use Central Provident Fund SA funds to buy property in 2025?
No. Under the 2025 rules, members under 55 can no longer transfer funds from the SA to the OA for property purchases. This rule ensures the SA remains intact for retirement use.
How much interest does the CPF SA earn in 2025?
In 2025, the CPF SA earns up to 5% interest, including the base 4% plus an extra 1% on the first $60,000 of Central Provident Fund balances.