Account Closures to Focus on Singaporeans and Permanent Residents’ Retirement Needs
Starting April 1, 2024, the Central Provident Fund (CPF) Board will automatically close around 300,000 CPF accounts belonging to non-Singapore citizens and non-permanent residents. Most of these accounts have low balances, with over two-thirds containing less than S$5,000. These accounts belong to individuals who had previously received employer contributions or made voluntary contributions before 2003, as well as former citizens or permanent residents who have since given up their status.
Account holders will have until March 31, 2024, to transfer their CPF savings to personal bank accounts. After the accounts close on April 1, 2024, any remaining savings can still be withdrawn, but they will no longer earn the prevailing CPF interest rate. Non-citizen or non-permanent resident employees in Singapore who wish to continue saving may consider alternative options, such as the Supplementary Retirement Scheme (SRS) or other investment products.
The CPF Board explained that this move marks the final step in ensuring that the CPF system remains focused on its core purpose: supporting the retirement, housing, and healthcare needs of Singapore citizens and permanent residents. The CPF system, originally mandatory for all employees in Singapore before 1987, has since limited voluntary contributions from non-Singapore citizens and permanent residents. Following this policy shift, these individuals will be required to close their CPF accounts.
The CPF Board has previously encouraged Singapore citizens and permanent residents who renounce their status to close their CPF accounts, as they no longer intend to retire in Singapore.
