New measures aim to strengthen retirement, housing, and healthcare savings.
The Central Provident Fund (CPF) Board is rolling out key changes in 2025 to help Singaporeans enhance their savings for retirement, housing, and healthcare. These updates reflect the government’s commitment to maintaining CPF as a key pillar of social security.
Key Changes from January 2025:
Closure of Special Account (SA) for Members Aged 55 and Above
The SA will be closed for members aged 55 and older.
Funds will be transferred to the Retirement Account (RA) or Ordinary Account (OA).
Existing CPF Investment Scheme (CPFIS) investments under SA will remain, but proceeds will go to the RA.
Higher Enhanced Retirement Sum (ERS)
The ERS will increase from three to four times the Basic Retirement Sum (BRS).
The new ERS will be S$426,000, up from S$308,700.
Members opting for the ERS can receive higher CPF payouts during retirement.
Enhanced Matched Retirement Savings Scheme (MRSS)
Matching grant cap will rise to S$2,000 per year (up from S$600).
Age cap of 70 will be removed, making around 800,000 CPF members eligible.
Tax relief for cash top-ups attracting the grant will be removed, as the grant itself is a benefit.
More Changes Expected
These are just three of the eight upcoming CPF updates, with more details to follow as the government continues to refine the CPF system. The enhancements are aimed at providing Singaporeans with greater financial security in their later years.
