Planning for retirement just got a major update in Singapore. Starting January 1, 2025, the Central Provident Fund (CPF) Retirement Sum will undergo significant changes aimed at helping Singaporeans better prepare for their golden years. If you’re wondering how this affects you or your loved ones, you’re in the right place.
Whether you’re in your early 30s planning ahead or already nearing age 55, understanding these CPF updates is crucial for smart financial planning. In this article, we break down everything you need to know—in plain English—so you can take action with confidence.
Singapore’s 2025 CPF Retirement Sum Hike
| Change | Details |
|---|---|
| Enhanced Retirement Sum (ERS) | Increased from 3x to 4x the Basic Retirement Sum (BRS), i.e. S$426,000 |
| Basic Retirement Sum (BRS) | S$106,500 for those turning 55 in 2025 |
| Full Retirement Sum (FRS) | Set at S$213,000 (2x BRS) |
| ERS Monthly Payouts (Est.) | Between S$3,100 – S$3,330 starting at age 65 |
| Special Account Closure | For CPF members aged 55+ from Jan 19, 2025 |
| CPF Monthly Salary Ceiling | Raised to S$7,400 in 2025 and S$8,000 in 2026 |
| Matched Retirement Savings Scheme | Annual matching cap raised to S$2,000, lifetime cap at S$20,000 |
| Silver Support Scheme Update | Household income threshold raised to S$2,300, payouts up 20% |
| Official Resource | CPF Website |
The 2025 CPF Retirement Sum changes reflect Singapore’s commitment to strengthening retirement adequacy. Whether you’re a young professional, nearing retirement, or advising others on financial planning, now is the time to act. Review your CPF savings, explore topping-up options, and take advantage of the higher salary ceiling and government matching schemes.
Start today to ensure peace of mind tomorrow. Because when it comes to retirement, preparation is power.
Understanding the CPF Retirement Sum Changes for 2025
What Is the CPF Retirement Sum?
The CPF Retirement Sum refers to the amount of savings set aside in your Retirement Account (RA) when you turn 55. This sum ensures that you have monthly payouts under the CPF LIFE scheme when you retire, starting from age 65.
There are three levels:
- Basic Retirement Sum (BRS): For those with a property and who pledge it.
- Full Retirement Sum (FRS): For members who don’t pledge property or want higher payouts.
- Enhanced Retirement Sum (ERS): For those who want the maximum payout.
What’s Changing in 2025?
1. Enhanced Retirement Sum (ERS) Raised to 4x BRS
Starting 2025, the ERS will be 4 times the BRS, up from the previous 3 times. That means if the BRS is S$106,500, the ERS will now be S$426,000.
Why This Matters: Higher ERS means higher monthly payouts—ideal if you want greater retirement security.
2. Annual Adjustments to Retirement Sums
From 2025 to 2027, retirement sums will rise about 3.5% annually to keep up with inflation.
| Year | BRS | FRS | ERS |
| 2025 | S$106,500 | S$213,000 | S$426,000 |
| 2026 | S$110,200 | S$220,400 | S$440,800 |
| 2027 | S$114,100 | S$228,200 | S$456,400 |
3. Special Account (SA) Closure for 55+ Members
From January 19, 2025, the Special Account (SA) will be closed for members aged 55 and above. Funds in SA will be:
- Moved to RA up to FRS,
- Excess goes to the Ordinary Account (OA).
4. Higher CPF Salary Ceiling
To help workers save more, CPF monthly salary ceiling will be:
- S$7,400 from Jan 1, 2025
- S$8,000 from Jan 1, 2026
This benefits higher-income earners by increasing their CPF contributions.
5. Matched Retirement Savings Scheme (MRSS)
The government will match retirement top-ups made to eligible lower-income members.
- Annual cap increased from S$600 to S$2,000.
- Lifetime matching cap set at S$20,000.
- Eligibility extended to members above age 70.
6. Silver Support Scheme Enhancements
This scheme supports the bottom 20% of seniors with little CPF savings.
- Household income threshold raised to S$2,300.
- Quarterly payouts increased by 20%.
What Does This Mean for You?
If You’re Turning 55 in 2025:
You can now top up your CPF Retirement Account up to S$426,000. Doing so could provide monthly payouts of over S$3,300, helping you maintain your lifestyle in retirement.
If You’re Below 55:
Start planning early. Use CPF tools like the CPF Retirement Calculator to estimate your future payouts and see how voluntary contributions can help.
For Employers & Financial Planners:
Adjust retirement strategies for clients and employees. Keep them informed of CPF contribution changes, and suggest topping up to the ERS where suitable.
Practical Tips for Maximizing Your CPF Retirement Savings
1. Make Voluntary Top-Ups
Use the Retirement Sum Topping-Up Scheme (RSTU) to boost your RA and enjoy tax relief.
2. Plan Around the SA Closure
If you’re turning 55 soon, review your SA and make decisions before the closure date.
3. Use CPF Tools and Resources
Stay up to date using tools on the CPF Website.
4. Consider CPF LIFE Plans
Understand how Standard, Escalating, and Basic Plans offer different monthly payouts. Visit the CPF LIFE Estimator for projections.
5. Talk to a Financial Advisor
Every CPF member’s situation is unique. A financial advisor can help tailor a strategy to meet your specific goals.
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FAQs About Singapore’s 2025 CPF Retirement Sum Hike
Q: Why is the ERS being raised to 4x BRS?
A: To help Singaporeans receive higher monthly payouts for better retirement adequacy.
Q: Can I still withdraw my CPF savings at 55?
A: Yes, you can withdraw any savings above your FRS or BRS (if you own property).
Q: What happens to my SA after 55?
A: It will be closed, and funds will move to your RA (up to the FRS). The rest goes to your OA.
Q: Who benefits most from the salary ceiling increase?
A: High-income earners can contribute more to CPF, boosting their retirement savings.
Q: Are there any tax benefits for topping up CPF?
A: Yes, you can enjoy up to S$8,000 in tax relief for topping up your CPF RA.
Q: How does the Matched Retirement Savings Scheme help me?
A: If you’re lower-income and eligible, the government matches your top-ups—dollar-for-dollar up to the annual cap—boosting your retirement savings.
