CPF Special Account Closure 2025: Boost Your Retirement Payouts
CPF Special Account closure 2025 heralds a massive change in Singapore’s retirement savings framework. Introduced during Budget 2024, the simplified account structures together with enhancements to retirement payouts and a simpler CPF Life payout, allow CPF members aged 55 years and above to have additional savings flexibility.
What Happened to the CPF Special Account in 2025?
CPF officially closed the Special Account (SA) for members aged 55 and above on 19 January 2025. This affects 1.4 million members, with savings reallocated as follows:
Retirement Account (RA):
Up to the Full Retirement Sum (FRS) of $213,000 for 2025, your savings were transferred to the RA. These funds will continue to grow as they earn 4% annual interest for retirement.
Ordinary Account (OA):
CPF placed the remaining funds past the FRS in the OA, where they earned 2.5% interest yearly. These deposits are optional and you may withdraw them or transfer them back to the RA to draw higher interest, up to the Enhanced Retirement Sum (ERS).
Raised Enhanced Retirement Sum (ERS)
These included raising the ERS from three to four times the Basic Retirement Sum (BRS) from 1 January 2025. By topping up their RA to this level, members will get up to $3,300 per month as CPF LIFE payouts, starting at age 65, bringing the ERS to $426,000.
Notifications and Online Access
The closure of SA and the reallocation of funds was notified to CPF members through hardcopy letters, emails, or SMS, in force from 20 January 2025. The updated balances in members’ RA or OA can be checked using the CPF Mobile app or cpf.gov.sg online dashboard.
Enhanced Matched Retirement Savings Scheme (MRSS)
In 2025, CPF expanded the Matched Retirement Savings Scheme (MRSS), which was introduced in 2021, to help seniors with less retirement savings.
The 70 age cap has been lifted.
The Annual Matching Grant has been raised to $2,000 and there is a 20,000-lifetime cap.
MRSS will be offered to over 740,000 members in 2025 as opposed to 395,000 members in 2024.
CPF assesses members' eligibility each year and notifies them between February and March.
Planning Your Retirement
CPF Special Account Closure 2025 can be quite confusing to navigate through. You need to know how to use these updates in your retirement planning and how they affect your finances.
Ascendant Global Credit Group specializes in:
· How to maximize CPF LIFE payouts by making strategic top-ups.
· How the CPF Retirement Sum calculator and ERS planning work.
· Custom retirement insurance solutions and approaches tailored to the individual.
Secure Your Financial Future
But uncertainty shouldn't stand in the way of reaching your retirement goals. If you want to know how we can help you maximize your CPF savings and retirement strategies, visit Ascendant Global Credit Group today.
FAQs
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The CPF Special Account closure in 2025 caused the SA savings to be transferred to the RA (up to the FRS) or OA to have the remaining amount.
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CPF reallocated funds after closing the SA to increase retirement payouts and provide flexibility to members aged 55 and above.
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CPF allocates funds from the RA to the SA after 55 to maximize retirement benefits.
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