By 2026, Singapore’s minimum retirement age will rise to 64. When individuals reach 55, funds from their Special and Ordinary Accounts are transferred into a newly created Retirement Account (RA), providing financial support during retirement. This article outlines the essential details of the CPF Retirement Sum.
Singapore CPF Retirement Sum 2024
In response to rising inflation, the Central Provident Fund (CPF) helps ensure Singaporeans have sufficient savings for retirement. The government has introduced new guidelines, set to be implemented by 2025, to enhance financial security. Monthly payouts and bonuses have been increased to assist low-income seniors.
The CPF Retirement Sum is a savings benchmark, determining how much individuals need to save to receive their preferred monthly payouts. There are three main savings targets: the Basic Retirement Sum (BRS), Full Retirement Sum (FRS), and Enhanced Retirement Sum (ERS).
CPF Basic, Full, and Enhanced Sum Updates
- Basic Retirement Sum (BRS) provides monthly payments to cover essential expenses. At age 55, the Retirement Account is capped at S$102,900. At age 65, seniors receive payouts between S$840 and S$900. The BRS will increase to S$106,500 in 2025, S$110,200 in 2026, and S$114,100 in 2027.
- Retirement Sum (FRS) accounts for future housing and living expenses. At 55, the Retirement Account is capped at S$205,800. From age 65, monthly payouts will range from S$1,560 to S$1,670. The FRS will rise to S$213,000 in 2025, S$220,400 in 2026, and S$228,200 in 2027.
- Enhanced Retirement Sum (ERS) offers the highest monthly payouts and provides increased retirement income. The ERS target is S$308,700, planned increases to S$319,500 in 2025, S$330,600 in 2026, and S$342,300 in 2027.
Policy Changes
The CPF Retirement Sum provides financial assistance based on an individual’s accumulated savings. According to recent updates, the government will raise the ERS cap starting in January 2025. Below is a summary of the changes:
Year |
BRS |
ERS Before Changes |
Monthly Estimated Payouts |
ERS from 1 Jan 2025 |
Monthly Estimated Payouts |
|---|---|---|---|---|---|
2025 |
S$106,500 |
S$319,400 |
S$2,530 |
S$426,000 |
S$3,300 |
2026 |
S$110,200 |
S$330,600 |
S$2,610 |
S$440,800 |
S$3,440 |
2027 |
S$114,100 |
S$342,300 |
S$2,690 |
S$456,400 |
S$3,550 |
These estimated payouts are based on a male CPF member who turned 55 and began payouts at 65 under the CPF Life Standard Plan.
CPF Retirement Sum Eligibility
To qualify for the CPF Retirement Sum, the following criteria must be met:
- Individuals born before 1958 and not enrolled in CPF Life are eligible for CPF Retirement Sum.
- People under 70 can choose to delay their payouts.
- Non-Singapore citizens and non-permanent residents must be at least 65 to qualify.
Senior citizens will continue receiving monthly payouts until their savings are exhausted or they reach the age of 90. The Retirement Account balance earns up to 6% interest annually.
All We Know
The Singapore government guarantees financial security in retirement based on personal savings. At 55, CPF savings are transferred to the Full Retirement Sum (FRS), creating a Retirement Account (RA). Initially, Special Account (SA) savings are transferred, followed by Ordinary Account (OA) funds.
Starting in 2025, the Special Account will be closed for those aged 55 and above. Long-term interest will be applied to retirement savings, while withdrawable funds will earn short-term interest.
If the SA is closed, the funds will be moved to the RA up to the FRS limit to secure higher payouts. Once the FRS is reached, the remaining funds are transferred back to the Ordinary Account and can be withdrawn at any time.
For further details, visit the official government website, and stay informed by checking this page for additional CPF Retirement Sum updates.
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