Singapore’s Central Provident Fund (CPF) is making changes to its structure by closing the Special Account (SA) for people over 55 years old. The transition started in January 2025 and will finish by mid-January 2026. By 2026 the effects of this change will be clear and the main focus now is on how members manage their retirement savings. This new approach simplifies the system and allows many people to build up larger monthly payouts more easily.
Decoding the CPF Special Account: What Seniors Need to Know
The Special Account used to hold part of your CPF contributions for retirement & earned interest rates of 4% or higher. It offered flexibility because you could access it after reaching age 55. Now the focus has shifted toward moving your savings into the Retirement Account for extended periods to provide better long-term security.
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Reasons Behind the 2026 Phase-Out: Policy Shifts Explained
The government closed the SA to save money and make it more efficient. This means flexible funds will earn less interest while retirement funds that are locked away will earn higher interest rates. The closure process started in early 2025 & was completed by mid-January. People who are 55 years old or older cannot make new contributions to their SA accounts.
Future of Your SA Savings: Where Your Funds Are Heading
On the last day the remaining SA balance was first moved to your RA until it reached the Full Retirement Sum which is approximately S$205800 in 2025. Any amount beyond that was added to the Ordinary Account where it earns 2.5% interest rather than the earlier 4%.
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Interest Rate Changes: How Returns Will Be AffectedAdvantages of the New CPF
RA deposits will keep earning the same high interest rate of up to 4% with a guaranteed minimum floor that has been extended until 2026. Meanwhile OA deposits will earn whatever the current short-term rate happens to be. Members can still receive extra interest bonuses on all their accounts.
Rules for Older Citizens
The system reduces how many lines appear on your CPF statement and helps you move more money into the RA account for lifelong CPF LIFE payments. Many people can now top up their accounts to reach the Enhanced Retirement Sum of $426000 in 2025. This higher amount gives them a larger monthly pension.
Your Options Post-Phase-Out: Strategic Choices to Consider
You have the option to transfer money from your Ordinary Account to your Retirement Account. This transfer cannot be reversed once completed. The benefit is that funds in the Retirement Account earn a higher interest rate and will boost your retirement payouts later on. On the other hand you might prefer to leave your money in the Ordinary Account instead. This gives you more flexibility since you can use those funds for housing purchases or other approved investments whenever you need them.
Comparing Pre- and Post-Closure Accounts: Key Differences
Differences for Members Aged 55 and Over The table below shows the key differences that apply to members who are 55 years old or older:
| Aspect | Before Closure (Pre-2025) | After Closure (2025 Onward) |
|---|---|---|
| Special Account Status | Open, earning approximately 4% | Closed |
| New Contributions | Directed partly to Special Account (SA) | Directly allocated to Retirement Account (RA) or Ordinary Account (OA) |
| Withdrawable Savings | Withdrawals possible from SA and OA | Withdrawals mainly from OA |
| Retirement Focus | Split between SA and RA | All contributions to RA up to limits |
| Enhanced Top-Up Limit | Up to 3× Basic Retirement Sum (BRS) | Up to 4× BRS (S$426,000 in 2025) |
| Interest on Excess Amounts | Approximately 4% in SA | 2.5% in OA |
Retirement Planning After 2026: Preparing for the New Rules
The 4% minimum interest rate will remain in effect throughout 2026 and the following years. As salary caps & interest rates rise, total savings will continue to grow. Members under 55 will retain their Special Account balances. The gradual removal of the CPF Special Account supports retirement preparation by keeping designated funds in a secure setting while providing flexibility for other financial needs. Access your CPF account now to check your fund transfers, calculate your retirement payouts or consider adding voluntary contributions to your Retirement Account. Plan ahead to ensure your retirement is financially secure.
