Come 2025, a slew of changes will be made to Singapore’s Central Provident Fund (CPF) scheme. Of these, two changes have generated significant interest: The increase in the Enhanced Retirement Sum (ERS) and the closure of the CPF Special Account (SA) for those aged 55 and above.
Come 2025, a slew of changes will be made to Singapore’s Central Provident Fund scheme. Of these, two changes have generated significant interest: The increase in the Enhanced Retirement Sum and the closure of the CPF Special Account for those aged 55 and above.The announcement of a slew of upcoming changes to Singapore’s Central Provident Fund scheme threw up several requests from Singaporeans for more information and clarifications.
The increased ERS offers an opportunity for members to set aside a higher amount in the RA, which translates to higher CPF LIFE payouts in retirement. If you are already receiving monthly payouts, your payouts will increase if some or all your SA savings are transferred to your RA when your SA is closed.
For those aged 55 and above who have invested their SA savings, you can still hold your existing CPFIS-SA investments until you decide to sell them or until they mature. You can also apply to withdraw your RA savings down to your BRS if you own a property in Singapore with a remaining lease that lasts until you are 95 or older. However, any voluntary top-ups and government grants to your RA cannot be withdrawn.
The additional withdrawable savings is computed based on 20 per cent of your RA savings excluding any cash top-ups, CPF transfers and government grants, less the unconditional S$5,000 which you can withdraw from 55.
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