If you haven’t been keeping up with the latest CPF developments, now is a good time to start. Major adjustments are being rolled out in 2025, with the aim of strengthening retirement adequacy, improving long-term healthcare planning, and extending greater support to vulnerable groups—including senior workers, platform workers, and those with low retirement savings.
Let’s unpack the nine key CPF changes that could directly affect your financial future and what they mean for you or your loved ones.
1. Higher CPF Monthly Salary Ceiling: Save More As You Earn More
The CPF monthly salary ceiling is gradually being increased to reflect rising wages in Singapore. By 1 January 2025, the ceiling will be raised from S$6,800 to S$7,400, with the final increment to S$8,000 set for 1 January 2026.
This move is meant to allow middle-income earners to contribute more to their CPF accounts, ultimately helping them build stronger retirement savings. The CPF contribution system, which is based on a percentage of your salary, used to cap contributions at S$6,000 for many years. But with inflation and wage growth, this outdated cap limited how much higher earners could save in their CPF.
What this means for you:
If your monthly salary exceeds S$6,800, you’ll see a higher amount of mandatory CPF contributions from both you and your employer. While it does reduce your take-home pay slightly, it boosts your long-term financial security—especially your retirement funds.
2. Farewell to the CPF Special Account (SA) at Age 55
Starting 19 January 2025, the Special Account (SA) will be closed for CPF members aged 55 and above.
Instead, SA funds will be transferred to the Retirement Account (RA)—up to the Full Retirement Sum (FRS) for your age group. The RA continues to earn a long-term interest of at least 4% per annum, making it a stable and secure savings pool for your retirement payouts.
If you’ve already met your FRS (whether through cash or a property pledge), the remaining funds in your SA will be transferred to your Ordinary Account (OA), where they will be fully withdrawable and earn at least 2.5% interest annually.
Key insight:
This change simplifies CPF account management for those aged 55 and above. While some may feel concerned about losing the SA, the reality is that the savings don’t disappear—they’re simply being redirected based on your retirement planning needs.
3. Enhanced Retirement Sum (ERS) Raised to 4x the Basic Retirement Sum (BRS)
To give CPF members the option to boost their monthly payouts even further, the Enhanced Retirement Sum (ERS) has been revised upwards from 3 times the BRS to 4 times the BRS.
Here’s what that looks like in 2025:
Retirement Sum | Amount | CPF LIFE Monthly Payout (Starting Age 65) |
BRS | S$106,500 | S$840–S$900 |
FRS | S$213,000 | S$1,590–S$1,710 |
ERS | S$426,000 | S$3,080–S$3,310 |
By allowing members to top up to 4x the BRS, the CPF system is offering a flexible way to achieve higher lifelong payouts through CPF LIFE, Singapore’s national annuity scheme.
Bottom line:
If you’re serious about securing a high-quality retirement lifestyle, this is a game-changer. Those who can afford to top up to the ERS level can expect over S$3,000 a month in payouts from age 65—providing a strong safety net.
4. Updated Basic Healthcare Sum (BHS)
The Basic Healthcare Sum (BHS) represents the maximum amount you need in your MediSave Account (MA) for basic subsidised healthcare needs in old age.
- For CPF members turning 65 in 2025, the BHS is S$75,500.
- For those who turned 65 in 2024, it was S$71,500.
Once set for a cohort at age 65, the BHS remains fixed for life. For members below age 65, the BHS is adjusted annually to reflect expected future healthcare costs.
Why this matters:
This ensures that CPF savings keep pace with increasing medical needs. The goal is to make sure seniors don’t have to worry about affording basic healthcare expenses in retirement.
5. Higher CPF Contribution Rates for Senior Workers
From 1 January 2025, contribution rates will rise for workers aged above 55 to 65 as part of an ongoing effort to equalise rates with younger workers by 2030.
Here’s a breakdown:
Age Group | Total CPF Contribution in 2025 | Increase |
55 to 60 | 34% (from 32.5%) | +1.5% |
60 to 65 | 23.5% (from 22%) | +1.5% |
The increase is shared between employers and employees, with 1% coming from workers and 0.5% from employers.
Insight:
Older workers now have more time and opportunity to boost their CPF balances before retirement. This benefits those planning to work longer and accumulate more funds for their golden years.
6. Expansion of the Matched Retirement Savings Scheme (MRSS)
The MRSS, introduced in 2021, was designed to help older Singaporeans with low CPF balances by matching voluntary top-ups made to their RA.
Key changes from 1 January 2025:
- Eligibility now includes seniors above age 70.
- Annual matching cap raised to S$2,000.
- Lifetime matching cap increased to S$20,000.
However, tax relief for cash top-ups that attract matching will be removed, as the matching grant is already a significant incentive.
Why this matters:
This encourages families to help elderly loved ones boost their retirement income through voluntary top-ups—with the government effectively doubling the effort.
7. Platform Workers to Receive CPF Contributions
Starting in 2025, platform workers (like delivery riders and private-hire drivers) will begin receiving CPF contributions, which will gradually rise to match those of traditional employees.
The increases will be phased in over 5 years:
- Workers’ contributions: up to +2.5% per year
- Operators’ contributions: up to +3.5% per year
What this means:
This move levels the playing field and ensures gig workers also benefit from CPF savings, retirement income, and MediSave contributions for healthcare.
8. Silver Support Scheme (SSS) Gets a Boost
The Silver Support Scheme helps seniors who had low earnings during their working years and now have little retirement income. Starting in 2025:
- Quarterly cash payouts will increase by 20%.
- The income threshold will rise from S$1,800 to S$2,300 per person in the household.
Key takeaway:
More elderly Singaporeans will qualify for the scheme, and those already receiving payouts will enjoy higher financial support—crucial for basic living expenses.
9. Workfare Income Supplement (WIS) Enhancements
Workfare encourages employment and supplements income for lower-wage workers. From 2025:
- Income cap raised to S$3,000 (from S$2,500).
- Maximum annual payout increased to S$4,900 (from S$4,200).
This ensures that even as wages rise, lower-income workers continue to receive support, keeping work attractive and financially sustainable.
Final Thoughts
The 2025 CPF changes reflect Singapore’s continued push to help its citizens achieve a secure and dignified retirement. These shifts also acknowledge the evolving workforce landscape—including gig workers and an ageing population.
Here’s what you can consider doing:
- Review your CPF contribution status if your income exceeds previous ceilings.
- Explore topping up your RA if you’re turning 55 soon.
- Talk to elderly family members about MRSS top-ups.
- If you’re self-employed or a platform worker, plan for higher CPF contributions.
- Check your eligibility for Silver Support or Workfare schemes.
Being proactive about your CPF planning today ensures that you’re better prepared for tomorrow.
Ready to take control of your financial future?
Consider scheduling a financial health check with a Financial Advisor. Whether you’re just starting your financial journey or looking to optimize your existing plan, a Financial Advisor can provide personalized guidance tailored to your unique goals and circumstances.