CPF closes Special Account for members aged 55 and above effective 19 Jan 2025

The closure of CPF Special Account (SA) for members aged 55 and above marks a significant in retirement planning. Here’s a recap on how this change, announced in Budget 2024, impacts your savings and next steps.

On 19 January 2025, the Central Provident Fund (CPF) Board closed the Special Account (SA) of approximately 1.4mn members aged 55 and above. This change announced during in Budget 2024, aims to better align CPF interest rates with the nature of savings in each account.

So, what does this mean you? If you are 55 and older, your SA savings have been transferred as follows:

1) Retirement Account (RA) 

• SA savings have been transferred to the Retirement Account (RA), up to your Full Retirement Sum (FRS). These funds will continue to earn the higher interest rate from January 2025 onwards. 

2) Ordinary Account (OA) 

• Any extra savings in your SA, beyond the FRS, have been moved to your Ordinary Account (OA). These savings will earn 2.5% interest per year, and you can withdraw them whenever needed.

If you want a higher interest rate, of 4% per year and boost your retirement payouts, you can transfer your OA savings to your RA, up to the Enhanced Retirement Sum (ERS) for the current year. This transfer is permanent, so once it is done, you will not be able to reverse it. The transfer can be made anytime. However, if you want the higher interest from January onwards, the transfer must be processed by January 2025. 

Following that, from 20 January 2025, CPF members will receive a hardcopy letter about the closure of their SA, along with an email or SMS where applicable. You can also check the amount transferred to your RA and/or OA by logging into your CPF account online or using the CPF Mobile application.

Members are also advised to be cautious about scammers pretending to be from CPF or other official sources.

In addition to the closure of the SA, there are also other CPF changes to note:

1) Enhanced Retirement Sum (ERS) 

• The ERS has been raised to S$426,000 in 2025 for members aged 55 and above. If you top up your RA to this amount, you could get monthly payouts of up to S$3,300 from age 65. 

• The ERS will increase every year, so you can continue topping up your RA to get higher payouts.  

2) Matched Retirement Savings Scheme (MRSS):  

• This scheme helps members with lower savings to grow their retirement funds. The government matches every dollar you top up to your RA, up to $600 per year if you’re eligible.  
  

From 2025, the MRSS age cap has been removed, so members even of the age 70 can participate. The matching grant has also increased to $2,000 per year, with a lifetime cap of $20,000.

For more details on what to do when your CPF Special Account closes after you've turned 55, refer to HRO's past coverage here on FAQs: What to do when your CPF Special Account closes after you've turned 55, effective 2025.