CPF Retirement: Your Guide to a Secure Future in 2025
Many people in Singapore want to retire comfortably, handle health emergencies, and own a home. The Central Provident Fund (CPF) helps make this possible. It’s a system that supports Singaporeans throughout their lives. While most people know about CPF, understanding how it works can be very helpful.
Each month, a portion of your salary goes into your CPF. This money is saved, grown, and protected by a reliable system. By understanding the different CPF accounts, you’ll see how it provides long-term security.
What is CPF?
CPF is Singapore’s required social security savings plan. Both employees and employers contribute to it. The goal is to help with retirement, housing, and healthcare. Instead of relying on just one source of funds, CPF divides your savings into different accounts.
CPF provides Singaporeans with long-term stability. Lower-wage workers receive extra help through Workfare and government MediSave top-ups.
Understanding Your CPF Accounts
Your CPF contributions are divided into three main accounts:
- Ordinary Account (OA): Used for housing and some retirement savings.
- Special Account (SA): Used for retirement savings with higher interest rates.
- MediSave Account (MA): Used for healthcare costs, insurance, and hospital bills.
CPF Interest Rates in 2025
Here’s a look at the interest rates for each account:
| CPF Account | Interest Rate |
|---|---|
| Ordinary Account | 2.5% |
| Special Account | 4% |
| MediSave Account | 4% |
| Retirement Account | 4% |
If you’re under 55, you can earn up to 5% on the first $60,000 of your combined balances. If you’re 55 or older, you can earn up to 6% on the first $30,000 and up to 5% on the next $30,000. This can significantly increase your savings over time.
When Can You Withdraw Your CPF?
Many people want to know when they can access their CPF savings. Here’s a simple explanation:
- Withdrawal Age: 55
At 55, you can start withdrawing your CPF savings, including a lump sum. You can withdraw the first $5,000, even if you haven’t met the Basic Retirement Sum.
- Payout Eligibility Age: 65
If you were born after 1953, you’ll start receiving monthly retirement payouts from age 65.
The CPF Basic Retirement Sum (BRS)
The BRS is designed to cover your basic living expenses after you retire. It acts as a safety net.
If you own a property with a lease that lasts until you’re at least 95, you can withdraw savings above your BRS. This gives homeowners more flexibility.
CPF Retirement Sums Transfer
At 55, the money in your OA and SA is moved to your Retirement Account. This account will be used for your monthly payouts.
If you turn 65 from 2023 onwards, you can withdraw up to 20% of your Retirement Account savings at once (minus the $5,000 you can withdraw at 55).
This system is designed to keep up with rising living costs and inflation, ensuring your payouts remain helpful.
Frequently Asked Questions About CPF
- Can I withdraw all my CPF at 55?
No, you can’t withdraw all of it. You can withdraw the first $5,000. Any additional amount depends on whether you’ve set aside your retirement sum. If you own a property with a long lease, you may be able to withdraw more.
- What happens to my CPF when I turn 65?
You’ll start receiving monthly payouts from your Retirement Account. The amount depends on how much you’ve saved and the retirement sum you set aside at 55.
- How does CPF help low-wage workers?
Low-wage Singaporeans receive extra support through Workfare and government MediSave top-ups. This helps increase their retirement and healthcare savings.
Source: CPF Retirement Account Interest Rate 2025: CPF Secures Your Retirement & Healthcare
