CPF Special Account Closure for Members 55 and Above on Jan 19; Notifications Start Jan 20
SINGAPORE: On Sunday, January 19, the Special Accounts of approximately 1.4 million Central Provident Fund (CPF) members aged 55 and above were officially closed. This significant move was initially announced in Budget 2024, aimed at enhancing the retirement support for seniors in Singapore.
According to the CPF Board, members will begin receiving notifications starting Monday. They will be informed through a letter, email, or SMS, as per their contact details on file. For more detailed information about the amounts transferred to their Retirement Account or Ordinary Account, members can access their online transaction history by logging into their CPF account via the official website or CPF Mobile application.
In light of this transition, the CPF Board issued a cautionary advisory to its members, urging them to stay vigilant against potential scammers. These fraudulent individuals may attempt to impersonate staff members, government officials, bank employees, or insurance agents, claiming to be affiliated with the CPF Board. Their deceptive tactics often involve soliciting personal information under the guise of offering advice on CPF-related matters or promising higher investment returns.
Be Alert to Scammers
The CPF Board emphasizes that all legitimate calls from their organization will originate from either 6227 1188 or 6202 3388. Members are advised to promptly end any calls received from alternate numbers claiming to represent the CPF Board. In cases of missed calls from the CPF Board, members can anticipate receiving a gov.sg SMS or an email from an address ending in @cpf.gov.sg or @e.cpf.gov.sg, containing callback instructions. In situations of uncertainty, members are encouraged to contact the 24/7 ScamShield anti-scam helpline at 1799 for further clarification and guidance.
What are the Changes?
With the closure of the Special Account, the savings will be transferred to the Retirement Account, potentially reaching the Full Retirement Sum. Effective January onwards, members will continue to accrue the long-term interest rate. Notably, savings across the Special, MediSave, and Retirement Accounts will now earn a fixed annual interest rate of 4 per cent from January 1 to March 31, 2025. Any residual Special Account funds have been relocated to the members’ Ordinary Account, where they will accumulate interest at a rate of 2.5 per cent per annum. Individuals maintain the flexibility to withdraw these funds as needed.
“If members wish to sustain the higher interest rate of 4 per cent per annum and optimize their retirement payouts, they can choose to transfer the Ordinary Account savings to their Retirement Account, up to the Enhanced Retirement Sum for the current year. This transfer is permanent and can be executed anytime; however, to secure the elevated interest rate from January onwards, the transfer must be processed by January 2025,” stated the CPF Board.
Raised Enhanced Retirement Sum
Effective January 1, the Enhanced Retirement Sum was elevated from three times to four times the Basic Retirement Sum. This adjustment offers CPF members aged 55 and above the opportunity to voluntarily augment their Retirement Account contributions to receive augmented monthly payouts during retirement. The Enhanced Retirement Sum for 2025 stands at S$426,000 for all members aged 55 and above. As this figure escalates annually, members turning 55 years old in 2025 could potentially receive CPF LIFE monthly payouts of up to S$3,300 for life, commencing at age 65, by opting to top up to the Enhanced Retirement Sum of S$426,000 this year.
Given the ongoing increment in the Enhanced Retirement Sum each January, members are encouraged to consider making additional top-ups annually to further enhance their payouts. Detailed information regarding the Retirement Sum amounts from 2025 to 2027 is readily accessible online. CPF members aged 55 and above can leverage the monthly payout estimator to project potential earnings upon topping up their Retirement Account and ascertain the feasible top-up amount in their Retirement dashboard.
Enhanced Matched Retirement Savings Scheme
Introduced in 2021, the Matched Retirement Savings Scheme has been instrumental in assisting senior Singaporeans with limited retirement savings to bolster their financial security and enhance their monthly payouts during retirement. The scheme entailed the government matching every dollar of cash top-ups made to the Retirement Accounts of eligible members, aged 55 to 70, up to S$600 per year per member. In January 2025, a substantial sum of S$61 million in matching grants was allocated to the Retirement Accounts of over 103,000 members for cash top-ups received in 2024, with nine out of ten members obtaining the maximum annual matching grant of S$600.
Commencing January 1, the age ceiling for the Matched Retirement Savings Scheme was removed, and the matching grant was elevated to S$2,000 per year, with a lifetime cap of S$20,000 per eligible member. These enhancements have rendered more than 740,000 members eligible for the scheme this year, nearly doubling the 395,000 members in 2024. Additionally, tax relief for cash top-ups attracting the Matched Retirement Savings Scheme matching grant has been abolished, underscoring the substantial benefit extended by the government through this initiative. Contributors can still avail up to S$16,000 in tax relief on cash top-ups to themselves and their beneficiaries that do not qualify for the matching grant.
Eligibility for the Matched Retirement Savings Scheme is automatically evaluated at the onset of each year. Members can verify their eligibility at any time through their Retirement dashboard on the CPF website or via the Matched Retirement Savings Scheme eligibility checker. Those meeting the criteria will receive notifications from February to March via email or traditional mail.