Turning 55 in Singapore it’s the beginning of a whole new financial chapter. For many, it means finally accessing the nest egg that’s been growing for decades. Whether it’s taking that long-awaited trip, paying off a home loan, or just securing peace of mind for the years ahead, the Central Provident Fund (CPF) plays a starring role in how Singaporeans plan their golden years.
But as 2025 rolls in, a few key changes are coming to CPF rules at age 55 and if you’re not up to speed, you could either miss out on smarter withdrawal options or lock more money away than you need to. Let’s break down what’s changing, what stays the same, and how you can make the most of your CPF from age 55 onwards.
Goodbye Special Account: A Structural Shift at 55
In a significant change set to take full effect in early 2025, your Special Account (SA) will no longer exist after you turn 55.
Here’s what happens instead:
- If you have enough savings to meet the Full Retirement Sum (FRS), that money will automatically move into your Retirement Account (RA) to support your monthly payouts starting at age 65.
- Any remaining SA savings above the FRS will be transferred to your Ordinary Account (OA) — making them instantly accessible if you need liquidity.
This update simplifies CPF’s account structure post-55 while keeping your retirement needs front and center. It also ensures more of your funds enjoy long-term CPF interest rates (currently up to 6%) while keeping any surplus amount within easy reach for big-ticket expenses or emergencies.
Why This Matters
Before, some CPF members would retain a balance in their SA after 55, thinking it was the best place to grow their funds. In 2025, the government’s taken a firm stance: If you’ve hit FRS, time to optimise and declutter.
What You Can Withdraw at 55
So what’s the actual deal at 55?
You can withdraw:
- Up to $5,000 without needing to meet any retirement sum.
- Any amount above your FRS, if you’ve already set aside the required amount in your RA.
- Even more if you pledge your property (such as an HDB flat or private residence) — you can use your property to cover up to half of the FRS, unlocking additional withdrawal flexibility.
Here’s how it works in practice:
| Scenario | Withdrawal Amount at 55 |
|---|---|
| CPF savings below $5,000 | Can withdraw full balance |
| CPF savings above FRS (~$205,800) | Withdraw everything above that amount |
| CPF savings below FRS but property pledged | Withdraw up to the Basic Retirement Sum (BRS) (~$102,900) |
| No property pledge and below FRS | Can only withdraw up to $5,000 |
And yes — CPF savings are not taxed, so these withdrawals won’t impact your income tax bill.
2025 Retirement Sum Figures: What to Know
Each year, CPF retirement sums rise in line with inflation and longevity trends. For 2025, the projected figures are:
| Retirement Sum | Amount (SGD) | Purpose | Estimated Monthly Payout (from 65) |
|---|---|---|---|
| Basic (BRS) | ~$102,900 | Covers basic needs | ~$900–$1,000 |
| Full (FRS) | ~$205,800 | Standard protection | ~$1,700–$1,900 |
| Enhanced (ERS) | ~$426,000 | Maximise payouts voluntarily | ~$3,300–$3,600 |
You’re not required to top up to the ERS — but doing so voluntarily means more generous lifelong payouts from age 65 onwards.
Special Withdrawal Circumstances
Not everyone follows the default rules. The CPF system does allow early or full withdrawals in a few specific cases:
1. Severe Illness or Terminal Condition
If a member is diagnosed with a medical condition that significantly shortens life expectancy (verified by medical documents), full withdrawal of CPF savings is permitted.
2. Permanent Departure from Singapore
Non-Singapore Citizens or Permanent Residents who decide to renounce residency and leave Singapore permanently can close their CPF account and withdraw all funds.
These exceptions recognise that CPF, while a robust system for long-term retirement, must also provide flexibility in life-altering situations.
Retirement Planning Tips for 2025 and Beyond
Whether you’re already 55 or just a few years away, there are several key strategies to optimise your CPF withdrawals and payouts:
Top Up to the Enhanced Retirement Sum
If you can afford to, topping up your RA to the ERS means higher monthly payouts for the rest of your life. It’s a smart move for those without dependents or large expenses looming.
Delay Monthly Payouts Until Age 70
You can choose to defer payouts beyond 65 — up to 70 — and receive an extra 7% per year in monthly income. That’s compounding in action.
Use the CPF Retirement Dashboard
This is your personalised portal to simulate how much you’ll get, when, and what adjustments you can make to improve your payout scenario. It’s available via cpf.gov.sg, and it’s one of the most powerful tools for retirement planning in Singapore.
Don’t Forget Other CPF Benefits
Even beyond 55, you can continue to enjoy:
- Up to 6% annual interest on your RA savings
- Tax relief on voluntary CPF contributions (up to $8,000/year)
- CPF LIFE annuity plans for lifelong payouts from age 65
Why CPF Is Restructuring Accounts at 55
This update isn’t just about cleaning up accounts it reflects a shift toward financial literacy, long-term stability, and simplification.
Instead of letting members second-guess where to park funds post-55, CPF has drawn a clear line: Retirement money goes into RA, and everything else goes to OA. That clarity helps reduce confusion while keeping the high-interest benefits where they’re most useful.
Also, let’s be real — Singapore’s aging population means smarter distribution of retirement funds isn’t just about individuals. It’s about national policy. These adjustments balance flexibility with discipline — letting members withdraw what they need, while ensuring enough is kept aside for future monthly income.
The changes coming in 2025 are more of a refinement than a revolution, but they’ll have a real impact on how Singaporeans plan their financial freedom after 55. With the Special Account being retired and a more streamlined transfer to the Retirement Account, the focus is now firmly on optimising for income — not just cashing out.
For anyone hitting that 55-year milestone in 2025, the smart money isn’t just on withdrawing — it’s on planning. If you play your cards right, your CPF could deliver not just a secure retirement, but a fulfilling one.
FAQs
Yes as of 2025, your Special Account (SA) will be closed at age 55, and funds will be transferred to your Retirement Account (RA), or to your Ordinary Account if above FRS.
Only if you’ve met the Full Retirement Sum (FRS) or pledged property to meet the Basic Retirement Sum (BRS). Otherwise, only $5,000 is available.
You can still withdraw up to $5,000, but the rest will be reserved for your Retirement Account payouts starting at 65.
No, CPF withdrawals are not taxed, and won’t count towards your assessable income.
Delaying payouts from 65 to 70 can increase your monthly amount by up to 7% per year but it depends on your health, financial needs, and other income.
