Ensuring financial security during retirement is a priority for every individual, and in Singapore, the Central Provident Fund (CPF) plays a fundamental role in this process. Unlike many countries that rely on tax-funded pension schemes, CPF operates as a self-funded savings system, where both employees and employers contribute a portion of monthly income to support retirement, healthcare, and housing needs.
With rising living costs and increasing life expectancy, the Singapore government has introduced key changes to the CPF system in 2025 to ensure retirees have adequate savings. These updates include higher CPF Retirement Sums, gradual increases in the retirement age, and new benefits for self-employed individuals.
Singapore Announces Retirement Changes for 2025
| Category | Details |
|---|---|
| System Name | Central Provident Fund (CPF) |
| Country | Singapore |
| Regulated By | CPF Board |
| Updated Retirement Sums | BRS: SGD 105,000, FRS: SGD 210,000, ERS: SGD 315,000 |
| Retirement Age Adjustments | 63 (2025), 64 (2026), 65 (2030) |
| New CPF Benefits for Self-Employed | Voluntary contributions and CPF payouts |
| Official CPF Website | www.cpf.gov.sg |
CPF Retirement Sum Tiers: Understanding the Basics
The CPF system is structured into three retirement savings tiers, which allow individuals to select their preferred level of monthly payouts based on their financial goals.
1. Basic Retirement Sum (BRS)
- Suitable for retirees who own a home and have alternative income sources.
- Provides a modest monthly payout to cover essential living expenses such as utilities, food, and basic healthcare.
- Ideal for individuals who have personal savings or financial support from family members.
2. Full Retirement Sum (FRS)
- Designed to provide a higher level of financial security than BRS.
- Ensures sufficient funds for daily living expenses, healthcare, and rent.
- This tier is recommended for those who rely on CPF as a primary source of retirement income.
3. Enhanced Retirement Sum (ERS)
- Allows individuals to save up to three times the BRS, ensuring the highest monthly payouts.
- Best suited for retirees who prefer a financially independent and comfortable retirement lifestyle.
- Ensures greater long-term financial stability.
New CPF Retirement Sums for 2025
The government has adjusted the CPF Retirement Sums for 2025 to account for inflation and rising costs of living.
| Retirement Tier | Sum in 2023 | Sum in 2025 | Monthly Payout (2025) |
|---|---|---|---|
| Basic Retirement Sum (BRS) | SGD 96,000 | SGD 105,000 | SGD 900 – 1,000 |
| Full Retirement Sum (FRS) | SGD 192,000 | SGD 210,000 | SGD 1,800 – 2,000 |
| Enhanced Retirement Sum (ERS) | SGD 288,000 | SGD 315,000 | SGD 2,600 – 2,800 |
The CPF LIFE scheme ensures that individuals who meet at least the BRS requirement can receive SGD 900 to SGD 1,000 per month, while those who reach the ERS level can receive up to SGD 2,800 monthly.
Retirement Age Adjustments in Singapore
To support longer working lives and increase CPF savings, the Singapore government has announced a gradual increase in the retirement age:
| Year | Retirement Age |
|---|---|
| 2025 | 63 years |
| 2026 | 64 years |
| 2030 | 65 years |
This change is aligned with Singapore’s rising life expectancy, which is projected to exceed 85 years by 2040. Extending the retirement age allows workers to continue earning and saving for retirement, ensuring they have sufficient funds for their later years.
New CPF Benefits for Self-Employed Workers
Previously, self-employed individuals such as freelancers, gig workers, and entrepreneurs had limited access to CPF benefits. In 2025, the government introduced new policies to ensure fairer retirement savings opportunities for them.
Key Updates for Self-Employed Workers
- CPF Monthly Payouts: Eligible self-employed workers can now receive CPF payouts ranging from SGD 200 – 400 per month.
- Voluntary Contributions: Encouraged to contribute to Ordinary, MediSave, and Special Accounts to build a stronger retirement fund.
This update creates a more inclusive CPF system, ensuring that all workers, regardless of employment type, can secure their financial future.
Projected CPF Retirement Sum Increases (2025-2027)
The CPF Board has outlined plans to progressively increase the Enhanced Retirement Sum (ERS) cap in the coming years.
| Year | ERS Cap | Estimated Monthly Payout |
|---|---|---|
| 2025 | SGD 426,000 | SGD 3,300 |
| 2026 | SGD 440,800 | SGD 3,440 |
| 2027 | SGD 456,400 | SGD 3,550 |
By 2027, retirees who save up to the ERS limit will be able to receive up to SGD 3,550 per month, ensuring a higher quality of life in retirement.
CPF Withdrawal and Transfer Policy Updates
From 2025 onwards, CPF will introduce revised withdrawal and fund transfer policies:
- Merging the Special Account (SA) into the Retirement Account (RA) to optimize long-term interest accumulation.
- Allowing Ordinary Account funds exceeding the Full Retirement Sum (FRS) to be withdrawn freely.
- Ensuring retirees have long-term savings security while maintaining access to flexible funds.
How to Prepare for CPF Changes
To make the most of CPF updates, Singaporeans should take proactive steps:
1. Increase CPF Contributions
- Consider voluntary top-ups to meet the new CPF Retirement Sums.
- Higher contributions mean higher monthly payouts in retirement.
2. Choose the Right CPF LIFE Plan
CPF LIFE offers three payout plans:
- Standard Plan – Fixed monthly payouts.
- Escalating Plan – Payouts increase over time.
- Basic Plan – Lower initial payouts but higher savings retention.
Choosing the best plan ensures long-term financial stability.
3. Stay Updated on CPF Changes
- Attend CPF workshops and financial planning seminars.
- Keep track of CPF updates via the official website: www.cpf.gov.sg.
Frequently Asked Questions (FAQs)
1. How much is the CPF Retirement Sum in 2024?
- BRS: SGD 105,000 (SGD 900 – 1,000 per month).
- FRS: SGD 210,000 (SGD 1,800 – 2,000 per month).
- ERS: SGD 315,000 (SGD 2,600 – 2,800 per month).
2. When does the retirement age increase?
- 2026: Increases to 64 years.
- 2030: Will be 65 years.
3. Can self-employed workers receive CPF payouts?
Yes, eligible self-employed workers can receive SGD 200 – 400 per month under the new scheme.
4. How can I check my CPF savings and payouts?
Visit www.cpf.gov.sg and log in to your CPF account.
For More Information Click Here