Key CPF Changes in 2025 and How to Grow Your Savings

The Central Provident Fund (CPF) is Singapore’s mandatory social security savings scheme, designed to help citizens and permanent residents save for their retirement, housing, and healthcare needs. Both employees and employers contribute a portion of monthly salaries into CPF accounts, which act as a financial safety net for the future.

Starting in 2025, the CPF Board is rolling out significant changes to enhance savings and support for members. Here’s a quick breakdown of the updates:

  1. Special Account Closure for Members Aged 55+ From the second half of 2025, CPF members aged 55 and above will see their Special Account (SA) closed, with funds transferred to their Retirement Account (RA) or Ordinary Account (OA).
  2. Higher Enhanced Retirement Sum (ERS) Starting January 1, the ERS will increase to S$426,000—four times the Basic Retirement Sum—allowing members to enjoy higher monthly payouts in retirement.
  3. Enhanced Matched Retirement Savings Scheme (MRSS) The matching grant cap rises to S$2,000 per year, and the age cap of 70 will be removed, benefiting about 800,000 members aged 55 and above.
  4. Increased Silver Support Scheme Payments Quarterly payouts will increase by 20%, with the income threshold raised to S$2,300 per person.
  5. Workfare Income Supplement (WIS) Adjustments The income cap for WIS will rise to S$3,000, and eligible workers can now receive up to S$4,900 annually in support.
  6. CPF Contributions for Platform Workers CPF contributions will gradually increase for platform workers born after January 1, 1995, reaching 20% by 2029.
  7. Higher CPF Monthly Salary Ceiling The salary ceiling will rise to S$7,400, boosting savings through higher CPF contributions from employers and employees.
  8. Increased CPF Contribution Rates for Senior Workers CPF contribution rates will go up by 0.5% for employers and 1% for employees aged 55 to 65, with a one-year offset to support businesses.

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