Singapore’s Central Provident Fund (CPF) is the bedrock of the nation’s social security system. From January 2025, the CPF Board will roll out eight key policy changes to help members grow their savings and better meet their retirement, housing, and healthcare needs.
1. Closure of the Special Account for Senior Members
From mid-January 2025, the Special Account for CPF members aged 55 and above will no longer accept new contributions.
- Members will receive notifications via letter, email, or SMS.
- This change will not affect members’ access to higher long-term interest rates, as they can transfer their funds to the Retirement Account.
2. Higher Retirement Account Savings Limit
From 2025, the Retirement Account savings cap will increase from three times the Basic Retirement Sum (BRS) to four times, reaching SGD 426,000.
- This means that by age 65, members who hit this cap will receive significantly higher monthly payouts.
3. Expansion of the Retirement Account Matching Grant Scheme
- Broader eligibility: Previously open only to seniors aged 55 to 70, this scheme will now extend to those above 70.
- Higher government matching contributions:
- Annual matching cap will rise from SGD 600 to SGD 2,000.
- Lifetime matching cap will be SGD 20,000.
4. Enhanced Silver Support Scheme
- The Silver Support Scheme provides cash assistance to low-income seniors aged 65 and above with limited family support.
- Higher income eligibility: The household per capita income ceiling will rise from SGD 1,800 to SGD 2,300.
- Larger payouts:
- Eligible seniors will receive quarterly payments of between SGD 215 and SGD 1,080, a 20% increase from current rates.
5. Higher Workfare Income Supplement (WIS) Payouts
- To keep up with rising wages, enhancements to the WIS will benefit around 500,000 Singaporean workers.
- For low-income workers aged 30 to 34, the maximum annual payout will increase from SGD 2,100 to SGD 2,450.
- Older workers will receive higher payouts, while persons with disabilities, regardless of age, can receive up to SGD 4,900 annually.
6. CPF Contributions for Platform Workers
- From 2024, platform workers aged 30 and above who opt in for CPF contributions will see their platform operators contributing as well.
- Contribution rates will gradually increase each year until 2029, when they will match those of employees in other industries.
7. Increase in CPF Monthly Salary Ceiling
- September 1, 2023: Raised from SGD 6,000 to SGD 6,300.
- January 1, 2024: Increased to SGD 6,800.
- January 1, 2025: Will rise further to SGD 7,400.
- The annual salary ceiling remains at SGD 102,000, with no changes to the additional wage ceiling or CPF annual contribution cap.
8. Higher CPF Contribution Rates for Senior Employees
- For CPF members aged 55 to 65, contribution rates will rise by 1.5%, bringing the total contribution rate to between 23.5% and 32.5%.
- While this may slightly reduce take-home pay in the short term, it will ensure greater financial security in retirement.
These enhancements further strengthen Singapore’s CPF system, ensuring that citizens can enjoy greater financial stability in their retirement years, especially benefiting older and lower-income individuals.