Singapore’s 2025 Retirement Age Changes: Singapore is implementing major changes to its retirement age and Central Provident Fund (CPF) system in 2025, with the goal of improving retirement adequacy and adapting to the country’s aging population. Whether you’re an employee approaching retirement, a younger worker planning for the future, or an employer navigating policy changes, these updates affect you directly.
Let’s break down what’s changing, how it works, and what it means for your CPF, income, and retirement future.
Singapore’s 2025 Retirement Age Changes
| Topic | Details |
|---|---|
| Retirement Age (2025) | 63 years |
| Re-employment Age (2025) | 68 years |
| New CPF Contribution Rate (Age 55–65) | Up to 32.5% total (Employer + Employee) |
| CPF Salary Ceiling (2025) | Increased to SGD 7,400 per month |
| Special Account (SA) for 55+ | Closed; funds moved to RA and OA |
| Enhanced Retirement Sum (ERS) | Raised to SGD 426,000 |
| MRSS Matching Grant | Increased to SGD 2,000/year with no age cap |
| Official Website | cpf.gov.sg |
The Singapore 2025 retirement and CPF changes mark a significant step toward ensuring Singaporeans can retire more comfortably and sustainably. With higher contribution rates, increased retirement ages, and more flexible savings schemes, individuals now have better tools to secure their financial future.
What Is Changing in 2025?
1. Higher Retirement and Re-employment Age
To encourage older workers to stay active in the workforce, the government is progressively raising both the retirement and re-employment ages:
- 2024: Retirement age at 63, re-employment age at 68
- 2026: Retirement age will rise to 64, re-employment to 69
- 2030: Final target – retirement at 65, re-employment at 70
This means you can continue working with legal protection from being dismissed due to age and continue earning and contributing to CPF for longer.
2. Increased CPF Contributions for Older Workers
Starting 1 January 2025, CPF contribution rates for workers aged above 55 to 65 will rise:
- Ages 55 to 60:
- Employer: 15.5% (up from 15%)
- Employee: 17% (up from 16%)
- Total: 32.5%
- Ages 60 to 65:
- Employer: 12% (up from 11.5%)
- Employee: 11.5% (up from 10.5%)
- Total: 23.5%
These changes help senior employees accumulate more savings during their final years in the workforce.
Key CPF System Changes to Know
Closure of Special Account (SA) for Members Aged 55+
From January 2025, the Special Account (SA) will be closed for CPF members aged 55 and above.
- Funds will be transferred to the Retirement Account (RA) up to the Full Retirement Sum (FRS)
- Any extra money that is withdrawable will go into your Ordinary Account (OA)
This move simplifies the CPF structure and ensures savings are aligned directly with retirement income goals.
Enhanced Retirement Sum (ERS) Increased
Currently, the Enhanced Retirement Sum (ERS) is 3x the Basic Retirement Sum (BRS). From 2025, the ERS will increase to 4x the BRS, or SGD 426,000.
If you top up to this amount, your CPF LIFE monthly payouts could be as high as SGD 3,300/month from age 65.
Higher CPF Salary Ceiling
Currently, only salaries up to SGD 6,800/month attract CPF contributions. From 1 January 2025, this ceiling will rise to SGD 7,400/month, and is expected to go up to SGD 8,000 by 2026.
This change allows more CPF savings for middle-to-high income earners.
Matched Retirement Savings Scheme (MRSS) Enhanced
Two important enhancements to the MRSS will apply from 2025:
- Matching grant cap raised from SGD 600 to SGD 2,000 per year
- Age cap removed, so all Singaporeans who meet the eligibility criteria can benefit
The MRSS encourages family members and friends to help build each other’s RA savings, and the government matches those contributions.
Singapore’s 2025 Retirement Age Changes: How Do These Changes Affect You?
For Employees
- You can now stay employed longer with legal safeguards
- CPF contributions rise, meaning more savings and higher payouts at retirement
- More room to top up your RA, especially with the new ERS cap
- Higher salary ceiling = more CPF on your full earnings
For Employers
- You will contribute slightly more CPF for senior workers, which could raise payroll costs
- But you retain experienced talent longer and contribute to their retirement wellbeing
- Stay compliant with revised CPF rates and retirement policies
For Self-Employed & CPF Voluntary Contributors
- Use the increased MRSS cap to your advantage if eligible
- Consider topping up your RA to benefit from CPF LIFE payouts
- Plan ahead for CPF structural changes like SA closure
Expert Tip: Use CPF Planning Tools
The CPF Board offers helpful tools such as the CPF Retirement Planning Service, CPF LIFE Estimator, and myCPF Mobile App to calculate your future payouts and adjust your plans.
Visit cpf.gov.sg for official guides.
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FAQs on Singapore’s 2025 Retirement Age Changes
Q1. Will the Special Account (SA) be removed for everyone in 2025?
Only for members aged 55 and above. Younger members will retain their SA.
Q2. Can I still top up my SA after age 55?
No. After 55, top-ups go to the Retirement Account (RA) instead.
Q3. Will CPF LIFE payouts increase due to the ERS rise?
Yes. If you top up to the new ERS of SGD 426,000, payouts may reach SGD 3,300/month from age 65.
Q4. What if my salary exceeds the new CPF ceiling?
CPF contributions will apply only to the first SGD 7,400/month (from 2025). The excess is not subject to CPF.
Q5. How do I know if I’m eligible for MRSS?
Check your eligibility on the CPF website’s MRSS page.
