Our 55th birthday is a significant CPF milestone. This is when our Retirement Account (RA) is created and our Special Account (SA) is closed.
It is also the first time we can make a lump-sum withdrawal from our CPF savings. We can generally withdraw at least $5,000, or more if we have CPF savings above the required retirement sum.
More importantly, the savings set aside in our Retirement Account will form the foundation of our monthly retirement payouts.
So, what is different about our CPF Retirement Account, and what happens to our savings when we turn 55?
Read Also: How Much Can You Withdraw From Your CPF Account At Age 55?
CPF Retirement Account Holds Our Retirement Sum And Forms The Basis Of Our CPF LIFE Payouts
Throughout our working lives, our CPF contributions are allocated to our Ordinary Account (OA), Special Account (SA) and MediSave Account (MA).
When we turn 55, our Retirement Account is automatically created. Savings from our SA, followed by our OA, are transferred into our RA up to our applicable Full Retirement Sum (FRS). Our SA is then closed, with any remaining SA savings transferred to our OA.
The amount in our RA will form the basis of our eventual CPF LIFE or Retirement Sum Scheme payouts.
We can start receiving monthly payouts from our payout eligibility age, which is currently 65. We may also defer the start of our payouts until age 70. For every year we defer, our monthly payouts may increase by up to 7%.
As our RA savings are intended to support us during retirement, they cannot be used for housing, healthcare or other purposes. We can continue using our OA for eligible housing needs and our MA for approved healthcare expenses.
Read Also: CPF LIFE VS Retirement Sum Scheme: What’s The Difference?
We Can Top Up More (Up To Our ERS) And Earn Up To 6% P.A. Interest In Our Retirement Account
Similar to our Special and MediSave Accounts, our savings in our Retirement Account earn a higher interest rate at up to 6% p.a. This additional interest will help us build our retirement nest egg and lead to higher retirement payouts.our
If we are aged 55 and above, we will earn an additional 1% extra interest on the first $30,000 of their combined balances (with up to $20,000 from the Ordinary Account). This is paid over and above the current 1% extra interest that is earned on the first $60,000 of their combined balances.Before age 55
Source: CPF
To take advantage of the interest rate, we can also choose to top up more to our Retirement Account. Prior to 55 years old, the maximum we can contribute to our CPF accounts is up to the Full Retirement Sum (FRS). Upon reaching 55, this maximum is increased to the Enhanced Retirement Sum (ERS).
The FRS is twice the Basic Retirement Sum (BRS) and is the default amount set aside in our RA. The ERS is twice the prevailing FRS and represents the maximum amount members aged 55 and above can voluntarily top up their RA to in 2026.
For members who turn 55 in 2026, the retirement sums are:
| Retirement Sum | Amount In 2026 |
|---|---|
| Basic Retirement Sum (BRS) | $110,200 |
| Full Retirement Sum (FRS) | $220,400 |
| Enhanced Retirement Sum (ERS) | $440,800 |
For example, if we turn 55 in 2026, our estimated CPF LIFE payout at 65 is $1,780 under the Standard Plan if our RA is at the FRS of $220,400. If we top up to the ERS of $440,800, our estimated CPF LIFE payout will be $3,440
Read Also: BRS, FRS, ERS: Why There Are 3 CPF Retirement Sums & Why They Increase Every Year
We Do Not Have To Meet The Full Retirement Sum
Not everyone will have enough CPF savings to set aside the FRS when they turn 55.
If our combined SA and OA savings are below the FRS, the available amount, after accounting for any permitted withdrawal, will generally be transferred to our RA. We can still receive monthly retirement payouts based on the savings accumulated, although the payouts will be lower.
Members who meet the CPF LIFE inclusion criteria will be automatically included in CPF LIFE. This generally applies to Singapore Citizens and Permanent Residents born in 1958 or later who have at least $60,000 in retirement savings when their monthly payouts start.
Members can use CPF’s Retirement Payout Planner or monthly payout estimator to obtain a personalised estimate of their retirement income.our
Read Also: Here’s What You Need To Know About Pledging Your Property To Meet The CPF Full Retirement Sum (FRS)
Special Account Savings Are Transferred First To Our Retirement Account
When our Retirement Account is created, there is a sequence in which our CPF savings are transferred to our Retirement Account. Savings in our Special Account are transferred first, followed by our savings in Ordinary Account. Our MediSave savings remain untouched.
This means that if you already accumulated your FRS amount in your SA, this will be transferred to your RA and your OA savings will be untouched. Otherwise, once all your savings in the SA are used, the remaining shortfall to meet up to the FRS will be taken from your OA savings.
Retirement Account Continues To Earn 4% Interest Even When We Start Our CPF LIFE Payouts
RA savings currently earn a base interest rate of 4% per annum. This rate is computed using the 12-month average yield of 10-year Singapore Government Securities plus 1%, subject to the prevailing floor rate.
For the period from 1 July to 30 September 2026, the interest rate for SA, MA and RA savings is 4% per annum. The Government has extended the 4% floor rate until 31 December 2026.
What Happens When We Start CPF LIFE Payouts?
When we join CPF LIFE, part or all of our RA savings will be deducted as the CPF LIFE premium.
These savings remain part of the CPF system and continue to earn the applicable long-term interest rate. Members also continue to receive extra interest on their combined CPF balances, including savings committed to CPF LIFE.
The interest earned is factored into the CPF LIFE scheme and helps support monthly payouts for as long as we live.
Our actual payout will depend on several factors, including:
- The amount of savings committed to CPF LIFE;
- The CPF LIFE plan selected;
- Our age when payouts begin;
- Our sex; and
- Prevailing interest and mortality assumptions.
We can start our payouts at any time from age 65 to 70. If we do not provide CPF Board with instructions, payouts will automatically start at age 70, generally under the CPF LIFE Standard Plan.
Read Also: What Happens To The Interest On Your CPF Balances After Setting Aside Your Retirement Sum At 55?
