Have 2 Or More Children? Why You May Want To Top Up Their CDA Before 1 October 2027

If you have two or more children, it may be worth checking and topping up their Child Development Accounts (CDAs) before 30 September 2027. That is because changes announced at National Day Rally 2026 will standardise the Government’s CDA co-matching cap at $5,000 per child from 1 October 2027.

For existing children, especially second and subsequent children, the current co-matching cap is actually higher than $5,000.

Every Child Will Get The Same CDA Benefits Under The New Scheme

Under the new SG Child Support Package, support will be standardised across birth orders.

For children born from 1 April 2027, the benefits include a $5,000 CDA First Step Grant and up to $5,000 in dollar-for-dollar CDA co-matching.

While this makes the system simpler, it also means that existing children currently have more generous co-matching entitlements than children will receive under the new framework.

Under the current Baby Bonus Scheme, the Government matches parents’ CDA contributions dollar-for-dollar, up to a cap that depends on birth order.

This means a second child can currently receive up to $7,000 in Government matching, while a third or fourth child can receive up to $9,000. For a fifth or subsequent child, the cap is $15,000.

Higher Existing Caps Will Remain Until 30 September 2027

For eligible children born between 1 January 2015 and 31 March 2027, the existing CDA co-matching caps will remain in place only until 30 September 2027. From 1 October 2027, the co-matching cap will be adjusted to $5,000.

The difference is substantial.

A second child with a current $7,000 cap has up to $2,000 more in co-matching entitlement than under the future $5,000 cap. For a third or fourth child, the difference is $4,000. For a fifth or subsequent child, it is as much as $10,000.

Take a family with five children, for example (yes, such families do exist in Singapore). If the parents have not yet used up their children’s existing CDA co-matching entitlements, they could potentially miss out on as much as $20,000 in Government co-matching if they do not make the necessary contributions by 30 September 2027.

This is also a significant change in timing. Previously, parents generally had until the year their child turned 12 to contribute to the CDA and receive Government co-matching. Under the transition to the new scheme, however, parents who want to take advantage of their child’s existing, higher co-matching cap must do so by 30 September 2027.

From 1 October 2027, the cap will be adjusted to $5,000.

Check How Much Co-Matching You Actually Have Left

For families already expecting to spend this money on preschool, healthcare or other approved child-related expenses, bringing forward these contributions could help them secure Government matching that may no longer be available later.

Parents with higher-order children should therefore check how much of their existing co-matching entitlement remains unused. You can check how much your child has received through the Parent Portal Services.

Ironically, parents of a first child do not need to rush to top up their CDA before 30 September 2027. Under the existing Baby Bonus Scheme, the government co-matching cap for a first child is $4,000. From 1 October 2027, this will actually increase to $5,000 under the SG Child Support Package.

Read Also: 6 Ways For Singapore Parents To Maximise The Child Development Account (CDA)

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