Congratulations on your PR status! Understanding Singapore's Central Provident Fund (CPF) is crucial for maximizing your financial benefits. This comprehensive guide explains everything you need to know about CPF accounts, contribution rates, MediSave, retirement planning, and how to make the most of Singapore's world-class social security system.
Key CPF changes you need to know
$8,000
OW Ceiling
(Jan 2026)
+1.5%
Senior Rate Increase
(Jan 2026)
$426K
Enhanced RS
(4x BRS from 2025)
SA Closure
For 55+ Members
(From 2025)
The Foundation
Understanding Singapore's Central Provident Fund - your comprehensive savings system for retirement, healthcare, and housing.
The Central Provident Fund (CPF) is Singapore's comprehensive social security savings scheme. As a new PR, both you and your employer will contribute a percentage of your monthly salary to your CPF accounts. Think of it as a forced savings program that ensures you have funds for:
Pay for your HDB flat or private property downpayment and mortgage
Cover medical expenses, hospitalisation, and insurance premiums
Receive monthly payouts for life through CPF LIFE from age 65
As a foreigner on a work pass, you received 0% employer CPF contributions. Now as a PR, your employer contributes up to 17% of your salary into YOUR CPF accounts. On a $10,000/month salary, that's $1,700/month in additional money you weren't getting before!
| Administrator | CPF Board (Government) |
| Who Must Contribute | All employed SC/PRs |
| Total Rate (under 55) | 37% of salary |
| Employee Share | 20% |
| Employer Share | 17% (FREE!) |
| Salary Cap (2025) | $7,400/month |
| Interest Rate | 2.5% - 6% p.a. |
📌 Note: New PRs in their 1st and 2nd year have graduated contribution rates. Full rates apply from the 3rd year onwards.
Visual Overview
Understanding the CPF ecosystem - from your monthly contributions to retirement payouts and everything in between.
Starting Point
Monthly Salary
Capped at $7,400 (2025) / $8,000 (Jan 2026)
20%
Employee Contribution
Deducted from your salary
17%
Employer Contribution
FREE - Extra on top of your salary!
37% Total Contribution Split Into 4 Accounts (For Age ≤55)
OA
23%
Housing/Education
2.5% interest
SA
6%
Retirement
4% interest
MA
8%
Healthcare
4% interest
RA
-
Created at 55
4% interest
Use OA for property purchase
Use MA for medical needs
Build for your golden years
At Age 65
Receive monthly income for life based on your Retirement Account balance
Your MediSave can pay for premiums of these important insurance schemes:
Understanding Your Money
Your CPF contributions are split into different accounts, each with specific purposes and interest rates.
Most flexible account. Can be used for:
Locked for retirement. Higher interest:
Healthcare expenses only:
For CPF LIFE monthly payouts:
Employee contributes 20% (from your salary) + Employer contributes 17% (additional!) = 37% total
Know Your Rates
Contribution rates vary based on your age and PR status. New PRs have graduated rates for the first 2 years.
| Age Group | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| 55 to 60 | 17% | 15% | 32% |
| 60 to 65 | 11.5% | 11% | 22.5% |
| 65 to 70 | 7.5% | 9% | 16.5% |
| Above 70 | 5% | 7.5% | 12.5% |
If you're a new PR, you'll have lower contribution rates during your first 2 years. This helps you adjust to CPF contributions gradually.
💡 Pro Tip: You can opt for full contribution rates from day one if you prefer to maximize your CPF savings earlier. Discuss with your employer.
CPF contributions are capped at the Ordinary Wage Ceiling of $6,800/month. If you earn more than this, only the first $6,800 attracts CPF contributions.
Example: If you earn $15,000/month, your CPF contribution is calculated on $6,800, not $15,000. Maximum monthly CPF contribution = $6,800 × 37% = $2,516/month.
Grow Your Savings
Your CPF savings earn guaranteed interest rates that are higher than most bank savings accounts.
CPF members earn extra interest on top of base rates:
On first $60,000 of combined balances (capped at $20,000 for OA)
On first $30,000 of combined balances (capped at $20,000 for OA)
+1% extra on next $30,000
💡 Result: You can earn up to 5% on OA and 6% on SA/MA/RA for the first $60,000!
These rates are guaranteed floor rates backed by the Singapore government. Compare this to typical Singapore bank savings accounts offering 0.05-0.5% interest. Your CPF money grows 5-80 times faster than typical bank savings!
Healthcare Protection
As a new PR, you gain access to Singapore's comprehensive healthcare financing system.
Your healthcare savings
MediSave is the portion of your CPF set aside for medical expenses. It can be used for:
Maximum MediSave balance that earns extra interest
Basic hospitalisation insurance
MediShield Life is a compulsory national health insurance that covers large hospital bills. As a new PR, you're automatically enrolled.
⚠️ Important: MediShield Life only covers basic B2/C wards. For private hospital or higher ward classes, you need an Integrated Shield Plan (ISP).
Recommended for all new PRs
Upgrade your MediShield Life to cover private hospitals and higher ward classes. Premiums can be paid via MediSave.
CareShield Life provides basic disability coverage ($600/month). Supplement it for better protection.
Your Golden Years
CPF ensures you have a steady income stream during retirement through the CPF LIFE scheme.
$106,500
Minimum required in RA at 55
Est. monthly payout from 65:
~$870-$940/month
$213,000
Standard target for most people
Est. monthly payout from 65:
~$1,570-$1,720/month
$426,000
For higher monthly payouts
Est. monthly payout from 65:
~$3,130-$3,430/month
CPF Lifelong Income For the Elderly (CPF LIFE) is a national annuity scheme that provides you with monthly payouts for life, starting from age 65. It ensures you never outlive your retirement savings.
Retirement Account Created
SA + OA transferred to RA (up to FRS)
CPF LIFE Payouts Begin
Monthly income for life starts (can defer to 70)
Lifetime Payouts
Payouts continue for life, no matter how long
If you don't need the money immediately at 65, you can defer your CPF LIFE payouts up to age 70. For each year you defer, your monthly payout increases by approximately 7%.
Example: If your payout at 65 would be $1,500/month, deferring to 70 could increase it to approximately $2,100/month - that's 40% more income for life!
Your Home
Your Ordinary Account can be used for property purchase, reducing your cash outlay significantly.
Use OA for up to 25% of property value (HDB) or 20% (private)
Service your housing loan with monthly OA contributions
Cover transaction costs with your OA savings
Mortgage insurance to protect your family if something happens to you
Can withdraw up to Valuation Limit (VL) = lower of purchase price or valuation
For leasehold properties, remaining lease must cover you until age 95
When you sell, you must refund CPF used + accrued interest (what you would have earned)
⚠️ Pro Tip: Don't over-use CPF for housing! You need to balance housing needs with retirement savings. Using a mix of CPF and cash for housing is often recommended.
Stay informed about the latest CPF policy changes that affect your contributions and benefits.
Currently in effect
Increased from $6,800. Maximum CPF contributions apply to this salary cap.
Now 4x Basic Retirement Sum (previously 3x). Higher ceiling for retirement savings.
Special Account will be closed for members aged 55 and above. SA savings transferred to RA (up to FRS) and OA.
Self-employed platform workers (food delivery, ride-hailing) begin contributing to CPF from 2025.
Government matches cash top-ups to RA (up to $2,000/year) for eligible seniors 55+ with lower CPF savings.
Coming January 2026
Final increase in the phased adjustments. Maximum contributions on salary up to $8,000.
Higher CPF rates for workers aged 55-70. More savings for retirement.
• Age 55-60: 30.5% → 32%
• Age 60-65: 21.5% → 23%
• Age 65-70: 15.5% → 17%
Minimum retirement age increases from 63 to 64. Re-employment age rises from 68 to 69.
Annual payout growth doubles from 2% to 4%. More comprehensive long-term care coverage.
The 4% minimum interest rate for SA/MA guaranteed until end of 2026.
Higher salary ceiling means more CPF contributions, especially beneficial for higher earners. On $8,000 salary: up to $2,960/month total CPF.
Enhanced Retirement Sum (4x BRS) allows you to save more for higher CPF LIFE payouts. More flexibility in retirement planning.
Upgraded CareShield Life payouts (4% growth) provide better long-term care coverage. Learn about CareShield supplements →
Expert Advice
Maximize your CPF benefits with these insider strategies.
As a new PR, you can opt for full CPF contribution rates from day one instead of graduated rates. This means more employer contributions (free money!) and faster CPF growth. Discuss this option with your HR.
Voluntary MediSave top-ups qualify for tax relief (up to $8,000). This reduces your taxable income while growing your healthcare savings at 4% interest. Win-win!
Don't rely solely on MediShield Life. Get an Integrated Shield Plan (ISP) for private hospital coverage. Premiums can be paid via MediSave. Apply while young and healthy for lower premiums.
Voluntary top-ups to your SA (or spouse/parents' RA) qualify for tax relief up to $8,000 per person. SA earns 4% interest, and the money grows tax-free until retirement.
CareShield Life's $600/month basic payout may not be enough for quality long-term care. Consider a CareShield Life Supplement early - premiums are lower when you're young and healthy.
Don't use all your CPF for housing! Leave money in your SA for retirement. A mix of CPF and cash for housing ensures you have funds for both your home AND your retirement.
Without a nomination, your CPF goes through intestacy laws. Make a CPF nomination to ensure your savings go to your chosen beneficiaries. It's free and takes 5 minutes online.
Track your CPF balances, view contribution history, and access all CPF services via the official app. Register for Singpass (Singapore's digital ID) to access government services.
Common Questions
Yes, PRs who leave Singapore permanently and renounce their PR status can withdraw their full CPF savings. You'll need to provide proof of leaving Singapore (e.g., renunciation of PR, cancellation of Re-Entry Permit). The process takes about 1-2 weeks after you submit the required documents to CPF Board.
Your CPF continues seamlessly when you convert from PR to Singapore Citizen. All your existing balances remain, and you'll immediately be on full contribution rates (if not already). The main difference is you can no longer withdraw CPF by leaving Singapore, as citizens cannot renounce citizenship while having CPF obligations.
No, CPF can only be used for properties located in Singapore. This includes HDB flats, private residential properties, and Executive Condominiums (ECs). For overseas property purchases, you'll need to use cash or other financing sources.
You can check your CPF balance through the CPF website (my cpf portal) or the CPF mobile app. You'll need to login with your Singpass credentials. The portal shows your balances in each account, contribution history, and estimated CPF LIFE payouts. You can also view your MediShield Life and CareShield Life status.
Yes, through the CPF Investment Scheme (CPFIS). You can invest your OA and SA in approved investments like unit trusts, ETFs, stocks, and bonds. However, note that you must keep a minimum balance before investing (first $20,000 in OA, first $40,000 in SA). Many experts recommend leaving money in CPF to earn the guaranteed interest rather than investing, unless you're confident you can beat 2.5-4% returns consistently.
CPF contributions and interest earned are not taxable in Singapore. Your employer's CPF contribution is also not counted as taxable income (up to the OW ceiling). This makes CPF one of the most tax-efficient savings vehicles in Singapore. However, voluntary contributions above certain limits may not qualify for tax relief.
From healthcare upgrades to retirement planning, we can help you maximize your CPF benefits and build a comprehensive financial plan in Singapore.
Explore our detailed guides on specific CPF schemes
Everything about CPF Lifelong Income For the Elderly - retirement payouts, plan types, payout options, and how to maximise your retirement income.
Read CPF LIFE GuideLearn how to invest your CPF savings through the CPF Investment Scheme - eligible products, risks, requirements, and whether it's right for you.
Read CPFIS Guide