If you have reached 55 years old you can now access the retirement savings you have built up after working hard for over twenty years. Many Singaporeans find this to be an important moment in their lives but it often comes with financial questions. The CPF rules in 2025 offer flexibility while ensuring long-term security so people can plan their savings properly for retirement as living costs & life expectancy continue to rise.
Milestone: Turning 55 in 2025
Reaching the age of 55 marks a key milestone for CPF members, as it becomes the entry point for partial CPF withdrawals. At this stage, savings from your Ordinary Account (OA) and Special Account (SA) are transferred into a newly created Retirement Account (RA), up to the Full Retirement Sum (FRS). From the start of 2025, an important structural change took effect—the Special Account is closed for members aged 55 and above. This move simplifies CPF holdings by consolidating savings into the RA, which earns higher interest, or leaving funds in the more flexible OA.
The intention behind this restructuring is to streamline retirement planning and reduce complexity. However, it also introduces the risk of reduced long-term growth if excess funds above the FRS are withdrawn and spent without adequate planning for future needs.
Singapore Tightens CDC Voucher New Rules : Check How Singapore Residents Avoid Losing S$800
Understanding Retirement Sums
CPF members turning 55 in 2025 should be aware of three retirement sum benchmarks that determine future CPF LIFE monthly payouts starting from age 65. These reference thresholds help members assess how much income they can expect during retirement and guide decisions on whether to top up their accounts for higher lifelong payouts.
| Retirement Sum Category | CPF Amount (2025) | Approx. Monthly CPF LIFE Payout (From Age 65) | Retirement Objective |
|---|---|---|---|
| Basic Retirement Sum (BRS) | Around $106,500 (estimated) | Lower monthly payout covering essential living costs | Designed to meet minimum retirement needs |
| Full Retirement Sum (FRS) | Approximately $213,000 | Estimated $1,600 – $1,700 per month | Provides a more comfortable and stable retirement income |
| Enhanced Retirement Sum (ERS) | $426,000 (up to four times BRS) | Can reach up to $3,300 monthly (illustrative example) | Optional top-up option for higher lifelong CPF payouts |
Age 55 Withdrawal Options
At age 55, withdrawals are permitted under controlled conditions. If your RA savings meet the Full Retirement Sum, any excess funds may be withdrawn from either the OA or RA. Even if the FRS is not met, members are still allowed to withdraw an unconditional amount of $5,000.
Members who own property with sufficient remaining lease may use it as a substitute for meeting the FRS, which can unlock additional cash withdrawals. Most withdrawals are subject to a mandatory 12-hour cooling-off period. The CPF Retirement Dashboard provides clear visibility to help members assess eligibility and make informed decisions.
Early Access Before Age 55 and Special Situations
CPF savings are generally locked in until age 55, with only a few exceptions. Early withdrawals are permitted in cases of permanent incapacity, terminal illness, or permanent departure from Singapore. Foreigners who leave Singapore permanently may qualify for full withdrawal.
All such cases require proper medical or legal documentation. Withdrawals for housing from the OA remain available, but tighter limits and revised rules introduced in 2025 govern how much can be used.
Planning for CPF LIFE Payouts at Age 65
CPF LIFE monthly payouts can commence anytime between ages 65 and 70, providing lifelong income security. Members who choose to defer payouts receive higher monthly amounts, with each year of delay offering an estimated 7% increase.
With the SA closed at age 55, attention should be focused on growing the RA, which earns a stable 4% interest. Members may also consider topping up their RA to enjoy potential benefits under schemes such as the Matched Retirement Savings Scheme.
The 2025 CPF changes are designed to balance present-day flexibility with long-term financial security. By understanding these rules and reviewing your CPF dashboard regularly, you can make smarter decisions and build a more secure retirement.
