Singapore’s Central Provident Fund (CPF) is making changes to its structure by closing the Special Account (SA) for people over 55 years old. The transition started in December 2025 and will finish by mid-January 2026. When 2026 arrives the effects of this change will be clear. The main focus now is on how people manage their retirement savings. This new approach simplifies the system & allows many people to build bigger monthly payouts more easily.
Understanding the Special Account
The SA used to work as an account where you could store part of your CPF contributions for retirement. It earned interest rates of up to 4% or sometimes even higher. It also gave you flexibility because you could access it after reaching 55 years old. Now the focus has shifted toward moving your savings into the Retirement Account (RA) for an extended period. This approach aims to provide better financial security over time.
Why the Phase-Out Happened
The government shut down the SA to save money & make it more balanced. This means that flexible funds will now earn less interest while retirement funds that are locked away will earn more interest instead. The process started at the beginning of 2025 and the SA was completely closed by the middle of January. People who are 55 years old or older cannot make any new contributions to their SA accounts anymore.
What Happens to Your SA Savings
On the last day the remaining SA balance was first transferred to your RA up to the Full Retirement Sum. The FRS is around S$205800 in 2025. Any excess amount was credited to the Ordinary Account. The OA earns 2.5% interest instead of the previous 4%.
Impact on Interest Rates
RA deposits will keep earning the same high interest rate of up to 4% with a guaranteed minimum floor that has been extended until 2026. Meanwhile OA will receive whatever the current short-term rate happens to be. Members can still claim additional interest bonuses on all their accounts.
Benefits of the Change
The process makes your CPF statement shorter and helps you move more money into your Retirement Account. This gives you regular CPF LIFE payments for the rest of your life. Many people can now add enough money to reach the Enhanced Retirement Sum of $426000 in 2025. This higher amount means they receive a larger monthly pension.
Options After Closure
You have the option to transfer money from your Ordinary Account to your Retirement Account. This transfer cannot be reversed once completed. The benefit is that funds in the Retirement Account earn a higher interest rate & will result in larger payouts when you retire. On the other hand you might prefer to leave the money in your Ordinary Account. This gives you more flexibility since you can use those funds for housing purchases or other approved investments.
Key Differences Before and After Closure
| Key Aspect | Before Account Closure (Up to 2024) | After Account Closure (2025 and Beyond) |
|---|---|---|
| Special Account (SA) Status | Active account earning around 4% interest | Special Account closed for members aged 55+ |
| Allocation of New Contributions | Portion of contributions credited into SA | Contributions redirected to Retirement Account (RA) or Ordinary Account (OA) |
| Withdrawable Balances | Withdrawals allowed from both SA and OA | Withdrawals mainly available from OA balances |
| Retirement Savings Structure | Retirement savings split between SA and RA | Retirement funds consolidated into RA up to applicable limits |
| Enhanced Retirement Sum Top-Up Limit | Up to 3 times the Basic Retirement Sum (BRS) | Increased to 4 times BRS (S$426,000 applicable in 2025) |
| Interest on Excess Funds | Excess savings in SA earned about 4% interest | Excess balances moved to OA earning approximately 2.5% |
How It Affects 2026 and Beyond
The 4% minimum interest rate will apply throughout 2026 & the following years. As salary limits & interest rates rise total savings continue to grow. Members under 55 will retain their Special Account. The gradual removal of the CPF Special Account supports retirement preparation by keeping dedicated funds secure & growing while providing flexibility for other financial needs. Access your CPF account now to check transfers, calculate your retirement income or consider adding more to your Retirement Account. Plan ahead to ensure your retirement is financially secure.
