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CPF Planning
Master your Central Provident Fund to maximize retirement savings, housing options, and healthcare security. Your comprehensive CPF optimization guide.
Understanding CPF
The Central Provident Fund (CPF) is Singapore's comprehensive social security system that covers retirement, healthcare, and housing needs. It's a mandatory savings scheme for all Singapore citizens and permanent residents who are employed.
Total contribution rate (employee + employer)
Interest rates (OA: 2.5%, SA/MA: 4%, up to 6% with extra interest)
Monthly salary ceiling (2026)
Why CPF Matters
CPF offers guaranteed, risk-free returns that beat most fixed deposits. Smart CPF planning can add hundreds of thousands to your retirement fund through the power of compound interest.
The Three CPF Accounts
Ordinary Account
For housing, insurance, investment, and education
Special Account
For retirement and retirement-related investments only
MediSave Account
For hospitalization, approved medical insurance, and healthcare needs
CPF Contribution Rates (2026)
| Employee Age | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| 55 to 60 | 15% | 14.5% | 29.5% |
| 60 to 65 | 9.5% | 10% | 19.5% |
| 65 to 70 | 6% | 7.5% | 13.5% |
| Above 70 | 5% | 5% | 10% |
Monthly Salary Ceiling
CPF contributions are calculated on monthly wages up to $8,000 (effective Jan 2026). Wages above this ceiling are not subject to CPF contributions.
CPF Interest Rates
Base Interest Rates
- Ordinary Account (OA):2.5% p.a.
- Special Account (SA):4.0% p.a.
- MediSave Account (MA):4.0% p.a.
- Retirement Account (RA):4.0% p.a.
Extra Interest
- First $60,000: Extra 1% on combined balances
- Age 55 and above: Additional 1% on first $30,000
- OA cap: Extra interest on OA capped at $20,000
- Maximum effective rate: Up to 6% p.a.
CPF Optimization Strategies
1. OA to SA Transfer
Transfer funds from OA (2.5%) to SA (4%) for higher returns. The 1.5% difference compounds significantly over time.
Note: This is irreversible. Ensure you don't need the funds for housing.
2. Maximize Extra Interest
Ensure you have at least $60,000 in combined CPF balances to earn the extra 1% interest. Top up if needed.
Benefit: $60,000 earning extra 1% = $600 extra per year, risk-free.
3. Voluntary Cash Top-Ups
Top up your SA or RA to earn 4% interest AND get tax relief up to $8,000 per year (self) + $8,000 (loved ones).
Double benefit: Tax savings + guaranteed 4% returns.
4. Minimize Housing Drain
Consider using less CPF for housing to keep more earning 4% in SA. Every dollar used for housing loses the compound growth.
Strategy: Use cash for downpayment if possible, preserve CPF for retirement.
CPF Top-Ups & Tax Relief
Self Top-Up
- • Tax relief up to $8,000 per year
- • Top up to SA (below 55) or RA (55 and above)
- • Up to current Full Retirement Sum
- • Earn 4% guaranteed interest
Loved Ones Top-Up
- • Additional tax relief up to $8,000
- • For spouse, parents, parents-in-law, grandparents, siblings
- • Help family build retirement savings
- • Total potential tax relief: $16,000
Tax Savings Example
If you're in the 15% tax bracket and top up $16,000 (max), you save $2,400 in taxes. Plus you earn 4% interest on the top-up. That's an immediate 15% + 4% return!
What CPF Can Be Used For
Ordinary Account
- • HDB and private property purchase
- • Home loan repayment
- • CPFIS investments
- • Education (approved institutions)
- • Insurance premiums
Special Account
- • Retirement savings (CPF LIFE)
- • CPFIS investments (limited options)
- • Cannot be used for housing
- • Transferred to RA at age 55
MediSave Account
- • Hospitalization bills
- • MediShield Life and IP premiums
- • Approved outpatient treatments
- • Healthcare for dependants
Retirement Account
- • Created at age 55
- • Funds CPF LIFE payouts
- • Monthly income from age 65
- • Payouts for life
Frequently Asked Questions
Can I withdraw my CPF before 55?
Generally no, except for specific purposes (housing, approved investments, medical) or special circumstances (leaving Singapore permanently, terminal illness). CPF is designed for retirement.
What happens to my CPF if I leave Singapore?
If you're a PR giving up residency, you can withdraw after being away for 2+ months. Citizens leaving permanently can withdraw the full balance after renouncing citizenship.
Should I use CPF for housing or cash?
Each dollar of CPF used for housing loses the 4% compound growth potential. If you can afford cash payments, using cash and preserving CPF often results in more wealth at retirement.
How do I check my CPF balance?
Log in to the CPF website (cpf.gov.sg) or mobile app using your Singpass. You can view balances, transaction history, and perform various transactions online.
Optimize Your CPF Today
Get personalized CPF planning strategies tailored to your age, goals, and financial situation. Our certified advisors will help you maximize your CPF benefits.