Singapore has confirmed that the CPF Special Account will be phased out from 2026 for members aged 55 and above. This marks a major shift in how retirement savings are structured, aimed at simplifying CPF accounts while strengthening retirement payouts.
Why the Special Account Is Being Phased Out
The CPF system already creates a Retirement Account when a member turns 55. Maintaining a separate Special Account beyond this age often led to confusion and uneven interest treatment. The phase-out is intended to streamline CPF balances and align all retirement savings under a single structure.
What Happens to Your Special Account Savings
After the phase-out, funds from the Special Account will be transferred to the Retirement Account, up to the applicable retirement sum. Any remaining amount beyond the required sum may be moved to the Ordinary Account, depending on CPF rules in effect at that time.
Impact on Interest Earnings
CPF Special Account savings traditionally earn higher interest. After transfer, funds in the Retirement Account will continue to earn attractive interest rates, ensuring members do not lose out on long-term retirement growth despite the account restructuring.
How This Affects Members Turning 55
Members turning 55 from 2026 onward will see their CPF savings consolidated more clearly. The Retirement Account will become the main account for retirement planning, making it easier to track balances and projected payouts.
What CPF Members Should Do Now
CPF members are encouraged to review their retirement planning early and understand how their savings will be allocated after 55. Keeping CPF contributions and top-ups aligned with retirement goals will help maximise future monthly payouts.
Conclusion
The CPF Special Account phase-out in 2026 is a structural change aimed at simplifying retirement savings while protecting members’ long-term interests. By understanding how savings are transferred and managed after 55, CPF members can plan their retirement with greater clarity and confidence.