CMS Expert Guide to Pensions in Singapore

The Central Provident Fund (CPF) is established by the Central Provident Fund Act 1953 (CPF Act), which sets out the framework for its establishment, contributions, withdrawals and related regulations.

The CPF is a comprehensive national social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, home ownership, family protection and asset enhancement. The fund is jointly supported by employees, employers and the Government. All contributions authorised under the CPF Act are paid into the CPF, and all payments authorised under the CPF Act are paid out of the CPF.

CPF contributions are primarily allocated to four main accounts:

• Ordinary Account (OA): Used for retirement, housing, insurance, investment and education.
• MediSave Account (MA): Used for healthcare expenses and approved medical insurance. MA savings can be used for one’s own and one’s dependants’ hospitalisation, day surgery and certain outpatient expenses. MA savings can also be used to pay the yearly premiums on approved insurance plans including ElderShield, CareShield Life, MediShield Life and other medical insurance offering additional benefits on top of those provided by MediShield Life.
• Special Account (SA): Used for retirement savings and investment in retirement-related financial products below 55 years of age.

Retirement Account (RA): For monthly retirement payouts for ages 55 and above. At 55 years of age, the RA is created and the SA is closed.

CPF contributions are mandatory for both employees who are Singapore Citizens and Singapore Permanent Residents and their employers. Contribution rates vary based on the employee’s age and wage and can range from 12.5% to 37% of the employee’s monthly wages.

One can also make voluntary contributions to their CPF accounts, subject to certain limits. Generally, voluntary contributions cannot exceed the CPF annual limit of SGD 37,740, which includes one’s mandatory CPF contributions for the calendar year. Voluntary contributions in excess of the recipient’s annual limit will be refunded. Employers can also make voluntary contributions to their employees’ CPF accounts, subject to similar limits/restrictions.

Those who are self-employed must make their MediSave contributions in full or be on GIRO monthly deductions under the Self-Employed Scheme in order to make voluntary contributions.

CPF contributions are required on wages payable to any Singapore citizen or permanent resident employee working in Singapore. In other cases, CPF accounts are opened when the CPF Board receives cash top-ups or government grants.

Only the CPF Board operates the CPF.

Yes, contribution rates are specified in the First Schedule of the CPF Act and are subject to periodic adjustments. Depending on one’s age, the CPF contribution rates can range from 12.5% to 37% of one’s monthly wages.

As of 1 January 2025, the contribution rates are as follows (for monthly wages greater than SGD 750):

• Employees aged 55 and below: Employers contribute 17% of the employee’s wages, and employees contribute 20%.
• Employees aged above 55 to 60: Employers contribute 15.5%, and employees contribute 17%.
• Employees aged above 60 to 65: Employers contribute 12%, and employees contribute 11.5%.
• Employees aged above 65 to 70: Employers contribute 9%, and employees contribute 7.5%.
• Employees aged above 70: Employers contribute 7.5%, and employees contribute 5%.

These contribution rates are subject to change and will be raised gradually over the next decade for Singaporean and Permanent Resident workers aged above 55 to 70. For instance, an increase for workers aged 55–65 (+1.5%) is scheduled to take effect from 1 January 2026. Employers will be provided a one-year transition offset to mitigate the rise in business costs due to this increase.

Besides employment contributions, CPF accounts are also opened when the CPF Board receives cash top-ups or government grants.

No.

7. What age are benefits taken?

Withdrawal of accumulated CPF savings can only be done from age 55, subject to setting aside the Full Retirement Sum (FRS) in one’s RA. Generally, upon turning 55, one can withdraw at least SGD 5,000 or any amount in excess after setting aside the FRS. If one is born in 1958 and after, they can withdraw an additional amount of up to 20% of their retirement savings when they turn 65.

After age 65, one can apply to start receiving lifelong monthly payouts out of their RA savings under the CPF LIFE scheme.

Cash top-ups or CPF transfers, as well as government grants such as CPF LIFE Bonus or Deferment Bonus, cannot be withdrawn as they are designed to boost retirement payouts.

Upon death, one’s CPF savings will ordinarily be paid out and distributed. If a CPF nomination is made, it will be distributed to the nominee(s) in the proportion stated. Where CPF nominations are not made, the CPF savings will be transferred to the Public Trustee for distribution following the intestacy or Muslim inheritance laws of Singapore.

Persons who opt for private pension schemes, such as those provided by banks, will bear the costs.

No. There are no specific registration requirements.

The CPF Cash Top-up Relief is a form of tax relief granted to Singapore Citizens/Permanent Residents who have made cash top-ups to their own CPF Special or Retirement Account, or to those of their family members, to meet retirement needs.

The CPF Cash Top-up Relief is granted automatically to those eligible, based on records sent to the Inland Revenue Authority of Singapore (IRAS) by the CPF Board, provided the individual has instructed the CPF Board to claim tax relief in their top-up application.

Compulsory CPF contributions relating to employment in Singapore are not taxable. Voluntary CPF contributions made by the employer relating to employment, however, are taxable.

Under the CPF Investment Scheme, which allows individuals to invest their OA and SA savings, investment profits, interest earned from investments and dividends are not taxable.

12. Are benefits taxed?

CPF savings withdrawn from CPF accounts are not taxable.

However, to ensure everyone fulfils their tax obligations and has sufficient coverage under their MediShield Life or CareShield Life schemes, the CPF Board may recover any unpaid taxes or MediShield Life or CareShield Life premiums from CPF savings being withdrawn.

No.

The Ordinary Wage Ceiling limits the amount of Ordinary Wages (for example, monthly salaries) that attract CPF contributions in a calendar month for all employees. The Ordinary Wage Ceiling is frequently reviewed and is subject to change. For instance, the Ordinary Wage Ceiling has been adjusted as follows:

• From 1 Jan 2016 to 31 Aug 2023: SGD 6,000
• From 1 Sep to 31 Dec 2023: SGD 6,300 (+SGD 300)
• From 1 Jan to 31 Dec 2024: SGD 6,800 (+SGD 500)
• From 1 Jan to 31 Dec 2025: SGD 7,400 (+SGD 600)
• From 1 Jan 2026: SGD 8,000 (+SGD 600)

The maximum CPF Cash Top-up Relief per year of assessment is SGD 16,000 (maximum SGD 8,000 for self, and an additional maximum SGD 8,000 for family members).

The CPF Board is a statutory board under the Ministry of Manpower, as specified in Part I of the Fifth Schedule to the Singapore Constitution. The CPF Board administers the CPF, Singapore’s social security savings plan that provides working Singaporeans with old-age and retirement financial security. It also administers CPF-related schemes such as MediSave, Workfare and the Skills Development Levy.

The CPF Act is periodically reviewed and amended to ensure that the CPF system remains relevant and effective in meeting the needs of Singaporeans. The CPF Board also issues regulations and guidelines to facilitate the administration of the CPF scheme.

The CPF Board proactively audits employers to check the accuracy of CPF contributions paid and wages declared.

No.

There are no specific requirements in relation to discrimination vis-à-vis pension funds. However, the Workplace Fairness Legislation, which is due to be enacted, prohibits discrimination on the grounds of a protected characteristic (such as age, sex, nationality, race and religion).

In Singapore, platform workers (including those in ride-hailing or delivery services) are afforded strengthened protection in light of the fact that they are not typically considered employees. In particular, platform workers can choose to opt in to increased CPF contributions and receive CPF contributions from platform operators to match the CPF contribution rates for employees and employers. These CPF contributions will be allocated to the platform workers’ OA, SA and MA based on the applicable allocation rates.

The Platform Workers CPF Transition Support (PCTS) scheme was announced to mitigate platform workers’ concerns about take-home pay with increases in CPF contributions. From 2025 to 2028, the PCTS provides monthly cash support to lower-income platform workers to offset part of the year-on-year increase in their share of CPF contributions.

Eligible lower-income platform workers will also receive Workfare Income Supplement payments monthly.

No. 

Yes, unions such as the National Trades Union Congress have been actively involved in advocating for better CPF contributions for platform workers, including those in gig economy roles, and have been working with the government to implement measures such as the PCTS.

No. 

No. CPF is a comprehensive social security system intended to support Singapore Citizens and Singapore Permanent Residents. CPF contributions are exempt for foreign employees as they may not retire in Singapore. Therefore, CPF contributions are payable only for Singapore Citizens and Permanent Residents.

For foreigners who wish to save voluntarily for their own retirement, they may instead consider the Supplementary Retirement Scheme.

Not applicable.