What Happens When You Turn 55?
When you reach 55, a new Retirement Account (RA) is automatically created for you by the CPF Board. Savings from your Special Account (SA), followed by your Ordinary Account (OA), are transferred to the RA to meet your applicable Retirement Sum. This move is significant, as it determines the amount of guaranteed lifelong monthly payouts you will receive from age 65 under the CPF LIFE scheme.
Starting from January 19, 2025, the SA for members aged 55 and above was closed. Any remaining SA funds were transferred to the RA, and if the FRS was met, the excess was then transferred to the OA. This change affects how you manage your savings and maximise interest, prompting many to consider voluntary top-ups to the higher-interest RA.
The Three Retirement Sum Tiers
For members turning 55 in 2025, there are three main retirement sum tiers, each offering a different level of lifelong monthly payouts:
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Basic Retirement Sum (BRS): S$106,500. This is the minimum amount required for basic living expenses. You can set aside the BRS if you own a property in Singapore and pledge it, allowing you to withdraw a larger amount of your remaining savings.
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Full Retirement Sum (FRS): S$213,000. Set at two times the BRS, the FRS provides higher monthly payouts. You must set aside the FRS if you do not own a property or do not wish to pledge it.
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Enhanced Retirement Sum (ERS): S$426,000. Raised to four times the BRS in 2025, the ERS allows you to voluntarily set aside more for significantly higher monthly payouts in retirement. This option is suitable for those who want to ensure a more comfortable retirement lifestyle.
How Your Retirement Sum Affects Your Monthly Payouts
Your chosen retirement sum directly impacts your monthly CPF LIFE payouts, which begin from age 65. The higher the sum you set aside at age 55, the higher your eventual payouts will be. It is also important to note that you can defer starting your payouts until age 70, which further increases your monthly income by up to 7% for each year deferred.
Example: Monthly Payouts based on 2025 Retirement Sums (estimated):
- BRS (S$106,500): S$840–S$900
- FRS (S$213,000): S$1,590–S$1,710
- ERS (S$426,000): S$3,080–S$3,310
These estimates are based on a member on the CPF LIFE Standard Plan, with payouts starting at age 65. It's advisable to use the official CPF LIFE Estimator to get a personalised projection.
Comparing the Different Retirement Sums
| Feature | Basic Retirement Sum (BRS) | Full Retirement Sum (FRS) | Enhanced Retirement Sum (ERS) |
|---|---|---|---|
| Amount (2025) | S$106,500 | S$213,000 | S$426,000 |
| Monthly Payouts (Est. at 65) | S$840–S$900 | S$1,590–S$1,710 | S$3,080–S$3,310 |
| Property Condition | Own property and pledge it | Do not own a property or choose not to pledge it | Does not require property pledge |
| Withdrawal Flexibility at 55 | Higher potential withdrawal if property is pledged | Up to S$5,000 plus excess above FRS | Up to S$5,000 plus excess above ERS |
| Goal | Secure basic living needs in retirement | Secure moderate retirement income | Maximise retirement income and security |
Strategies to Boost Your Retirement Savings
If your savings are currently below your desired retirement sum, there are several ways to boost your funds and secure higher payouts:
- Cash Top-Ups: Make voluntary cash top-ups to your RA to meet your target sum. This is especially useful for those aged 55 and above. You can use the Matched Retirement Savings Scheme (MRSS) for eligible seniors, which provides a dollar-for-dollar matching grant for cash top-ups, up to S$2,000 per year, from 2025.
- Voluntary Housing Refund: If you used your CPF for a property, you can voluntarily return those funds to your RA to earn higher interest and boost your retirement savings.
- Deferring Payouts: If you do not have an immediate need for the payouts at age 65, deferring them until age 70 will increase your monthly payouts.
For more detailed information and personalised planning tools, the official Central Provident Fund Board (CPFB) website is the most reliable resource. You can explore your options on their site and use their calculators for more accurate projections.
Planning for a Secure Financial Future
Knowing the required CPF retirement sum at age 55 is the first step towards securing your financial future. The right amount for you depends on your desired retirement lifestyle, as well as your property ownership status. By understanding the different tiers—BRS, FRS, and ERS—and leveraging strategies like cash top-ups and deferring payouts, you can take control of your retirement planning. The government regularly adjusts these figures to keep pace with inflation and rising living costs, making it crucial to stay informed and plan proactively for your golden years.
