In 2026, significant changes are coming to Singapore’s CPF Special Account (SA) that every citizen needs to know. The SA has historically been a critical component of retirement savings, offering high interest rates to contributors. However, the SA was shut down for individuals aged 55 and older as of January 2025, leading to new guidelines on how retirement funds are managed. These changes aim to enhance the simplicity and security of retirement savings while ensuring continued growth in the Retirement Account (RA).
What was the fate of the Special Account?
As of January 2025, the SA became unavailable to members aged 55 and above. Balances remaining in the SA were transferred to the RA to fulfill the Full Retirement Sum (FRS). Any surplus funds were then allocated to the Ordinary Account (OA). Younger members, however, maintain access to their SA accounts until they reach the age threshold.
Reasons for the Closure
The closure of the SA was part of the government’s initiative to “right-size” savings. The Ordinary Account offers a lower interest rate but allows for flexible withdrawals, while committed retirement funds in the RA provide a higher return. This approach enhances user-friendliness and encourages more effective retirement planning.
Interest Rates to Remain High
The guaranteed floor interest rate of 4% for the Special, MediSave, and Retirement Accounts will remain effective until the end of 2026. Even after the SA’s closure, savings in the RA will still benefit from this guaranteed return, alleviating concerns amid volatile market conditions.
New Contribution Policy
Moving forward, contributions for individuals aged 55 and over will go directly to the RA or OA, bypassing the SA altogether. Despite this change, bonus interest rates are still applicable across these accounts, contributing to overall savings growth.
Your Savings Options
Members can transfer funds from their OA to their RA, provided it does not exceed the Enhanced Retirement Sum (ERS). This irreversible move can lead to higher monthly payouts in retirement. Alternatively, funds can be kept in the OA for various uses, such as purchasing a home.
Special Provisions for Persons with Disabilities
Starting in 2026, individuals with disabilities will have the opportunity to get matching grants for top-ups to their SA (if under 55) or RA. This initiative facilitates early savings accumulation and enhances available support.
Comparison Before and After Closure
Below is a table illustrating the main differences observed for members aged 55 and older:
- Account Availability: SA open (before 2025) vs. SA closed (from 2025 onward)
- Interest on Excess Savings: Up to 4% in SA vs. 2.5% in OA
- New Contributions: Part to SA vs. Direct to RA/OA
- Top-Up Limit (ERS): 3x Basic Retirement Sum vs. 4x BRS ($426,000 in 2025+)
- Withdrawals: Flexible from SA vs. Mainly from OA
- 4% Floor Rate: On SA/RA vs. On RA only
Planning Ahead in 2026
The increase in the salary ceiling and senior rates bodes well for overall CPF growth. It is essential to routinely check your dashboard to see how these changes impact your financial strategy. The closure of the CPF Special Account, in accordance with the new 2026 rules, streamlines savings while ensuring a 4% return on retirement funds. This system is designed for simplicity and secure future planning. Be proactive and visit your CPF account today to monitor transfers, plan for payouts, or consider top-ups to your RA to best prepare for your financial future!
Frequently Asked Questions
What is the CPF Special Account?
The CPF Special Account is a dedicated savings account within Singapore’s Central Provident Fund that primarily supports retirement savings, offering attractive interest rates to contributors.
Why was the CPF Special Account closed for those over 55?
The closure aims to streamline retirement savings options and encourage better financial planning, directing contributions to the Retirement Account instead.
How will my interest rates change in 2026?
The guaranteed interest rate of 4% for Retirement Accounts will remain in effect, ensuring continued growth even after changes occur.
What can I do with savings in my Ordinary Account?
You can use savings in your OA for various purposes, including purchasing property or contributing to your RA for enhanced retirement benefits.
Are there special provisions for disabled individuals in the CPF system?
Yes, individuals with disabilities will be able to receive matching grants for top-ups to the Special Account or Retirement Account, creating significant savings opportunities.
