CPF Special Account will be closed next year for those aged 55 and above. What should you do?

At the same time, the maximum amount people can put into their CPF Retirement Accounts to accrue interest and receive pension payments will also be increased.

The Enhanced Pension Sum will be fixed at four times the Basic Pension Sum from 1 January 2025, up from the current three times.

These amounts are retirement targets set by the CPF Board, and each unlocks different monthly payment tiers after 10 years. They are adjusted annually to account for inflation and other factors.

The smallest is the Basic Pension Sum, followed by the Full Pension Sum and the Enhanced Pension Sum.

The Basic Pension Total for 2025 is S$106,500 (US$79,200). In comparison, the Full Pension Sum, which is twice the Basic amount, will be S$213,000, while the revised Enhanced Pension Sum will be S$426,000.

IF YOU ARE TURNING 55 SOON…

Not everyone will be affected.

Mr Loo Cheng Chuan, founder of local personal finance movement 1M65, said only those who had saved “significantly” more than their Full Retirement Total in their Private Accounts would feel the impact of the policy change.

He recalled how the movement’s Telegram chat group was flooded with questions when the announcement was made.

The 1A65 movement teaches couples how to save S$1 million in their CPF accounts by age 65. Some of its members will naturally be affected by the upcoming rule change, including Mr Loo, who turns 55 in three years.

“There were a lot of questions when it was first announced. “Even I took some time to understand the implications of this, but then I realized it wasn’t such a bad deal,” he said, referring to other existing CPF rules that would ease concerns about the loss of flexible withdrawals.

These include provisions allowing members born in 1958 and later to withdraw up to 20 per cent of their Retirement Account savings after turning 65, excluding cash top-ups, CPF transfers and government grants.

“These will still allow you to withdraw some money – not the full amount, but still a significant amount that will be enough for most people,” Mr Loo said.