Singapore’s 2025 CPF Overhaul: Higher Retirement Age, Increased Payouts, Enhanced Platform Worker Support

The Central Provident Fund (CPF) is undergoing a significant overhaul in 2025 to address the evolving needs of Singapore’s aging population and changing workforce dynamics.

These updates aim to enhance retirement security, increase payouts, and extend support to senior workers, self-employed persons and platform workers.

Here’s a detailed breakdown of the key changes and what they mean for Singaporeans.

1. Retirement and Re-employment Ages Increased

• Statutory retirement age: Raised from 63 to 65 by year 2030
• Re-employment age: Increased from 68 to 70 by year 2030

This change reflects Singapore’s longer lifespans and healthier aging population. By supporting senior workers to work longer if they wish to do so, individuals can continue to earn an income and contribute their skills and expertise.

• Purpose: Encourages lifelong employability and enables seniors to continue earning an income if needed and stay engaged through work.
  
  

2. CPF Retirement Sums Increased

The CPF retirement sums have been adjusted to provide higher payouts during retirement.

• Basic Retirement Sum (BRS) for members who turn age 55 in 2025: SGD 106,500
• Full Retirement Sum (FRS) for members who turn age 55 in 2025: SGD 213,000 (FRS is two times of BRS)
• Enhanced Retirement Sum (ERS): from  SGD 308,700 to  SGD 426,000 (From 2025, the ERS was raised from 3 times the BRS to 4 times)

Illustrations on estimated monthly payouts for members who top up to ERS in 2025: (link)

CPF LIFE Estimated Monthly Payouts

• Members who top up on reaching age 55 in 2025 can receive CPF LIFE monthly payouts of $3,100 – $3,300 for life from age 65.
• Members turning 65 in 2025 who had previously set aside their cohort Full Retirement Sum at age 55 can receive CPF LIFE monthly payouts of $2,500 – $2,700.

These higher sums ensure retirees receive larger monthly payouts, improving their quality of life post-retirement.
Refer and use the monthly payout estimator to estimate your payouts if you top up to the raised ERS.

3. Contribution Rates and Withdrawal Rules

• Contribution rates: Increased for older employees. Overall, younger employees still contribute more than older employees
• Interest returns: Ranges between 2.5% to 4% as of Q2 2025, depending on account type and balances. Interest rates are reviewed quarterly

These rules ensure that CPF remains a stable and sustainable system for all members.

4. Support for Platform Workers 

The overhaul introduces significant measures to support platform workers, who often lack access to traditional employee benefits. 

• New measure to support retirement and housing adequacy of platform workers:
  • From 2025, platform operators are required to deduct CPF contributions from platform workers’ earnings as and when they earn and submit it to CPF Board every month. This will help platform workers make timely CPF contributions without needing to submit the CPF contributions themselves.
  • Platform workers born in 1995 or later will see their CPF contributions increased and receive CPF contributions from platform operators. The CPF contributions will gradually align to match contributions made by employees and employers. The increase in contributions will go to the platform workers’ Ordinary and Special or Retirement Accounts.
  • Platform workers born before 1995 can choose to opt in to increased CPF contributions and receive CPF contributions from platform operators.
  • From 2025 to 2028, Platform Workers CPF Transition Support (PCTS) will provide monthly cash support to lower-income platform workers to offset part of the year-on-year increase in the platform worker's share of CPF contributions to their Ordinary and Special or Retirement Accounts.

• Enhancements to retirement support:
  • Workfare Income Supplement (WIS) has been enhanced by raising the qualifying income cap and increasing WIS payments up to SGD 3,267 per year for eligible SEPs  and platform workers for work done in 2025 onwards . In addition, platform workers eligible for WIS will receive payment monthly instead of annually, as their CPF contributions will be submitted by platform operators monthly.
    
• Goal: Strengthen retirement and housing adequacy for this segment of the workforce.

System Objectives and Philosophy

The CPF system remains rooted in its core philosophy as a self-funded, mandatory savings model, distinct from state-financed pensions seen in other countries.

• Covers multiple aspects of life through different CPF accounts:
  • Ordinary Account (OA): Housing, education, and investment.
  • Special Account (SA): Retirement savings.
  • MediSave Account (MA): Healthcare expenses.
  • Retirement Account (RA): Monthly payouts during retirement.
• Ensures long-term financial self-sufficiency for individuals and reduces reliance on government welfare programs.

Guidance for Singaporeans

To make the most of these changes, citizens are encouraged to take proactive steps:

1. Reassess financial goals: Align your savings and spending with the new retirement sums and payout structures.
2. Optimise CPF contributions: Maximise contributions during peak earning years to boost retirement savings.
3. Plan withdrawals wisely: Avoid early or unnecessary lump sum withdrawals to enable higher payouts later in life.
4. Stay informed of policy changes: Regularly check for updates to CPF policies to adapt your financial planning accordingly.

What Does This Mean for Singaporeans?

The 2025 CPF overhaul brings several important implications for Singaporeans:

• Increased Financial Security: Higher retirement sums and payouts provide better financial stability for retirees.
• Longer Working Years: The raised retirement and re-employment ages encourage continued engagement in the workforce while allowing for extended CPF accumulation.
• Support for Non-Traditional Workers: New benefits for platform workers reduce disparities in retirement savings across different employment types.

The 2025 CPF Overhaul represents a significant step forward in addressing the challenges posed by an aging population and a rapidly changing economy.

By increasing retirement sums, extending working years, and supporting non-traditional workers, the CPF system ensures that Singaporeans can enjoy a secure and dignified retirement.

For citizens, staying informed and adapting to these changes will be key to maximising the benefits of this revamped system.