--- title: Guide to Managing CPF Funds after Special Account Closure description: Join The Financial Coconut for insights on personal finance, investing, and wealth-building strategies. Start your path to financial literacy today! --- # [Guide to Managing CPF Funds after Special Account Closure](https://www.thefinancialcoconut.com/blog/managing-cpf-funds-after-special-account-closure) Written by [The Financial Coconut](https://www.thefinancialcoconut.com/blog/author/the-financial-coconut) | Feb 17, 2025 2:58:29 PM   The transition of your CPF Special Account (SA) at age 55 marks a crucial milestone in your retirement planning journey. We're breaking down exactly what happens to your funds and how to optimise them for a secure future. **Closure of Special Account (SA) for Members Aged 55 and Above** As of January 19, 2025, the SA for members aged 55 and above [has been closed.](https://www.cpf.gov.sg/member/infohub/educational-resources/closure-of-special-account-for-members-aged-55-and-above-in-early-2025) Savings from the SA have been moved to the Retirement Account (RA) up to the Full Retirement Sum (FRS). Any remaining SA funds have been transferred to the Ordinary Account (OA). **Interest Rates** - **RA:** Balances earn a minimum of 4% per annum. - **OA:** Balances earn a minimum of 2.5% per annum. Members aged 55 and above receive an extra 2% interest annually on the first SGD 30,000 and an additional 1% on the next SGD 30,000 of their combined CPF balances. Note: Extra interest on OA balances is capped at SGD 20,000. These changes aim to better align CPF interest rates with the nature of savings in each account, ensuring that additional contributions continue to earn optimal interest and enhance retirement payouts. **Key Changes at 55: Where Your Money Goes** When your [Special Account closes at 55](https://www.cpf.gov.sg/member/infohub/educational-resources/closure-of-special-account-for-members-aged-55-and-above-in-early-2025), your funds don't disappear. Instead, they're strategically redistributed. The primary destination is your Retirement Account (RA), whilst any remaining balance may flow into your MediSave Account (MA). In Singapore, the Central Provident Fund (CPF) Retirement Sum is a key component of the nation's retirement planning framework. It determines the amount of savings CPF members should set aside to ensure a steady stream of income during their retirement years. To help you better plan for your future, here are the retirement sums that are applicable to members who turn 55 from 2025 to 2027: | **If you turn 55 in** | **Your BRS is** | *Your FRS is*\* | | --- | --- | --- | | 2025 | $106,500 | $213,000 | | 2026 | $110,200 | $220,400 | | 2027 | $114,100 | $228,200 | If you are 55 and above, you can choose to [**top up your Retirement Account (RA)**](https://www.cpf.gov.sg/member/growing-your-savings/saving-more-with-cpf/top-up-to-enjoy-higher-retirement-payouts) up to the [**current Enhanced Retirement Sum (ERS)**](https://www.cpf.gov.sg/service/article/what-is-the-enhanced-retirement-sum-ers) for higher monthly payouts, regardless of when you turn 55. Here are the ERS amounts for 2025 to 2027: | **Year** | **2025 (Current)** | **2026** | **2027** | | --- | --- | --- | --- | | Enhanced Retirement Sum | $426,000 | $440,800 | $456,400 | **Determination of the CPF Retirement Sum:** The CPF Retirement Sum is structured into three tiers: 1. **Basic Retirement Sum (BRS):** This is the minimum amount that provides monthly payouts to cover basic living expenses, assuming the individual owns a property. 2. **Full Retirement Sum (FRS):** Set at twice the BRS, the FRS offers higher monthly payouts for those who prefer more financial security. 3. **Enhanced Retirement Sum (ERS):** Currently set at three times the BRS, the ERS allows for even higher monthly payouts. Notably, starting from January 1, 2025, the ERS will be increased to four times the BRS to provide members with the option to top up more for greater retirement income. These sums are reviewed and adjusted annually to account for factors such as inflation, changes in the cost of living, and increased life expectancy. The adjustments ensure that the retirement payouts remain adequate over time. **Maximising Your Monthly Payouts** [CPF LIFE](https://www.cpf.gov.sg/member/retirement-income/monthly-payouts/cpf-life) becomes your reliable companion for lifetime income. You have [two main options](https://www.cpf.gov.sg/service/article/what-are-the-cpf-life-plans-available-and-which-is-the-right-plan-for-me) to consider. The [Standard Plan](https://www.cpf.gov.sg/service/article/how-does-the-cpf-life-standard-plan-work) offers stable, lifelong payouts. Meanwhile, the [Escalating Plan](https://www.cpf.gov.sg/service/article/how-does-the-cpf-life-escalating-plan-work) provides increasing payments over time, helping you combat inflation. Furthermore, timing is crucial. Starting your payouts at 65 gives you immediate access to funds. However, delaying can significantly boost your monthly income. It's worth noting that topping up your RA can enhance your payouts and offer attractive tax benefits. **Healthcare Planning: Your MediSave Account** Your [MediSave](https://www.cpf.gov.sg/member/healthcare-financing/using-your-medisave-savings) Account plays a vital role in managing healthcare costs. You can use it for: - Hospital bills - Specific outpatient treatments - Health insurance premiums Moreover, you can leverage MediSave to pay for [MediShield Life](https://www.moh.gov.sg/managing-expenses/schemes-and-subsidies/medishield-life/medishield-life) and [Integrated Shield Plan](https://www.moh.gov.sg/managing-expenses/schemes-and-subsidies/integrated-shield-plans/about-integrated-shield-plans) premiums, ensuring comprehensive health coverage during retirement. **Investment Opportunities** The [CPF Investment Scheme (CPFIS)](https://www.cpf.gov.sg/member/growing-your-savings/earning-higher-returns/investing-your-cpf-savings) offers opportunities to grow your wealth through various investment vehicles. Nevertheless, remember that RA funds cannot be invested through CPFIS, so plan accordingly. **What You Should Do Now** 1. Review your current CPF balances 2. [Calculate](https://www.cpf.gov.sg/member/tools-and-services/calculators) your desired retirement sum 3. Explore CPF LIFE payout options 4. Consider strategic RA top-ups 5. Evaluate your healthcare coverage needs Remember, early planning is key to a comfortable retirement. Stay updated to [Singapore Budget](https://www.thefinancialcoconut.com/blog/tag/singapore-budget) on changes and reliefs available for you and your finances too. Let us know what you think about this topic, and what do you want to hear next. You can now be our community contributor and make a [pitch ](https://thefinancialcoconut.com/contact/)to have your favourite personality be on our show. 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