It can be hard to start retirement planning when you are in your 40s, 50s or 60s with just a few decades or years away from retirement. You might worry that the ship has sailed, however, the worst thing you can do to your future self is not starting late, but not starting at all.

With every day you postpone acting on your retirement, your cash silently loses its value to inflation. A dollar today simply won’t buy as much a decade from now. This is why taking action, even with smaller steps, is far better than doing nothing.

Start simple with your CPF

For Singaporeans and permanent residents, the CPF scheme is the bedrock of retirement security. It offers a straightforward, low-risk way to grow your savings through attractive, risk-free interest rates. Ultimately, these savings will fund your CPF LIFE plan, which provides a stable, guaranteed income stream for as long as you live.

Before adopting the recommendations in this article, determine your target CPF savings amount to support your retirement. Use the CPF Retirement Payout Planner to estimate the monthly income you’ll need in retirement. This will give you a clear goal to work towards.

Once that’s done, here are eight practical tips to help you accelerate your CPF savings and build a more secure retirement, no matter when you start.

1. Double your cash top-ups under the Matched Retirement Savings Scheme (MRSS)

Age eligibility: 55 years old and above

If you have not met the current Basic Retirement Sum (BRS), the government offers a helping hand through the Matched Retirement Savings Scheme (MRSS).

Under this scheme, the government will provide a dollar-for-dollar matching grant for every cash top-up you make to your Retirement Account (RA), up to an annual cap of S$2,000 and a lifetime cap of S$20,000. This is essentially a guaranteed 100% return on your contributions below the cap, which is hard to beat elsewhere.

Do note that there are eligibility criteria to meet, such as your average monthly income and the value of your property. Refer to the CPF website for the latest information.

2. Free up your cash with tax relief 

Age eligibility: All

For those who aren’t eligible for the MRSS, or have already maxed out the benefit, making cash top-ups to your CPF accounts still comes with a significant perk: tax relief.

When you top up your own Special Account (SA) or RA, you can enjoy tax relief equivalent to the top-up amount, up to the annual limit of S$8,000. You can also receive an additional S$8,000 in tax relief by topping up the SA or RA of your loved ones, including your spouse or parents.

This tax relief reduces your chargeable income, which in turn lowers your income tax payable for the year. The cash saved from paying less in taxes can then be channelled towards other savings or investment goals, giving your financial plan a welcome boost.

Read more: How to reduce your income tax with CPF and SRS

3. Transfer from OA to SA or RA for higher interests

Age eligibility: Below 55 years old for transfers from OA to SA; 55 and above for transfers from OA to RA

Your CPF accounts earn different base interest rates. Your Ordinary Account (OA) earns ~2.5% p.a., and your SA or RA and MA earn ~4.0% p.a.

An extra 1% interest is given to the first S$60,000 of their combined CPF balances (with a cap of S$20,000 on OA balances). If you are aged 55 and above, you earn an additional 1% on your first S$30,000. This means you could be earning up to 6% on parts of your retirement savings.

To maximise these interest earnings, consider transferring excess funds from your OA to your higher-earning SA or RA. The excess funds that were only earning 2.5% will then be earning at least 4.0%. This difference in compound interest can add up to a substantial sum over the years.

One important caveat: this transfer is irreversible. Once the money is in your SA or RA, you cannot move it back to your OA for other uses like housing. Ensure that you have enough OA to pay for expenses like mortgage before making a transfer.

4. Invest your OA savings for potentially higher returns

Age eligibility: 18 years old and above, and for those with a sufficient time horizon

While transferring funds to your SA is a great risk-free strategy, another option for your OA savings above the first S$20,000 is to invest them. The goal of investing is to take on more risk to generate long-term returns that can potentially outperform the CPF’s interest rates.

The CPF Investment Scheme (CPFIS) allows you to invest your OA savings in an approved list of financial products. While investing comes with market risk, a well-constructed portfolio has the potential to grow your wealth more significantly over the long run, helping you narrow the gap to your retirement goals faster.

This strategy may be suitable if you have a time horizon of at least 5 - 10 years before you need the money, among other considerations such as your risk tolerance, goals, and financial circumstances.

Learn more about investing your CPF OA with Endowus here.

5. Don’t neglect your healthcare expenses 

Age eligibility: All

Our health demands more as we age. Your MediSave Account (MA) should be part of your retirement plan as it helps pay for the premiums of your MediShield Life, CareShield Life, or Integrated Shield Plan, which increase with age.

Similar to your SA, your MA earns a base interest of 4.0% p.a. and is included in the calculation for extra interest. Some people may choose to build up their MA until it reaches the Basic Healthcare Sum (BHS), after which subsequent compulsory contributions or interest earned will overflow into your SA (or RA if you are over 55), automatically boosting your retirement payouts.

Having a robust MA balance ensures that your healthcare costs are covered without you having to dip into your cash savings or retirement income. Ideally, the interest generated by your MA can cover your annual insurance premiums, making your healthcare funding self-sustaining at retirement.

6. Consider deferring your CPF LIFE payouts

Age eligibility: 65 to 70 years old

If you can afford your current lifestyle with cash, you may wish to delay your payout start date to allow your CPF savings and interests to compound. According to CPF, for every year you defer, your monthly payout increases by up to 7%. 

Under CPF LIFE, you can start receiving your monthly payouts anytime from age 65 up to age 70, after which payouts will automatically start. You will be asked to select your CPF LIFE plan, and if you do not do so, you will be automatically enrolled on the CPF LIFE Standard Plan.

Read more: What are the different CPF LIFE plans?

7. Right-size your home with the Silver Housing Bonus (SHB)

Age eligibility: 55 years old and above

If you are a senior homeowner aged 55 or above, the Silver Housing Bonus (SHB) offers a way to right-size to unlock cash and boost your RA savings.

You can qualify for SHB when you right-size your home to a smaller three-room or smaller HDB flat, use a portion of the sales proceeds to top up your RA, and join CPF LIFE. The top-up is required to be in cash, and the amount depends on the net proceeds, capped at $60,000 per household.

In return, your household can receive up to S$30,000 cash bonus.

There will be a few changes to eligibility requirements and the bonus amount*. From 1 December 2025, you can qualify for SHB if you commit to a net increase of up to S$60,000 in your RA after right-sizing, which means that the top-up does not have to be in cash but can come from CPF housing refunds**.

Moving to a smaller home is a major lifestyle change. The SHB also has specific eligibility criteria, including an income ceiling and requirements for your next property purchase. It’s important that you weigh the financial benefits against the emotional and practical aspects of moving.

*Please refer to the HDB website for the latest information.

**CPF housing refund refers to the CPF principal amount withdrawn to purchase a property and the accrued interest that needs to be refunded after selling the property.

8. Unlock the value of your home with the Lease Buyback Scheme (LBS)

Age eligibility: 65 years old and above

Under the LBS, you can unlock the value of your home without having to move by selling the tail-end of your flat’s lease back to HDB, retaining a lease that is designed to last you (or if jointly owned, the youngest owner) for life. 

You are required to use the proceeds from the sale to top up your RA up to the specified requirements, which is dependent on your age and the number of owners. For example, under the LBS in 2025, a sole owner within the age bracket of 65 - 69 has to use the proceeds to top up their RA to the Full Retirement Sum (FRS) of S$213,000. 

Applicants who have not met the FRS prior to joining the LBS can receive a cash bonus of $30,000 per household, if the total top-up to the flat owners’ RA is S$60,000 or more. The bonus will be pro-rated if the total top-up falls below S$60,000.

The LBS is an irreversible decision. Once you join the scheme, you cannot sell your flat on the open market. This also has implications for inheritance, as the flat will be returned to HDB at the end of the lease. This option is best suited for those who do not intend to sell their flat and have other assets to leave for their beneficiaries. 

Please visit the HDB website for the latest information.

Better late than never

As Singapore's first digital advisor for CPF, SRS and cash, we have guided many clients who began their retirement planning journey in their 40s, 50s, or even 60s. The most common question we hear is, "Am I too late?"

While an earlier start is always beneficial, the most critical step you can take is to start now. The CPF scheme, which forms the foundational pillar of every Singaporean's retirement plan, is the perfect place to start your retirement plan. 

The tips above are actions you can take to make up for lost time and build momentum, but don’t jump in blind – always have the trade-offs in mind as you work towards your goals.