CPF Special Account closure: What happens at 55 and what to do next

The CPF Special Account closure is a significant change to Singapore's retirement system. It ended a strategy that some members with large CPF balances used, and it affects how members of all ages may plan for retirement.

What is the CPF Special Account closure?

The CPF Special Account closure is a policy, announced in Budget 2024, that closes the SA of every CPF member aged 55 and above.

It took effect on 19 January 2025. CPF Board's aim is to align interest rates with how accessible savings are. Savings that cannot be withdrawn on demand, such as those in the RA, earn a higher interest rate. Savings that can be withdrawn on demand, such as those in the OA, earn a lower rate. Members below 55 keep their SA, which continues to earn at least 4.0% p.a. until it closes on their 55th birthday.

What happens to your CPF SA when you turn 55?

When you turn 55, your SA closes. Your SA savings, followed by your OA savings, move to your newly created RA, up to your cohort's FRS. If you have already reached the FRS, any remaining SA savings move to your OA, which can be withdrawn.

Here's where your savings go after the SA closure:

If you want to keep earning the RA interest rate on the savings that moved to your OA, you can transfer them to your RA, up to the current year's ERS. This also raises your CPF LIFE monthly payouts, which start between ages 65 to 70. You can find this year's FRS and ERS amounts in our CPF retirement sums guide.

What was CPF shielding, and why did it end?

CPF shielding was a strategy that let members keep their SA savings out of their RA at 55. This preserved both the higher SA interest rate and full liquidity. The CPF Special Account closure ended it, because SA savings above the FRS now move to the OA instead of staying in the SA.

How CPF shielding worked:

1. At 55, CPF transfers SA savings to the RA first, then OA savings. Members who had invested their SA savings before turning 55 kept those savings from being transferred.
2. OA savings, which earn a lower 2.5% p.a., were used to fund the RA up to the FRS instead.
3. After the transfer, members liquidated their SA investments. The proceeds returned to the SA, kept earning roughly 4.0% p.a., and could be withdrawn at any time.

The strategy only benefited members with CPF savings above the FRS. The SA was designed to hold retirement savings, which is why it earns a higher interest rate. Shielding lets members earn that rate on money they could withdraw on demand. The SA closure aligns interest rates with how accessible savings are: savings that can be withdrawn on demand now earn the OA rate.

How does the SA closure affect members aged 55 and above?

The CPF Special Account closure has the greatest impact on members who have reached or exceeded the FRS. Their savings above the FRS now earn the OA rate of 2.5% p.a. instead of 4.0% p.a. This also applies to compulsory contributions from members who work past 55, once their FRS is met. Members can still choose to transfer these OA savings to their RA, up to the current year's ERS, to earn 4.0% p.a. However, savings moved to the RA cannot be withdrawn on demand, and the transfer cannot be reversed.

These savings earn risk-free interests, but a look at inflation would tell us that "risk-free" could be a risk in itself. Singapore's average annual headline inflation (CPI-All Items) from 2011 to 2025 was about 2.0% (source: SingStat). At 2.5% p.a., the OA rate leaves only a thin margin above inflation, so OA savings grow little in real terms and may not be fully spared from inflation in higher-inflation years.

Ensuring Singaporeans are prepared for retirement is a national priority. Since September 2026, Singapore has officially become a super-aged society, with more than 21% of the citizen population aged 65 and older.

Why should younger CPF members care about the SA closure?

Even if you are not turning 55 anytime soon, or your CPF is nowhere near the FRS, the SA closure is a nudge for all Singaporeans to consider their retirement adequacy. Here are some thought starters for you:

• Have you estimated your liquidity needs at retirement?
• Do you know how to preserve liquidity at retirement, while ensuring that your savings will not be eroded by inflation?
• How much of your retirement needs can be met by your CPF?
• Do you need to build other wealth sources for your retirement?

How can you plan around the CPF Special Account closure?

There is no telling how long we can live, and therefore it's important to ensure that you have adequate savings to last throughout retirement.

That means taking an appropriate amount of risk to keep your savings growing, and to mitigate the effect of inflation. Starting your planning early will give you a longer runway to take more risks now, rather than to feel compelled to do so in your later years.

Consider investing your CPF

For those who have a couple of decades before retirement, you may wish to take more risk by investing your OA (after setting aside $20,000). Before doing so, you should assess your liquidity, risk tolerance, short to long-term goals, and other financial needs, which will be important to decide what the best options are.

Explore SRS

Cash top-ups to your CPF grant you tax reliefs, and so do contributions to the SRS, a voluntary scheme that complements CPF. The key difference is flexibility. CPF top-ups are irreversible and locked in for retirement, while you can withdraw your SRS savings at any time. Withdrawals before the statutory retirement age simply attract a 5% penalty and are fully taxable, so SRS suits retirement savings you may want to keep within reach.

SRS offers a dual benefit of tax reduction and saving for your retirement, mainly:

1. Postpone your tax bill now: SRS contributions receive dollar-for-dollar tax relief on your chargeable income, up to $15,300 a year for Singaporeans and PRs and $35,700 a year for foreigners, within the overall $80,000 personal income tax relief cap.
2. Pay less tax later in your retirement years: You can withdraw your SRS savings penalty-free from the statutory retirement age that applied when you made your first contribution. Only 50% of withdrawals will be subject to tax.

As SRS funds earn only 0.05% interest per annum, it may make sense to consider investing them. There are a few investment options to explore, such as T-bills, shares, ETFs, or unit trusts. You can find out more about SRS investing here.

At retirement age, you have the option to withdraw your SRS at a tax-preferential rate in cash and top up your RA, be it to meet the FRS or the ERS, or anything in between. This allows you to enjoy the higher investment flexibility of SRS right now, and more retirement income stability through CPF LIFE later.

Should you still top up your SA?

It depends on your age, your liquidity needs, and how much certainty you want in retirement. Top-ups remain risk-free and raise your future CPF LIFE payouts, though they are highly illiquid.

• Below 55: You can top up your SA up to the current FRS. These savings earn at least 4.0% p.a. and move to your RA at 55. See our guide to the Retirement Sum Topping-Up Scheme (RSTU) for limits and tax relief.
• 55 and above: You can top up your RA up to the current year's ERS. The ERS was raised in 2025 to four times the Basic Retirement Sum (BRS), so the maximum you can hold in your RA is now higher. If you're deciding whether to top up to the ERS, you can read our guide here.

Before topping up, set aside money for emergencies, insurance, your mortgage, and any large lump-sum expenses. CPF's risk-free interests suit members who prefer a conservative approach, especially near or during retirement.

Strategise, not just save for retirement

CPF has long been a cornerstone of retirement planning in Singapore, providing a structured and reliable means for Singaporeans to save for their golden years. The discussion of the SA closure highlights the importance of a proactive approach towards retirement planning.

One can think of the CPF as a system that lays the foundation to protect your basic needs, and also offers plenty more room to meet your retirement aspirations, if you know how to plan it right.

Many of us know it is difficult to reach our financial goals just by saving alone, whether it is to retire early, plan for the next generation, or simply to have a dignified retirement.

On top of your monthly CPF contributions, taking on a more proactive approach and maximising the potential of your CPF savings will reward you later in life.

How can you invest your CPF savings with Endowus?

You may invest your CPF savings with our Flagship Portfolios, which are broadly diversified to capture opportunities and spread risks across geographies and sectors. They are constructed with funds offered by global fund managers and curated by our Investment Office, which continue to undergo regular monitoring.

You can choose from six portfolios with varying allocations to equities and fixed income to suit your goals, risk tolerance, and time horizon—explore them here.

Endowus is the first digital advisor included by the CPF Board for CPF investing. For CPF OA and SA investments, the Endowus Fee is a flat 0.40% p.a. for advised portfolios (Flagship, Income, ESG, or Fund Smart with two or more funds), or 0.30% p.a. for a single-fund Fund Smart portfolio. There are no sales charges, and Endowus rebates 100% of any trailer fees to you as cashback. See our pricing page for full details.

Read more:

• CPF vs SRS: Which should you top up for tax reliefs?
• How to build a holistic retirement plan with cash, CPF, and SRS

FAQs on the CPF Special Account closure

Can I withdraw from my CPF Special Account?

Generally, no. SA savings are meant for retirement and cannot be withdrawn on demand before 55, except in limited cases set by CPF Board. When your SA closes at 55, savings above your FRS move to your OA, and you can withdraw those savings when needed.

Can I transfer money from my SA to my OA?

No. CPF allows transfers from the OA to the SA, but not the reverse, and these transfers are irreversible. At 55, SA savings above your FRS move to your OA automatically when your SA closes.

Does the SA closure affect members below 55?

Not directly. Members below 55 keep their SA, which earns at least 4.0% p.a. (the floor rate, extended through 31 December 2027) until their 55th birthday. Still, the closure is a reason to plan early: a longer runway gives you more time to grow your retirement savings beyond CPF.

Can I still earn 4.0% on my CPF savings after 55?

Yes. You can transfer OA savings to your RA, up to the current year's ERS. RA savings earn at least 4.0% p.a., as the government has extended the 4.0% floor rate through 31 December 2027. Topping up your RA also boosts your CPF LIFE payouts. However, top-ups or transfers are irreversible.