Budget 2024: CPF changes for senior workers include Special Account closure, higher Enhanced Retirement Sum

• Closure of Special Account for those aged 55 and above
• Higher Enhanced Retirement Sum to four times Basic Retirement Sum
• Rise in contribution rates of workers aged above 55 to 65

FROM 2025, the Central Provident Fund (CPF) Special Accounts (SAs) of those aged 55 and above will be closed, with the savings transferred to their Retirement Accounts (RAs), up to the Full Retirement Sum (FRS).

Any SA savings that remain will go to the Ordinary Account (OA). OA savings can be withdrawn, but interest is accrued at the lower, short-term interest rate.

CPF members can, at any time, transfer their OA savings to the RA – where savings can only be disbursed to members in retirement payouts – up to the Enhanced Retirement Sum (ERS).