The Central Provident Fund (CPF) started on 1 July 1955 as a national old-age savings plan and is administered by the CPF Board, a statutory board under the Ministry of Manpower. It has since grown into a comprehensive social-security system covering three needs — retirement, healthcare and housing. CPF contributions are compulsory for Singapore Citizens (SC) and Permanent Residents (PR) working in Singapore who earn more than S$50 a month; foreigners are exempt. For employees earning above S$750/month, total employer + employee contributions currently range from 12.5% to 37% of wages depending on age (37% for those aged 55 and below). Self-employed persons must contribute to MediSave (4%–10.5% of net trade income) if their yearly net trade income exceeds S$6,000.
Part I · Rules & Regulations·13 min read·9 sections
✓Checked against the CPF Board, Matched Retirement Savings Scheme page; Budget 2024 MRSS enhancements effective 1 Jan 2025, as at 2026-09-13; CPF Board 'Investing your CPF savings' page (updated 27 Aug 2026) for CPFIS eligibility, set-asides and the agent-bank route, as at 2026-10-22; CPF Board contribution rates for senior workers from 1 Jan 2026, retirement sums for 2026 and Basic Healthcare Sum for 2026, as at 2026-11-01. Unofficial prep, not endorsed by MAS or SCI.
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Must-know for the exam
✓CPF began 1 July 1955; administered by the CPF Board (statutory board under the Ministry of Manpower); now covers retirement, healthcare and housing. Contributions apply to SC/PR earning >S$50/month; foreigners are exempt.
✓Contribution rates (from 1 Jan 2026, wages >S$750): total 37% at age 55 and below, tapering through 34% (above 55 to 60) / 25% (above 60 to 65) / 16.5% (above 65 to 70) to 12.5% above age 70 (employer + employee combined). Self-employed contribute to MediSave (4%–10.5%) if net trade income >S$6,000.
✓Contributions go into three accounts — Ordinary (OA), Special (SA), MediSave (MA); a fourth, the Retirement Account (RA), is created at 55. SA introduced 1977, MA 1984, RA 1987. CPF savings are invested in Special Singapore Government Securities.
✓Interest floors: OA min 2.5% p.a. (3-mth average of major local banks' rates); SA/MA min 4% p.a. (12-mth avg 10-yr SGS + 1%); RA earns the weighted average of its underlying investments.
✓Extra interest: below 55 → +1% on first S$60,000 combined (OA portion capped S$20,000); 55 and above → +2% on first S$30,000 and +1% on next S$30,000 (OA capped S$20,000). Total CPF interest can reach up to ~6% p.a.
✓From early-2025 the SA is closed for members aged 55 and above — those savings move to the RA (up to FRS, long-term rate) or the OA (short-term rate).
✓CPFIS eligibility: at least 18, not an undischarged bankrupt, and >S$20,000 in OA (CPFIS-OA) and/or >S$40,000 in SA (CPFIS-SA); new investors must complete the Self-Awareness Questionnaire (SAQ) since 1 Oct 2018.
✓CPFIS instruments listed in RES5: shares, property funds, corporate/government/statutory-board bonds, unit trusts, Treasury bills, bank deposits, endowment policies, ILPs, ETFs and gold — whole-life insurance is NOT listed.
✓RES5 gives one common CPFIS instrument set and does not, in this chapter, spell out OA-vs-SA product differences or specific sub-limits (e.g. caps on shares or gold) — verify current CPFIS product rules and limits with the CPF Board.
✓Retirement sums (turning 55 in 2026): BRS S$110,200, FRS S$220,400 (= 2 × BRS), ERS S$440,800 (= 4 × BRS from 2025). For the 2024 cohort they were S$102,900 / S$205,800 / S$308,700. BRS rises 3.5% per cohort (2023–2027); from 2025 the ERS is raised from 3× to 4× BRS.
✓At 55 the RA is formed by transferring SA savings first, then OA savings, up to the cohort FRS. Members turning 65 from 2024 with RA below FRS get a further SA/OA transfer up to FRS when payouts start.
✓CPF LIFE: lifelong annuity; Payout Eligibility Age 65, payouts start anytime up to 70 (auto-start by 70). Auto-included if SC/PR born 1958+ with at least S$60,000 in RA at payout start.
✓Three CPF LIFE plans — Escalating (+2%/yr), Standard (level, the default) and Basic (legacy, payouts decline as combined balances fall below S$60,000). Deferring payouts raises them by up to 7% per year. Non-CPF-LIFE minimum payout is S$350 (drawn down for up to ~20 years).
✓Withdrawals (born 1958+): from 55, unconditional up to S$5,000 plus OA/SA above the cohort FRS; from 65, up to 20% of retirement savings (less the S$5,000).
✓Legacy: CPF nomination covers OA/SA/MA/RA, CPF LIFE premium balance and discounted Singtel shares; nominated payouts made ~17 working days. No nomination → Public Trustee's Office under intestacy laws (up to ~6 months, with a fee). CPF savings are not part of the estate and cannot be willed; nomination is revoked on marriage.
✓Top-ups & healthcare: RSTU gives up to S$8,000 tax relief (own) + S$8,000 (loved ones); MRSS matches cash top-ups (up to S$600/yr until 2024; from 1 Jan 2025 up to S$2,000/yr, S$20,000 lifetime). Healthcare stack: MediShield Life → Integrated Shield Plans; CareShield Life / ElderShield; MediFund. MediSave is capped by the Basic Healthcare Sum (BHS = S$79,000 in 2026 for members below 65; it is adjusted yearly and fixed for life in the year the member turns 65).
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Traps that cost marks
→CPF touches finance and health, but it sits under Manpower, not Finance or Health.
→PRs contribute like citizens; it is foreigners who are exempt.
→The SA is for old age; MediSave is the healthcare account.
→65 is the Payout Eligibility Age for CPF LIFE, not the age the RA is created.
→Older editions listed four plans; the current text has three.
→21 is a common distractor; the CPFIS minimum age is 18.
→It is annuity/insurance for longevity, not a deposit or a health scheme.
→OA has defined statutory uses; general lifestyle spending like holidays is not one of them.
What the CPF is
The Central Provident Fund (CPF) started on 1 July 1955 as a national old-age savings plan and is administered by the CPF Board, a statutory board under the Ministry of Manpower. It has since grown into a comprehensive social-security system covering three needs — retirement, healthcare and housing.
CPF contributions are compulsory for Singapore Citizens (SC) and Permanent Residents (PR) working in Singapore who earn more than S$50 a month; foreigners are exempt. Both employer and employee contribute a percentage of wages by law. For employees earning above S$750/month, total contributions currently range from 12.5% to 37% of wages depending on age:
•55 and below — 37% (17% employer + 20% employee)
•Above 55 to 60 — 34%; Above 60 to 65 — 25% (rates from 1 Jan 2026; they were 31% and 22% in 2024)
•Above 65 to 70 — 16.5%; Above 70 — 12.5%
Self-employed SCs/PRs must contribute to MediSave (4%–10.5% of net trade income, by age and income) if their yearly net trade income exceeds S$6,000. All members — including non-working and self-employed — may top up their own or family members' SA/RA and/or MA.
The four CPF accounts
Monthly contributions are allocated across three accounts (OA, SA, MA); a fourth (RA) is created at 55:
•Ordinary Account (OA) — receives the bulk of contributions (the share falls with age); used to buy residential property, pay certain insurance premiums, invest under CPFIS, and fund education. Earns the lower rate (legislated floor 2.5% p.a.).
•Special Account (SA) — introduced 1977, primarily reserved for old age; can be used for investments. Earns the higher rate (). From , with those savings moved to the RA (up to FRS) or OA.
early-2025 the SA is closed for members aged 55 and above
•MediSave Account (MA) — introduced 1984, for healthcare/hospitalisation and approved medical-insurance premiums; capped by the Basic Healthcare Sum (BHS).
•Retirement Account (RA) — introduced 1987 and created when the member turns 55, formed by transferring SA savings first, then OA savings, up to the cohort Full Retirement Sum; funds monthly retirement payouts (e.g. via CPF LIFE).
CPF savings are invested in Special Singapore Government Securities (non-tradeable bonds guaranteed by the Government), so returns are risk-free regardless of market conditions.
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