Maximising your CPF money after closure of Special Account

When the CPF Special Account for those aged 55 and older closes from the later part of January, those with higher savings should consider using the extra cash to boost their CPF Life scheme.

- Tan Ooi Boon

After all, you now have the opportunity to receive higher payouts of up to $3,300 a month from age 65 if you increase your savings to the new enhanced retirement sum (ERS) of $426,000.

The new ERS is a big jump of $117,300 from the sum in 2024 ($308,700), which enabled members to receive about $2,400 a month.

As the top-up is a hefty one - more for older members who have not kept up to date with their maximum retirement sums - the extra balance from the closure of the Special Account (SA) will come in handy.

For those who have met their full retirement sums, the balance from this account will be transferred to the Ordinary Account (OA) and members can either withdraw the funds or use them to top up their Retirement Account for higher CPF Life payouts.

If you have used some of the money for external investments, you can still hold them until the products mature or are sold. When this happens, the proceeds will either go to your Retirement Account (if you have not met the full retirement sum for your cohort) or back to your OA.

WHY SOME MEMBERS HAVE HIGH SA BALANCES