If you have reached 55 years old you can now access the retirement savings you have built up after working hard for over twenty years. Many Singaporeans find this to be an important moment in their lives but it often comes with financial questions. The CPF rules in 2025 offer flexibility while ensuring long-term security so people can plan their savings properly for retirement as living costs & life expectancy continue to rise.
CPF Structural Changes for Members Turning 55 in 2025
When CPF members turn 55 they reach an important point because they can now make partial withdrawals from their accounts. At this age the money in your Ordinary Account and Special Account gets moved into a new Retirement Account until it reaches the Full Retirement Sum amount. Starting in 2025 there is a significant change where the Special Account closes for anyone who is 55 or older. This change makes things simpler by putting retirement savings into the Retirement Account that earns better interest or keeping the money in the Ordinary Account which offers more flexibility.
The reason for this change is to make retirement planning easier and less complicated. But there is also a downside because if people withdraw money that exceeds the Full Retirement Sum and spend it without thinking about their future needs they might end up with less money for their later years.
Understanding CPF Retirement Sums at Age 55
Members turning 55 in 2025 should understand the three CPF retirement sum benchmarks. These thresholds determine the level of CPF LIFE monthly payouts you may receive from age 65 onwards and help guide decisions on whether additional top-ups are needed.
| Retirement Sum Type | CPF Amount (2025) | Estimated CPF LIFE Monthly Payout (From Age 65) | Purpose |
|---|---|---|---|
| Basic Retirement Sum (BRS) | About $106,500 (estimated) | Lower monthly payout covering essential expenses | Meets minimum retirement needs |
| Full Retirement Sum (FRS) | Approximately $213,000 | Roughly $1,600–$1,700 per month | Provides more stable retirement income |
| Enhanced Retirement Sum (ERS) | Up to $426,000 | Can reach around $3,300 per month (illustrative) | Optional top-up for higher lifelong payouts |
CPF Withdrawal Options Available at Age 55
When CPF members turn 55 years old they can take out money under certain rules. If the savings in your Retirement Account reach the Full Retirement Sum then you can withdraw any extra amount from your Ordinary Account or Retirement Account. Even when you have not reached the Full Retirement Sum you can still take out up to $5000 without any conditions. If you own a home and the property has enough years left on its lease you can use it to satisfy part of the Full Retirement Sum requirement.
This might allow you to withdraw more cash. Most withdrawals require you to wait for 12 hours before the money is released. This cooling-off period gives members time to think about their choice again. The CPF Retirement Dashboard is useful because it shows your eligibility & account balances and tells you how much you can withdraw.
Early CPF Access and Special Circumstances
CPF savings typically remain locked until you reach 55 years old with only a few exceptions available. You may withdraw your funds early if you become permanently incapacitated or terminally ill or if you leave Singapore for good. Foreign workers who permanently depart from Singapore can usually withdraw their entire CPF balance.
Every early withdrawal request needs proper medical records or legal documents. You can still use your Ordinary Account funds for housing purposes but the government has introduced stricter limits and updated rules that took effect in 2025.
Planning Ahead for CPF LIFE Payouts From Age 65
CPF LIFE monthly payouts can start anytime from age 65 to 70 and provide income for life. Members who wait longer to receive their payouts get higher monthly amounts. Each year you delay increases your payout by roughly 7%. When the Special Account closes at age 55 members should focus on growing their Retirement Account. This account earns a steady 4% interest rate. You can also consider adding more money to your Retirement Account through programs that offer matching contributions.
This helps build stronger retirement income over time. The CPF changes that started in 2025 and continue through 2026 aim to give people more choices now while protecting their financial future. When you understand these rules & check your CPF dashboard regularly, you can make better decisions and prepare for a more stable retirement.
