Singapore’s Central Provident Fund (CPF) is streamlining its structure by shutting down the Special Account (SA) for the over 55s. The transition took place gradually, beginning in January 2025 and ending in mid-January 2026.
By the time we reach 2026, the impact of the change has been very obvious and the primary concern now rests on consumers’ commitment to hard-earned retirement funds. This practice makes things very uncomplicated and helps a considerable number of people to construct larger monthly payouts without hassle.
Understanding the Special Account
The SA previously served as an account for keeping a portion of your CPF contributions for retirement and was credited with interest rates up to 4% or even more. Besides, it was a flexible option as after turning 55 one could always go for it.
Currently, the concern is channeling your savings for a longer duration to the Retirement Account (RA) for better security.
Why the Phase-Out Happened
The SA was closed by the government for savings “to be right-sided” – which means flexible funds will accrue lower interest but the ones that are locked as retirement funds will earn higher rates.
The process commenced in early 2025 with full closure by mid-January. No new contributions are allowed to SA for people aged 55 and above.
What Happens to Your SA Savings
On the last day, the remaining SA balance was first transferred to your RA up to the Full Retirement Sum (FRS, which is around S$205,800 in 2025).
Any excess amount was credited to the Ordinary Account (OA), which earns 2.5% interest instead of the previous 4%.
Impact on Interest Rates
RA deposits will continue to enjoy the same high rate of interest (up to 4%, with a floor, extended to 2026). OA will receive the rate prevailing in the short-term.
Additional interest bonuses continue to be applicable for all accounts.
Benefits of the Change
It reduces the number of lines in your CPF statement and also leads you to divert more funds to the RA for life-long CPF LIFE payouts.
It has become possible for many to top up to the highest Enhanced Retirement Sum (ERS, S$426,000 in 2025) which gives them a bigger monthly pension.
Options After Closure
You can move OA amounts to RA (non-reversible) to gain higher interest and increase future payouts.
Alternatively, you can choose to keep it in OA where it will be flexible for use in housing or investment.
Key Differences Before and After Closure
The following is a table showing the differences for members aged 55 and over:
| Aspect | Before Closure (Pre-2025) | After Closure (2025 Onward) |
|---|---|---|
| Special Account | Open, earns ~4% | Closed |
| New Contributions | Part to SA | To RA/OA directly |
| Withdrawable Savings | From SA/OA | Mainly from OA |
| Retirement Focus | Split SA/RA | All in RA up to limits |
| Enhanced Top-Up Limit | 3x BRS | 4x BRS (S$426,000 in 2025) |
| Interest on Excess | ~4% in SA | 2.5% in OA |
How It Affects 2026 and Beyond
The 4% floor rate is going to be applicable for the entire year of 2026 and beyond. And with the higher salary caps and rates the overall savings keep increasing.
Younger members will keep their SA until they are 55.
The CPF Special Account phase-out facilitates retirement planning, maintaining the growth of committed funds in a safe environment while allowing the necessary flexibility for other obligations.
Login to your CPF account today to monitor the transfers, compute the payouts, or perhaps even think about topping up your RA. Get your retirement plan secured by thinking ahead!