The Central Provident Fund (CPF) of Singapore is going to make some major changes by 2026 that will significantly impact the saving for retirement and healthcare of individuals. Among the most important changes are the increase in the salary ceiling, the hike in rates for senior employees, the tweaking of pensions, and new schemes for matching contributions.
These changes are very relevant at the current time since wages are increasing and the average lifespan is getting longer. They make sure that CPF savings remain equal to the demands, providing stronger security for the whole population.
Higher Monthly Salary Ceiling
The Ordinary Wage ceiling will be raised to S$8,000 from S$7,400 starting from January 2026. This means that if your salary exceeds the previous limit, a bigger amount of your salary will be subject to the CPF contributions.
Those who earn more will be able to accumulate larger balances faster.
Increased Rates for Senior Workers
The governments will increase the contribution rates for seniors in the age group of 55-65, by 1.5 percentage points. The additional amount is fully allocated to the Retirement Account until the Full Retirement Sum is reached.
This results in more savings for future monthly payouts.
Updated Retirement Sums
The Full Retirement Sum (FRS) will be about S$220,400 for people turning 55 in the year 2026. The Enhanced Retirement Sum (ERS) will be at S$440,800.
These amounts take into account the increase in living costs and the adjustment in retirement periods.
New Matched MediSave Scheme
In 2026 a matching scheme will be introduced for five years that will give dollar-for-dollar matching on top-ups for MediSave up to S$1,000 each year for the age group of 55-70 with low balances.
Healthcare funds are going to be strengthened as a result of this.
Expanded Matched Retirement Savings
The MRSS is now applicable to younger Singaporean people who have disabilities and it will be matching their contributions up to S$2000 annually ( lifetime S$20,000).
The number of people who will have a chance to create retirement savings earlier has increased.
Steady Interest Rates
The 4% minimum rate on Special, MediSave, and Retirement Accounts will stay in place for the whole of 2026. The Ordinary Account will continue to earn 2.5%.
The reliable growth guarantee is still there.
Key Changes Comparison
The major updates are summarized in the table shown below:
| Change | Before 2026 | From 2026 |
|---|---|---|
| Monthly Salary Ceiling | S$7,400 | S$8,000 |
| Contribution Rate (55-60) | ~32.5% | ~34% |
| Contribution Rate (60-65) | ~23.5% | ~25% |
| Full Retirement Sum (turning 55) | ~S$213,000 | ~S$220,400 |
| Enhanced Retirement Sum | S$426,000 | S$440,800 |
| New MediSave Matching | None | Up to S$1,000/year |
Employer Transition Support
The government will bear half of the extra employer contribution for seniors in the year 2026, thus reducing the financial burden on businesses.
The 2026 CPF reforms in Singapore will support retirement and healthcare savings through a rise in ceilings, boosts for seniors, adjusted sums, and targeted matching schemes.
Visit your CPF account today to check your balances, use the planner, or learn about top-ups. Don’t wait to secure your future!