List of Recommended CPF Products/Actions
To Maximise Planning, Growth & Savings
This section contains a list of all the CPF products in the recommendation list, with a more detailed description of each product, and a link to read more about the product.
Make Voluntary Contributions to Yours Ordinary Account (OA)
Boost your CPF savings by making voluntary contributions to your OA, which earns a base interest rate of 2.5% annually. This allows you to build up funds for housing, investment, education, and insurance needs while enjoying tax relief benefits. Note that there's an annual limit to voluntary contributions based on the CPF Annual Limit ($40,044 in 2024) minus any mandatory contributions made in the calendar year. These contributions are allocated according to CPF allocation rates based on your age.
Transfer from Ordinary Account (OA) to Special Account (SA) OR
Contribute to Yours/Loved Ones' CPF Accounts via Retirement Sum Topping-Up Scheme (RSTU)
Transfer funds from your OA to SA to earn up to 4% interest (compared to OA's 2.5%), potentially gaining an extra $300-400 annually per $20,000 transferred. Alternatively, use RSTU to top up your own or your loved ones' Special/Retirement Account up to the current Full Retirement Sum (FRS). RSTU offers attractive tax relief of up to $8,000 per calendar year for your own top-ups and another $8,000 for top-ups to loved ones' accounts. Important: OA to SA transfers are irreversible, and RSTU top-ups cannot be withdrawn until the recipient reaches retirement age and meets the Basic Retirement Sum requirements.
CPF Investment Scheme (CPFIS)
Take control of your CPF savings by investing them in a wide range of financial instruments including unit trusts, bonds, fixed deposits, and shares. Under CPFIS-OA, you can invest up to 35% of investible savings in stocks and 10% in gold, while CPFIS-SA allows investments in lower-risk products. To participate, you need to be at least 18 years old, have more than $20,000 in your OA or $40,000 in your SA, and complete the Self-Awareness Questionnaire. Important: Investment returns are not guaranteed, and you bear any losses incurred. Consider your risk tolerance and investment knowledge before participating, as poor investment choices could result in lower returns than the base CPF interest rates.
Make Voluntary Housing Refund
Strengthen your retirement savings by voluntarily returning CPF funds previously used for housing. This option allows you to refund the principal amount withdrawn plus the accrued interest that would have been earned if the money had remained in your CPF account. The refunded amount helps build your retirement nest egg while you maintain ownership of your property. This is particularly beneficial if you have spare cash or received an inheritance or windfall. The refund can be made in cash or CPF savings, and there's no minimum amount required. Note: Once refunded, the money can only be withdrawn again under CPF withdrawal rules, typically at retirement age.
Top up MediSave Account (MA) to Basic Healthcare Sum
Secure your healthcare needs by topping up your MediSave Account, which earns up to 4% interest annually. These funds can be used for hospitalization, approved outpatient treatments, MediShield Life premiums, and various healthcare insurance premiums. You can contribute until you reach the Basic Healthcare Sum (BHS), which is $68,500 in 2024. Enjoy tax relief of up to $8,000 per calendar year for cash top-ups to your own MA. Any excess contributions above BHS automatically flow to your Special Account (if below FRS) or Ordinary Account. Important: MediSave withdrawals are subject to withdrawal limits depending on the type of medical expense.
Nominate CPF Beneficiaries
Protect your loved ones' financial future by making a CPF nomination to specify how your CPF savings should be distributed after your passing. Without a nomination, your CPF savings will be transferred to the Public Trustee's Office and distributed according to intestacy laws, which may take longer and incur fees. You can nominate multiple beneficiaries and specify different distribution percentages. The nomination can be made at any CPF Service Centre or through online nomination if you have Singpass. Special considerations apply for Muslims under Syariah law. You can review and update your nomination anytime, and it remains private during your lifetime.
Defer CPF LIFE Payouts (if almost 65)
Maximize your retirement income by voluntarily deferring your CPF LIFE payouts beyond the payout eligibility age (currently 65). For each year of deferral, you receive up to 7% higher monthly payouts for life. This is particularly beneficial if you're still working or have other sources of income. The deferral can be done until age 70, potentially increasing your monthly payouts significantly. During the deferral period, your CPF savings continue to earn interest, and you can still make CPF top-ups to further increase your future payouts. Important: Consider your immediate financial needs and other income sources when deciding to defer, as the decision to start payouts is irreversible.
Withdraw CPF savings for immediate needs
Access your eligible CPF savings quickly through PayNow when you need funds for immediate use. This applies to various withdrawal scenarios including turning 55, reaching payout eligibility age, or other approved withdrawal conditions. The PayNow option provides almost instant transfer to your linked bank account, compared to traditional GIRO which takes several working days. To use this service, ensure your PayNow is linked to your NRIC/FIN at your bank. Note that withdrawal rules and limits still apply based on your age and CPF balances, particularly the requirement to set aside your Basic Retirement Sum before making withdrawals.
Increase Convenience with Automated Transfers
Set up GIRO for Monthly Top-ups (Part 1)
Establish a sustainable savings habit through GIRO arrangements for your CPF accounts. This automated system allows you to make regular contributions from your bank account to your CPF, ensuring consistent growth of your retirement funds. The setup process requires just one form submission, and you can specify your preferred monthly contribution amount. The automated nature helps avoid missing top-ups and provides flexibility to modify or stop the arrangement when needed. Consider setting the GIRO date close to your salary crediting date to ensure sufficient funds. There's no minimum commitment period, and you can adjust the monthly amount anytime.
Arrange for Recurring Top-Ups (Part 2)
After setting up your GIRO arrangement, manage your recurring top-ups efficiently through the CPF digital services. This feature allows you to customize your top-up schedule, specify amounts for different CPF accounts, and track your contribution history. You can set up different amounts for different months, pause top-ups during specific periods, or make one-time adjustments to your regular contributions. The system also helps ensure you don't exceed your Annual Limit by automatically stopping contributions when the limit is reached. All transactions are recorded and viewable in your CPF account statement for easy tracking.
Set up GIRO for Healthcare Premiums
Ensure continuous healthcare coverage by automating your MediShield Life and CareShield Life premium payments through GIRO. This arrangement can be set up using either your bank account or MediSave Account. Using MediSave is recommended as it's specifically meant for healthcare expenses and earns higher interest than bank accounts. The GIRO arrangement ensures you never miss a premium payment, maintaining your insurance coverage without interruption. If using a bank account, ensure sufficient funds are available on the deduction date. For MediSave deductions, the system automatically checks for adequate balance before making the deduction.