From January 19, 2025, all CPF Special Accounts (SA) were closed for members aged 55 and above. This policy change, first announced in Budget 2024, was made to streamline CPF savings management.
Upon closure, your SA savings were automatically transferred to your Retirement Account (RA) to meet your Full Retirement Sum (FRS). If your FRS had already been met, the remaining SA savings were moved to your Ordinary Account (OA), where they continue earning 2.5% interest per year.
If you’re wondering what to do with your CPF savings after SA closure, here are five options to consider.
Should You Transfer Your OA Savings to RA for Higher CPF LIFE Payouts?
One option is to transfer your OA savings to your Retirement Account (RA). This move allows you to:
- Earn a higher interest rate (4% per year or more)
- Increase your CPF LIFE monthly payouts
- Boost your retirement security
In 2025, the CPF Enhanced Retirement Sum (ERS) increased, allowing CPF members to top up more funds into their RA. You can make voluntary top-ups to your RA at any time to maximize your CPF LIFE payouts.
However, transfers from OA to RA are irreversible. Once the funds are transferred, they cannot be withdrawn before retirement.
CPF Retirement Sums and Estimated CPF LIFE Payouts (2025)
| Retirement Sum Type | RA at Age 55 | CPF LIFE Monthly Payout (Age 65) | CPF LIFE Monthly Payout (Age 70) |
|---|---|---|---|
| Basic Retirement Sum (BRS) | S$106,500 | S$840 – S$900 | S$1,120 – S$1,210 |
| Full Retirement Sum (FRS) | S$213,000 | S$1,590 – S$1,710 | S$2,120 – S$2,290 |
| Enhanced Retirement Sum (ERS) | S$426,000 | S$3,080 – S$3,310 | S$4,080 – S$4,420 |
This option is best suited for those who prioritize long-term financial security and do not need immediate liquidity.
Should You Keep Your Money in OA for Flexibility?
If you prefer liquidity and flexibility, you can leave your savings in the OA, where they will earn 2.5% interest per year.
Advantages of keeping funds in OA:
- You can withdraw at any time (if you’ve met your FRS).
- You retain the option to invest or use the funds later.
- The OA interest rate may increase if bank interest rates rise.
This option is ideal for CPF members who may need cash for upcoming expenses or want to retain investment flexibility.
Can You Invest Your CPF OA Savings for Higher Returns?
For those willing to take investment risks, the CPF Investment Scheme (CPFIS) allows you to invest CPF OA savings (above S$20,000) in:
- Treasury bills (T-bills) and fixed deposits
- Unit trusts and ETFs
- Insurance-linked investments
If your investment performs well, it may outperform the OA’s 2.5% guaranteed return. However, investing also comes with risk, and there is no guarantee of positive returns.
Before investing, consider:
- Your risk tolerance
- Your investment timeline
- Your financial goals
If you’re unsure about investment choices, consult a financial advisor before making decisions.
Can You Withdraw CPF OA Savings for Private Investments & Insurance?
CPF members who prefer more investment options can withdraw OA savings and invest outside the CPF Investment Scheme (CPFIS).
Withdrawing CPF OA savings allows you to:
- Invest in private retirement insurance plans
- Purchase non-CPFIS approved unit trusts
- Diversify across global markets
Some CPF members may prefer liquidity over locking funds in CPF LIFE. A retirement income insurance plan could offer more flexibility compared to CPF LIFE, even if the returns are lower.
However, withdrawing CPF savings removes the 2.5% guaranteed return, and you cannot top up your CPF OA again after withdrawal.
Should You Withdraw CPF OA Savings for Immediate Needs?
If you have urgent financial needs, you can withdraw CPF OA savings once you’ve met your Full Retirement Sum (FRS).
Consider this option if you need funds for:
- Medical expenses
- Home renovations or mortgage payments
- Supporting family members
While withdrawals offer immediate liquidity, you should be mindful that keeping funds in CPF earns guaranteed interest. Only withdraw what is absolutely necessary.
FAQs
Why was my CPF Special Account (SA) closed?
From January 19, 2025, CPF SA was closed for members aged 55 and above. The savings were transferred to the Retirement Account (RA) or Ordinary Account (OA), depending on whether the Full Retirement Sum (FRS) was met.
Where did my CPF SA savings go?
Your SA savings were:
- Transferred to your RA (if your FRS was not met).
- Moved to your OA (if your FRS was already met).
Can I still top up my CPF RA after SA closure?
Yes, you can voluntarily top up your RA to increase your CPF LIFE payouts, up to the Enhanced Retirement Sum (ERS) limit.
Should I transfer my OA funds to RA?
If you prioritize higher CPF LIFE payouts, transferring your OA savings to RA is a good option. However, once transferred, these funds cannot be withdrawn before retirement.
Can I invest my CPF OA savings after SA closure?
Yes, you can invest CPF OA funds (above S$20,000) via the CPF Investment Scheme (CPFIS) in unit trusts, ETFs, fixed deposits, and more.
Is it better to keep my money in OA or transfer to RA?
- Keep in OA if you want flexibility and liquidity (earns 2.5% interest).
- Transfer to RA if you want higher retirement payouts (earns 4% or more).
Can I withdraw my CPF OA savings after SA closure?
Yes, CPF OA funds can be withdrawn anytime once you’ve met the Full Retirement Sum (FRS) in your RA.
What happens if I do nothing after SA closure?
Your CPF savings will remain in RA (earning 4%) or OA (earning 2.5%) until you decide how to use them.
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