What is CPF?
The complete 2026 guide to Singapore's Central Provident Fund. Understand how CPF works, the 4 accounts, contribution rates, interest rates, and how to maximize your CPF benefits.
What is CPF (Central Provident Fund)?
The Central Provident Fund (CPF) is Singapore's comprehensive social security system. Established in 1955, it is a mandatory savings scheme that helps Singapore Citizens and Permanent Residents save for retirement, healthcare, and housing needs.
Total contribution (age 55 and below)
Maximum interest rate
Types of accounts
Monthly ceiling (Jan 2026)
CPF's Three Pillars
Who Needs to Contribute to CPF?
| Category | CPF Required? | Notes |
|---|---|---|
| Singapore Citizens (Employees) | Yes (Mandatory) | Both employee and employer contribute |
| Permanent Residents (Employees) | Yes (Mandatory) | Graduated rates for first 2 years |
| Self-Employed (SC/PR) | MediSave Only | Mandatory MediSave; OA/SA voluntary |
| Foreigners (EP/S Pass/WP) | No | Not eligible for CPF contributions |
The 4 CPF Accounts
Your CPF savings are split into different accounts, each serving specific purposes. Understanding these accounts is crucial for effective CPF planning.
Ordinary Account
2.5% base interest
Most flexible account for various needs:
- • Housing purchase and mortgage
- • Education (approved institutions)
- • Investment (CPFIS)
- • Insurance premiums
Special Account
4% base interest
Dedicated retirement savings:
- • Retirement savings (primary purpose)
- • Investment (CPFIS-SA products)
- • Top-up for tax relief
- • Merges into RA at age 55
MediSave Account
4% base interest
Healthcare financing:
- • MediShield Life premiums
- • Integrated Shield Plan premiums
- • Hospitalization expenses
- • Approved outpatient treatments
Retirement Account
4% base interest
Created at age 55:
- • Formed from SA + OA savings
- • Funds CPF LIFE payouts
- • Holds retirement sum (BRS/FRS/ERS)
- • Payouts start at age 65
CPF Contribution Rates 2026
CPF contributions are shared between employee and employer. Rates vary by age, with higher contributions for younger workers to maximize compound growth.
| Age Group | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| Above 55 to 60 | 17% | 15% | 32% |
| Above 60 to 65 | 11.5% | 11.5% | 23% |
| Above 65 to 70 | 7.5% | 9% | 16.5% |
| Above 70 | 5% | 7.5% | 12.5% |
CPF Salary Ceiling Changes
The CPF monthly salary ceiling is now $8,000 (from January 2026). This means higher maximum contributions for higher earners. The CPF Annual Limit remains at $37,740.
CPF Interest Rates
CPF offers risk-free, government-guaranteed interest rates that are among the highest for savings accounts in Singapore.
Base Interest Rates
Extra Interest (Bonus)
All Members:
+1% on first $60,000 of combined balances (max $20,000 from OA)
Members 55 and above:
Additional +1% on first $30,000 of combined balances (max $20,000 from OA)
Maximum Effective Rate:
Up to 6% p.a.
(for SA/MA/RA with extra interest)
What Can CPF Be Used For?
Housing
Purchase HDB flat or private property, pay mortgage, and property stamp duties.
Uses OAHealthcare
Hospital bills, insurance premiums, approved medical treatments, vaccinations.
Uses MARetirement
CPF LIFE monthly payouts from age 65, lasting for life.
Uses RAInvestment
Invest in stocks, bonds, unit trusts, ETFs through CPFIS.
Uses OA/SAEducation
Pay for approved tertiary education at local institutions.
Uses OAInsurance
Pay for life, health, and long-term care insurance premiums.
Uses OA/MACPF Lifecycle: Key Age Milestones
Age 18: CPF Account Opens
Start receiving CPF contributions when you begin working. OA, SA, and MA accounts are active.
Age 30: CareShield Life Enrollment
Automatically enrolled in CareShield Life (long-term care insurance) if born 1980 or later.
Age 55: Retirement Account Created
RA is created from SA + OA (if needed). Can withdraw savings above retirement sum. SA closes.
Learn about CPF at 55 →Age 65: CPF LIFE Payouts Begin
Start receiving monthly CPF LIFE payouts for life. Can defer up to age 70 for higher payouts.
Learn about CPF LIFE →Frequently Asked Questions
Is CPF my money?
Yes, CPF savings belong to you. However, there are rules on when and how you can withdraw them to ensure you have adequate funds for retirement, healthcare, and housing.
Can I withdraw all my CPF at 55?
You can withdraw savings above the Full Retirement Sum (FRS) at age 55. The FRS in 2026 is $220,400. If you have less than FRS, you can still withdraw up to $5,000.
What happens to my CPF if I leave Singapore?
If you renounce citizenship or PR status and leave Singapore permanently, you can withdraw your full CPF savings (including MA). You need to apply through CPF Board.
Can foreigners contribute to CPF?
No, foreigners on work passes (EP, S Pass, Work Permit) are not eligible for CPF. Only Singapore Citizens and Permanent Residents contribute to CPF.
Is CPF interest taxable?
No, CPF interest is tax-free. Additionally, CPF contributions qualify for tax relief, and CPF withdrawals at retirement are not taxed.
Sources and further reading
Official sources and references for rules, rates, and schemes discussed on this page. Numbers on this site may be rounded or illustrative; confirm current terms with the relevant agency, CPF Board, insurer, or lender.
- What is CPF? Overview of the Central Provident Fund. CPF Board — Member homepage
- Contribution rates Employee and employer rates by age. CPF Board — Contribution rates