If you’re curious about the Singapore Pension Scheme 2025, how much pension you can expect, and tips to increase your benefits, this guide is for you!
Read on to discover everything about Singapore’s CPF-based system and how to maximize your retirement income.
Evolution of Singapore’s Pension System
Singapore’s rapid transformation from a low-income to a high-income country has led to the development of robust retirement support mechanisms. Today, its Central Provident Fund (CPF) is recognized as one of the most effective pension systems in Asia.
The CPF Board, under the Ministry of Manpower, manages this mandatory savings scheme. It forms the core of Singapore’s pension system, with both employers and employees contributing a portion of salaries into the fund. This employment-based approach ensures that individuals accumulate sufficient savings for retirement.
Understanding the Singapore Pension Scheme
The CPF (Central Provident Fund) serves as Singapore’s national pension and savings scheme. It is designed to help Singaporeans meet essential financial needs — from retirement and healthcare to housing and education.
Contributions are made into three separate accounts:
- Ordinary Account (OA) – used for housing, insurance, investment, and education.
- Special Account (SA) – allocated for old age and investment in retirement-related financial products.
- MediSave Account (MA) – set aside for medical expenses and approved insurance premiums.
At age 55, a Retirement Account (RA) is created by transferring savings from the SA and OA to fund monthly retirement payouts.
Other pension schemes in Singapore include:
- A non-contributory pension for certain government employees.
- A provident fund for specific members of the armed forces.
Overview of Singapore Pension Scheme 2025
| Feature | Details |
|---|---|
| Pension Scheme | Central Provident Fund (CPF) |
| Payout Amount | Varies per individual |
| Retirement Age | 65 years |
| Further Information | Available below |
How Much Is the Pension in Singapore?
Upon reaching age 55, funds from your Special Account (SA) and Ordinary Account (OA) are moved into your Retirement Account (RA).
The amount transferred is capped at the Full Retirement Sum (FRS) — a benchmark that guides how much retirement savings you should aim for. Your monthly payouts in retirement depend on how much you have accumulated in the RA.
Adjustments to Retirement Sums
Each year, the Basic Retirement Sum (BRS) and Full Retirement Sum (FRS) are updated to reflect:
- Improvements in living standards
- Increases in life expectancy
- Long-term inflation
Because these sums are fixed at the age you turn 55, retirees of different ages will often have different required retirement amounts.
CPF LIFE Longevity Insurance
CPF LIFE is a national annuity scheme that ensures lifelong monthly payouts. If you were born in 1958 or later and have at least $60,000 in your Retirement Account, you will be automatically enrolled in CPF LIFE. This provides you with guaranteed income regardless of how long you live.
How to Increase Your Pension in Singapore
Want to boost your monthly retirement income? Here’s how:
Top Up Your CPF
You can make voluntary top-ups to your Enhanced Retirement Sum (ERS), which is higher than the BRS or FRS. The ERS limit increases each year, offering a chance to build a larger retirement fund for greater monthly payouts.
Voluntary Contributions
The maximum voluntary top-up allowed equals the difference between:
- Your required CPF contributions for the calendar year, and
- The CPF Annual Limit, currently set at S$37,740.
If voluntary top-ups exceed the annual cap, the excess will be refunded (without interest) in the following year.
Singapore Pension Scheme Contribution Rates
Who Contributes to CPF?
Anyone earning more than S$50/month is required to contribute to CPF. Both employees and employers participate.
Monthly Contribution Details
- CPF contributions are calculated based on your salary, up to a monthly salary cap of SGD 4,500 (~EUR 2,224).
- Employers contribute 17% of salary.
- Employees below age 55 contribute 20% of salary.
Allocation by Age
The distribution of CPF contributions across the various accounts (OA, SA, MA) varies by age group, ensuring younger workers build more savings in accounts aligned with their life stage and financial needs.
The Singapore Pension Scheme 2025 — anchored by the CPF system — offers a structured and reliable way to secure your retirement.
Understanding how contributions, retirement sums, and voluntary top-ups work can help you plan effectively and increase your future income. Make the most of your CPF to enjoy a financially stable retirement!
FAQs
What is the official retirement age under the Singapore Pension Scheme 2025?
The official retirement age in Singapore is 65 years, although you can begin receiving CPF LIFE payouts from age 65 onwards.
Can I make voluntary top-ups to my CPF after age 55?
Yes. You can continue making voluntary contributions to your Enhanced Retirement Sum (ERS) even after age 55 to increase your monthly payouts.
Is CPF LIFE mandatory for all Singaporeans?
CPF LIFE is mandatory for Singaporeans and Permanent Residents born in 1958 or later who have at least $60,000 in their Retirement Account when starting payouts.