18 Mar 2025
SOURCE: CPF Board
Several CPF-related announcements were made during FY2025 Budget Statement and during the Committee of Supply (COS) debates by MOM, MND, and MOH in Parliament.
Here’s a summary of the key CPF changes and how you can benefit from them.
1. Increase in CPF contribution rates of senior workers aged above 55 to 65 by 1.5%-points to support retirement adequacy
In line with the recommendations of the Tripartite Workgroup on Older Workers, the CPF contribution rates for those aged above 55 to 65 will increase by 1.5 percentage points in 2026 to provide a boost in senior workers’ retirement income. This 1.5 percentage points consists of a 0.5 percentage point increase in employer contributions and 1 percentage point increase in employee contributions.
The CPF Transition Offset, equivalent to half of the 2026 increase in employer CPF contributions, will be provided to employers to cushion the impact on business cost.
2. Matched Retirement Sum Scheme (MRSS) expanded to include Singaporeans with disabilities of all ages
The Matched Retirement Savings Scheme (MRSS) helps senior Singaporeans with lower retirement savings to save more for their retirement by matching cash top-ups made to their RA.
Under the MRSS, eligible CPF members will receive dollar-to-dollar matching grant of up to $2,000 per year (with a lifetime limit of $20,000) on cash top-ups made to their RA. The cash top-ups that attract the matching grant will not qualify for tax relief.
From 1 January 2026, the MRSS will be expanded to eligible Singaporeans with disabilities of all ages to help them save up for their retirement early.
To qualify for the MRSS, Singaporeans with disabilities must be registered with the Ministry of Social and Family Development (MSF) and meet other MRSS eligibility criteria, including CPF balances, monthly income, and Annual Value of their residential property. More details on how to register with Ministry of Social and Family Development (MSF) as a person with disability will be released in the second half of 2025.
3. New Matched MediSave Scheme (MMSS) with dollar-for-dollar matching grant for cash top-ups to MediSave Account (MA) of eligible senior CPF members
A five-year Matched Medisave Scheme (MMSS) will be introduced from 2026 to 2030 to boost the MediSave adequacy for seniors with lower balances.
Under the MMSS, the Government will match every dollar in voluntary cash top-ups to the MediSave Account (MA) of eligible CPF members aged 55 to 70, up to an annual cap of $1,000.
Anyone, including eligible members themselves, their families, employers, and the community, can make the top-ups to the eligible member’s MA. Cash top-ups that attract government matching grant will not qualify for tax relief.
To be eligible for the MMSS, the CPF member whose account is being topped up must:
Be a Singapore Citizen aged 55 to 70;
Own no more than one property and have a residential Annual Value of $21,000 or below;
Have a personal monthly income not exceeding $4,000; and
Have MA balances of less than half the prevailing Basic Healthcare Sum.
MMSS eligibility is automatically assessed every year, and CPF Board will notify eligible members at the beginning of each year, from January 2026. Matching grants by the Government will be disbursed to eligible members in the following year.
4. Increase in annual MediSave withdrawal limit from $300 to $600 for outpatient scans
MediSave withdrawal limits are carefully set to ensure Singaporeans have sufficient savings to pay for healthcare expenses in their later years. This is because healthcare needs tend to grow in old age.
To better support patients with their outpatient bills, the MediSave annual withdrawal limit for outpatient scans will double from $300 to $600 from 1 January 2026.
5. $100 increase in annual Flexi-MediSave withdrawal limit, with support for restorative dental procedures
The Flexi-MediSave scheme allows CPF members aged 60 and older to use their MediSave, or their spouse’s MediSave (if they are aged 60 and older), for outpatient medical treatments at polyclinics, public hospital Specialist Outpatient Clinics, and General Practitioner (GP) clinics participating in the Community Health Assist Scheme (CHAS).
The annual withdrawal limit is currently set at $300 and will increase to $400 from 1 October 2025. On top of that, root canal treatments, and permanent crowns at CHAS dental clinics and public healthcare institutions can also be paid with Flexi-MediSave from mid-2026.
6. $5,000 MediSave Grant for mothers who deliver their third and subsequent child
A new $5,000 Large Family MediSave Grant will be disbursed into the mother’s MediSave Account for each third and subsequent child born from 18 February 2025.
This can be used to offset the mother’s pregnancy and delivery costs, or her family members’ healthcare expenses.
7. Extended use of MediShield Life and MediSave for fertility preservation
Medical treatments such as chemotherapy and radiotherapy can cause irreversible infertility. For patients undergoing such treatments, fertility preservation procedures such as embryo and egg freezing offer hope that they can have children in future. Today, not all fertility preservation procedures are eligible for financing support
From June 2026, MediShield Life coverage and the use of MediSave will be extended to cover the surgical costs of embryo freezing, egg freezing and ovarian tissue freezing. The use of MediSave will also be extended to cover the pre- and post-procedure costs of embryo freezing and ovarian tissue freezing.
8. Enhancements to Silver Housing Bonus, providing greater support for seniors who right-size to a 3-room or smaller HDB flat
The Silver Housing Bonus (SHB) provides a cash bonus of up to $30,000 if you sell your flat to buy a 3-room or smaller flat and make a cash top-up with your net sales proceeds into your Retirement Account (RA) to join CPF LIFE. Visit HDB’s Silver Housing Bonus page for the full eligibility conditions.
From 1 December 2025, the following enhancements will take effect:
The SHB eligibility criteria will be adjusted so that seniors qualify for the SHB when they commit to a net increase of up to $60,000 in their RA after right-sizing, with the sum going towards their retirement payouts.
They can do so using their CPF housing refunds* and may no longer need to make a cash top-up using their net sale proceeds^ to qualify for SHB. This means seniors can now qualify for SHB while retaining more of their net sale proceeds in cash.
Seniors who right-size to 2-room or smaller flats (including Community Care Apartments) will receive an additional $10,000 cash bonus, bringing the maximum SHB quantum to $40,000 (from $30,000);
The SHB will be extended to seniors who right-size from a private residential property with AV between $21,000 and $31,000. These seniors will receive a SHB bonus of up to $20,000 if they right-size to a 3-room or smaller flat. With this extension, SHB will now cover more than three in four residential properties.
*For seniors (i.e. aged 55 and above), CPF housing refunds will be first refunded to the RA up to members’ cohort Full Retirement Sum (FRS). Any balance housing refund will remain in the Ordinary Account (OA).
^Net sale proceeds is defined as the selling price of the current property minus the sum of any outstanding loan on the current property, purchase price of the next flat, resale levy payable, and subsidy recovery for Plus and Prime flats.
Summary of CPF-related changes announced in Budget and COS 2025
The changes announced in Budget and COS 2025 are aimed at benefitting all Singaporeans.
As summarised by Prime Minister and Minister for Finance Lawrence Wong, “This will ensure Singaporeans do not just receive help, but are able to stand on their own feet, seize better opportunities for themselves and thrive in a rapidly changing world,”
Stay tuned for updates on how these schemes will be launched and implemented in the coming months!
Information is accurate as of the date of publication.
