22 Apr 2025

SOURCE: CPF Board

If you are age 55 and older and have met your Full Retirement Sum (FRS), any additional CPF contribution from your wages would be credited to your Ordinary Account (OA).

To earn the higher interest rate in your Retirement Account (RA) of up to 6% per annum*, members can choose to transfer their OA monies to their RA. This helps to grow their retirement savings and monthly payouts in retirement! 

Since working contributions are credited monthly, a new service has been introduced for members aged 55 and above to set up standing instructions to conveniently transfer these monies monthly from their OA to RA. Members can also easily review and change the standing instructions anytime.

*Based on the current 4% interest rate floor on Special and Retirement Account monies.

What is the CPF allocation rate?

The CPF allocation rate determines how your CPF contributions are distributed into your three CPF accounts.

Before setting up automatic transfers from your OA to RA, it’s a good idea to take a look at the allocation rates applicable to you. This is because the allocation rate changes as you age and also depends on whether you have set aside the FRS in your RA.

If you don't plan to use your OA savings to meet other financial needs or commitments (e.g. for repayment of housing loan instalments), consider setting up a standing instruction that will conveniently transfer your monthly working contributions to your RA.

Factors to consider before making recurring monthly CPF transfers

1. CPF transfers are irreversible

Transferring monies from your OA to RA is an irreversible process. Take the time to review your short-term and long-term financial needs before committing to the monthly transfers.

2. Reduced liquidity

If you have met your FRS, your OA savings can be withdrawn and used for your immediate needs. Transferring to RA reduces this liquidity since RA funds cannot be withdrawn in lump sum and are reserved for your retirement.

3. Increased monthly payouts for life

Transferring monies from OA to RA helps you grow your retirement savings with the higher interest rate in your RA, in turn boosting your monthly payouts in retirement. 

To get a better understanding of your retirement payouts, use the Retirement Payout Planner. You can also simulate CPF actions (e.g. top-ups) and visualise the impact on your projected payouts and savings.

4. Lesser cash for your home financing

Transferring your OA savings will reduce available funds for property purchases or mortgage payments. This could mean more cash outlay for housing expenses. 

Before setting up recurring transfers, consider your current and future housing needs, including potential property upgrades, or outstanding loan durations.

If there are a few years left to pay for your mortgage, it’s a good idea to maintain adequate savings in your OA to have some level of financial flexibility.

How to make monthly CPF transfers from OA to RA with the new standing instruction service 

To get started on making recurring monthly transfers from your OA to RA, visit the Manage recurring cash top-ups and CPF transfers for retirement page.

Next, click on the “Add recurring CPF transfer” button. Note that this service is only applicable for CPF members age 55 and above.

If you’re looking to claim tax relief, also keep in mind that CPF transfers are not eligible for tax relief or matching grant under the Matched Retirement Savings Scheme.

On the next page, you’ll see the maximum amount of OA savings that you can transfer to your RA, subject to your top-up limit. You can then set the amount that you wish to transfer every month.

An important point to note is that CPF transfers are irreversible and you will not be able to transfer back to the originating CPF account.

Lastly, review your application to make monthly transfers of your OA savings to your RA and click on ‘Submit’.

If there are insufficient savings in your OA to transfer or you have reached your top-up limit, the recurring arrangement will be terminated after two consecutive unsuccessful transfers.

You can also return to the “Overview” page to view all recurring arrangements and edit or delete them as you wish.

What you need to know if you are part of the sandwich generation

If you are above age 55, you can now make monthly transfers from your Ordinary Account to Retirement Account conveniently with the new standing instruction service.

This helps to boost your retirement savings through the RA's higher interest rate and the power of compound interest. 

Before doing so, it's important to remember that CPF transfers are irreversible. Be sure to carefully review both your short-term and long-term financial needs such as for your home financing needs before proceeding with a transfer!

The information provided in this article is accurate as of the date of publication.