Starting in 2025, Singapore is implementing an important change to the Central Provident Fund (CPF) system. The government has announced that the default payout start age for both CPF LIFE and the Retirement Sum Scheme (RSS) will increase from 65 to 66 for members turning 65 in 2025.
This change is part of a broader long-term plan to strengthen retirement adequacy for Singaporeans, especially as life expectancy continues to rise.
This update will impact the retirement planning of many Singaporeans. Here’s everything you need to know about the change, how it affects you, and how you can prepare for it.
Current CPF Payout Age
At present, CPF members can choose to start monthly payouts between the ages of 65 and 70. If they do not actively select a payout start date, payouts automatically begin at 70. Many members, however, opt to start payouts at 65.
From 2025 onward, the government will gradually raise the default payout start age beginning with a shift from 65 to 66 for those who turn 65 in 2025. Members will still be able to start payouts anytime between 65 and 70, but unless they choose otherwise, payouts will now default to 66.
Why Is the Government Raising the Default Payout Age?
Longer Life Expectancy
Singaporeans are living longer and healthier lives. Life expectancy now exceeds 83 years, meaning that many retirees will spend 20 years or more in retirement. Raising the default payout age helps extend the longevity of retirement savings, providing stronger income support for later years.
Larger Monthly Payouts
Deferring payouts allows CPF balances to accumulate more interest, resulting in higher monthly payouts. Members who choose to defer can expect their monthly income to increase by approximately 7% for each year they delay starting payouts, up to age 70.
Encouraging Smarter Retirement Planning
By shifting the default age, the government encourages Singaporeans to actively plan their retirement and consider options that will provide better long-term security.
Key Changes at a Glance
| Feature | Before 2025 | From 2025 Onward |
|---|---|---|
| Default payout start age | 65 | 66 (for those turning 65 in 2025) |
| Payout range | 65 to 70 | 65 to 70 |
| Flexibility | Yes | Yes |
| Opt-in required for earlier start | No | No (choice remains flexible) |
Impact on CPF LIFE and Retirement Sum Scheme Members
For CPF LIFE Members
CPF LIFE is a national annuity scheme that provides lifelong monthly payouts. Raising the default payout age means members will start receiving higher monthly payouts if they do not opt to start at 65.
Members who need to access their funds earlier — due to health issues, caregiving responsibilities, or unemployment — can still start payouts at 65.
For Retirement Sum Scheme Members
RSS members withdraw their CPF savings over a fixed number of years. While they can still start payouts at 65, delaying their start date will allow them to extend their payout period, helping their savings last longer.
Flexibility and Member Choice Remain
Even with this change, CPF members retain full flexibility. You can still choose to start payouts anytime between 65 and 70, depending on your individual needs and preferences.
If you need your payouts earlier, or if your retirement planning includes other income streams, you can opt to start earlier. If you wish to maximise your monthly income later in retirement, you can choose to defer payouts up to age 70.
Preparing for the Change
1. Start Retirement Planning Early
Singaporeans approaching retirement should begin planning around age 55, when they can review their Retirement Account balance and annuity options.
2. Use CPF Tools
CPF members should make use of online tools such as Plan My Monthly Payouts to project potential payout amounts based on their desired start age.
3. Consider Voluntary Top-Ups
Consider voluntary top-ups to your CPF Retirement Account and take advantage of schemes like the Matched Retirement Savings Scheme to boost future payouts.
4. Engage with Financial Advisors
It is important to assess your full financial picture, including healthcare needs, insurance coverage, and alternative income sources, to make an informed decision about when to start CPF payouts.
Benefits of Deferring CPF Payouts
| Age Payout Starts | Estimated Monthly Payout Increase |
|---|---|
| 65 | Base payout |
| 66 | +7% |
| 67 | +14% |
| 68 | +21% |
| 69 | +28% |
| 70 | +35% |
Delaying CPF payouts allows your savings to grow longer, increasing the monthly payout you receive in retirement. This can help ensure you have adequate income for your later years.
Singapore’s move to raise the default CPF payout age to 66 starting in 2025 reflects a long-term strategy to promote retirement adequacy in a country where people are living longer.
While members maintain full flexibility, the change encourages smarter financial planning and rewards those who can afford to delay payouts with higher monthly income.
Singaporeans are encouraged to take a proactive approach — review your CPF balances, explore options to maximise payouts, and align your retirement strategy with your financial goals. With proper planning, CPF can help provide a more secure and fulfilling retirement.
FAQs
Am I required to wait until 66 to start receiving CPF payouts?
No. The flexibility to start payouts between 65 and 70 remains unchanged. The system will now default to 66 unless you choose otherwise.
Will delaying payouts really give me more money?
Yes. Deferring payouts by each year up to age 70 increases your monthly payout by approximately 7% per year.
What should I do to prepare for this change?
Begin reviewing your retirement plans early, update your payout preferences via My CPF, and consult CPF’s online tools or a financial advisor to optimise your CPF LIFE or RSS strategy.