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09 Jun 2022


businessman stacking up coins, with a lightbulb at the end of the biggest stack

We all have our own dreams about retirement, but how do we make our dreams a reality? While your money has been growing steadily in your CPF accounts even in times of uncertainty, there’s more you can do.


Here are four ways to grow your retirement payouts further.

1. Make cash top-ups to your Special Account (SA) or Retirement Account (RA)

Start early by making small, regular top-ups to your CPF savings. This will allow your CPF savings to grow over time thanks to the power of compound interest. The earlier you start, the more time you give your savings to accumulate interest, thus earning more.


Small drops make a mighty ocean – small and consistent top-ups can go a long way.


Here are the interest rates your CPF savings can earn:

CPF interest rates for members below and above age 55

2. Transfer your Ordinary Account (OA) savings to your SA or RA

If you are not intending to use your OA savings for your housing needs, you can also consider transferring your OA savings to your SA (before age 55) or to your RA (after age 55).


That way your retirement income can grow further, given that your SA savings earn a higher interest rate of up to 5% per annum*, as compared to the interest earned on your OA savings of up to 3.5% per annum*.


Do note CPF transfers are also irreversible.


*Includes 1% extra interest

3. Leave your CPF savings alone to grow your retirement income

It might be tempting to make a lump sum withdrawal from your CPF savings once you reach 55. But if you have no urgent need to use that money, why not leave it in your CPF accounts so that you can continue to grow your retirement income?

Payouts would be higher if members did not make a lump sum withdrawal before age 65
  • Includes all members who are eligible to start their payouts and at age 65 in the respective years and assumes all members are on the CPF LIFE Standard Plan. Age 70 is the latest payout start age.
  • 55-withdrawals refer to retirement withdrawals made from age 55 e.g., unconditional withdrawals of up to $5,000 or withdrawals in excess of the required retirement sums.

4. Defer your retirement payouts

Did you know you don’t have to rush to start your payouts at age 65?


You have the flexibility of choosing when to start your payouts any time from age 65 to 70, especially if you don’t need the payout yet (for example if you have other sources of income).


This comes in handy as it gives your retirement savings more time to grow, which means getting larger payouts eventually. For every year that you defer, your payouts will increase by up to 7%.


In fact, more CPF members have chosen to defer their CPF savings over the past few years!

Proportion of members choosing to defer payouts has increased

Interested to find out more? Check out recent trends about CPF monthly payouts here.

Retirement may be an important milestone, but the journey we take to get there is just as important. While taking care of your current needs, you can also start saving for your future. A good start is to take small early steps, like the ones mentioned above.


Each step you take on this journey, no matter how small, can be a droplet and ripples into big waves. Take your first small step to grow your future savings today! Your future self will thank you for it.

Information presented is accurate as of the date of publication.