3 Jul 2026
SOURCE: CPF Board
Saving for retirement is probably the last thing on your mind when you’re juggling everyday expenses, paying off loans, and supporting your loved ones. Still, planning early can make a difference to building up your retirement savings, especially as cost of living rises.
One of the easiest ways to grow your retirement nest egg is by topping up your CPF via the Retirement Sum Topping-Up Scheme (RSTU). This helps you build up your retirement income so you can enjoy steady, lifelong monthly payouts during your golden years.
Additionally, you can receive a total of up to $16,000 in tax relief per year by topping up both your own and loved ones’ CPF accounts.
Other than tax relief, here are more benefits of topping up your CPF and why you should start early:
1. Earn risk-free interest rates on your savings
The current interest rates across your CPF accounts are 2.5% per annum for the Ordinary Account (OA) and 4% per annum for the Special Account (SA), MediSave Account (MA), and Retirement Account (RA).
What’s more, did you know you get an extra 1% interest paid on the first $60,000 of your combined CPF balances, capped at $20,000 for your OA? When you turn 55 years old, you will also receive an additional 1% interest on the first $30,000 of your combined CPF balances (capped at $20,000 of your OA), on top of extra 1% interest already earned on your first $60,000.
This translates to getting risk-free interest rates of up to 5% per annum (for those below age 55) and up to 6% per annum (for those aged 55 and above) when you contribute to your CPF with minimal effort on your part!
2. Your savings have more time to grow
Setting aside a large sum of money to last you throughout retirement might sound daunting. However, it doesn’t have to be with the power of compound interest — even small amounts can accumulate into a substantial nest egg over time.
Why not do more to capitalise on this then? The earlier you start topping up your CPF savings, the more time your money has to grow. As the chart above shows, starting earlier allows you to reach your savings goal with a lower monthly top-up amount; otherwise, you will have to contribute a higher amount later to reach the same goal. If you wait, you’re effectively missing out on the opportunity to maximise the growth potential of your retirement savings.
3. Your money may gradually lose its value
The prices of goods and services will increase over time with inflation, meaning every dollar will buy you less. An amount that feels sufficient today may fall short of covering your expenses in the future. By topping up your CPF savings early and regularly, you’re ensuring that your retirement savings keep up with the pace of inflation.
You can easily boost your retirement income with cash top-ups or CPF transfers. However, do note that these transactions are irreversible. Here’s how to get started:
Making cash top-ups
Cash top-ups can be made to yourself, your family, friends, and on behalf of your employees (if you are an employer).
One of the key benefits of top-ups is that you can claim tax relief, but did you know you can also claim tax relief when you make top-ups for your loved ones?
While there is no threshold for topping up to your parents or grandparents (or parents-in-law/grandparents-in-law), there are conditions for tax relief eligibility for cash top-ups made to your spouse or siblings. To qualify, your spouse or sibling is handicapped or must not have an annual income of more than $8,000 in the previous year before the top-up is made.
An overall personal income tax relief cap of $80,000 also applies to cash top-ups to CPF accounts.
Learn more about the terms and conditions regarding tax relief.
Making CPF transfers from your OA to SA or RA
If you do not need your OA savings for housing, you can make this CPF transfer to further grow your retirement income.
Transferring your OA savings to your SA — or RA for those aged 55 and above — maximises your interest growth. Your SA or RA savings earn a higher base interest rate of 4% per annum, compared to just 2.5% in your OA.
However, you will not enjoy tax relief on CPF transfers. If you want to enjoy tax relief, you should consider making a cash top-up instead
What is the maximum amount of cash top-ups or CPF transfers you or your loved ones can receive?
If you are below 55 years old:
You can receive cash top-ups or CPF transfers up to the Full Retirement Sum (FRS) in your SA.
If you are 55 years old and above:
You can receive cash top-ups or CPF transfers up to the Enhanced Retirement Sum (ERS) in your SA.
Here is a visual breakdown of the maximum amounts, depending on your age:
[This image is created with AI assistance]
Note that the CPF Retirement Sum is a guideline that helps you determine how much to set aside for your retirement needs — it is not a mandatory amount you need to have in your CPF! Learn more about the three different sums.
You can also check your top-up limits on your Retirement dashboard.
How can you make a cash top-up or CPF transfer?
One-time top-up or transfer
You can make a cash top-up easily on the go via the CPF Mobile app (available for iOS and Android) or via the CPF website directly.
Check out our handy guides on how to do so.
Recurring top-up or transfer
- For recurring cash top-ups: You need to first set up a GIRO arrangement. Once done, use this online form to add a recurring cash top-up. You can also submit instructions such as recipient details, top-up frequency, and the amount.
Follow this step-by-step guide to set up a recurring cash top-up via GIRO.
- For recurring CPF transfers: This is currently only available for members aged 55 and above. The funds will be transferred from your OA to RA on the 18th of each month.
You can set up a recurring CPF transfer using the same form.
By starting early and contributing regularly, you can grow your retirement nest egg and make the most of your CPF savings. Don’t wait any longer — start today!
Information in this article is accurate as at the date of publication.
