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10 Feb 2022


To help you better prepare for retirement, six changes will be made to the CPF system in 2022:

#1:  CPF contribution rates to increase by up to 2% for those between 55 and 70

For wages earned from 1 January 2022, the CPF contribution rates for employees aged above 55 to 70 have been increased to help strengthen retirement adequacy.


For employees aged above 55 to 60 and above 60 to 65, their contribution rates have increased by 2% of their wage—comprising a 1% increase on both the employer’s and employee’s side.


For employees aged above 65 to 70, the contribution rate was raised by 1.5% of their wage, comprising a 0.5% increase on the employer’s side and a 1% increase on the employee’s side.


For a more comprehensive breakdown of the CPF contribution rates, visit this page.

#2: Higher tax relief of up to $8,000 per year for cash top-ups

Enjoy higher annual tax relief of up to $8,000 from the previous cap of $7,000 from 1 January 2022, when you top up your own Special/Retirement Account and/or MediSave Account.


You will also receive additional tax relief of up to $8,000 from the previous cap of $7,000 when you  top up your loved ones’ Special/Retirement Account and/or MediSave Account.

#3: For top-ups to MediSave, all tax relief will go to the giver, and there is now only one top-up limit—the Basic Healthcare Sum

Starting from 1 January 2022, tax relief for MediSave top-ups will go to the giver. This is aligned with the Retirement Sum Topping-Up Scheme, where the tax relief is provided to the giver as well.  


The amount you can top up to your MediSave is the difference between the Basic Healthcare Sum (BHS) and your current MediSave balances. Once the BHS has been reached, no further top-ups can be made to the MediSave Account. If the top-up causes the BHS to be exceeded, the full amount of the top-up will be refunded.


Previously, members had to consider both the CPF Annual Limit and the BHS for MediSave top-ups, but now there is only one limit – the BHS. 


You can learn more about topping up your MediSave by visiting this page.

#4: Save more for retirement and healthcare needs with the Basic Retirement Sum (BRS) and Basic Healthcare Sum (BHS)

For members who turn 55 in 2022, their Basic Retirement Sum (BRS) is $96,000, their Full Retirement Sum (FRS) is $192,000 and their Enhanced Retirement Sum (ERS) is $288,000. To help you better plan for retirement, your BRS will be made known to you ahead of time.


Also, the Basic Healthcare Sum (BHS) for members who turn 65 in 2022 is set at $66,000 and will remain fixed for the rest of their lives.

#5: All inflows into the Retirement Account (RA) will automatically increase CPF LIFE monthly payouts


CPF Lifelong Income For the Elderly (CPF LIFE) is a national longevity insurance annuity scheme that provides you with monthly payouts no matter how long you live. From November 2021, CPF LIFE members who receive inflows into RA, such as via top-ups or housing refunds, will see an automatic increase in their CPF LIFE payouts.


Members will start receiving these higher payouts from July 2022. Previously, members had to apply to increase their CPF LIFE premiums with these inflows. With this change, the increase in monthly payouts happens automatically, giving members more convenience when managing their retirement savings.


You can learn more about CPF LIFE via this page.

#6: Members not on CPF LIFE will continue to receive monthly payouts from Ordinary and Special Account when their Retirement Account is exhausted


Currently, the monthly payouts for members who are not on CPF LIFE will stop when their retirement savings run out, even when they still have savings in their Ordinary Account (OA) and Special Account (SA).


This change ensures that they can continue to receive monthly payouts from their OA and SA automatically to supplement their retirement expenses without having to apply to withdraw or transfer their OA and SA savings to their Retirement Account.  This brings greater convenience to members and minimises disruption to their lifestyle.

The information provided in this article is accurate as of 4 February 2022.