More people topping up their CPF, beating social media cry

interest rates

More people are topping up their CPF savings and it’s not a surprise. Once you move away from the noise on social media and take time to understand the CPF Scheme, you will realise how good a scheme it is. It is not without reasons that the CPF Scheme is the top pension scheme in Asia and the 7th best in the world.

In the first three quarters of this year, there were more than 198,000 top-ups amounting to $1.81 billion to the Retirement Sum Topping-up Scheme. This is a 34% increase in the number of top-ups compared to the same period last year.

Compared to the same period last year, there is a 70% increase in the number of first-time toppers who are under 35 years old.

Young people are discovering that CPF is a great way to build up savings for retirement. The CPF interest rates are not only attractive, they are guaranteed by a triple-A credit rated Government.

CPF interest rates from 1 January 2021 to 31 March 2021

CPB Board has just announced the interest rates for the period from 1 January 2021 to 31 March 2021.

The interest rates are as follow:

interest rates

These are the floor rates. Don’t stop here. Learn about the extra interest you will also earn.

Extra Interest Rate

1. Below 55 years old

If you are below 55 years old, you will earn an extra 1% on the first $60,000 of your combined CPF balances (OA + SA + MA).

This means you will earn interest rates of:

up to 3.5% per annum on your Ordinary Account (OA) monies, and

up to 5% per annum on your Special and MediSave accounts (SMA) monies.

The extra interest earned will go into your Special Account (SA).

2. Aged 55 and older

You will earn an extra 2% interest on the first $30,000 in your Retirement Account (RA) and an extra 1% on the next $30,000 in your RA.

Retirement Account interest ratesThe extra interest paid to CPF members is part of the Government’s efforts to enhance the retirement savings for CPF members.

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The Power of Compound Interest

There was a time when people rushed to withdraw from their CPF when they reached 55. And then all that many of them did was to just deposit the money in the bank. Then they realised that was a mistake because the fixed deposit rates offered by banks could not compare with the interest rates guaranteed by CPF.

CPF interest rates are not only higher, they are compound interest.

The power of compound interest is to make your money work for you, so to speak. This is because with compound interest, your money grows exponentially.

CPF interest rates


Your $10,000 in your Special Account will earn three times more than if you put $10,000 in fixed deposit in the bank! Let this sink in!

Now that you know you can let your money do some working for you, you’d want to know that you can let your savings last you for life.

It’s something called ‘CPF LIFE’.

Retirement payouts

Your $60,000 at 55 will give you a monthly payout of more than $500 for life when you reach 65.

Just imagine the other scenario. If you have the option to withdraw all $60,000 at 55 and spend $500 every month, by the time you are 65, the money is all gone. You are left with nothing. Many people have awaken to this reality. They are not buying the ‘return my CPF at 55’ song anymore.

And finally, healthcare.

Basic Sum for 2021

The Basic Sum (BHS) is the estimated savings required for basic subsidised healthcare needs in old age. It is adjusted yearly for members below age 65. Why? To keep pace with medical inflation, the growth in MediSave withdrawals. With medical advancement, more treatment options are available and therefore, greater costs. All of us want options and better treatments.

Once members reach age 65, their BHS will be fixed for the rest of their lives.

1. For CPF members aged below 65 in 2021

The prevailing BHS is $63,000, and will be adjusted yearly.

2. For CPF members who turn 65 in 2021

The cohort BHS is $63,000 and it will remain fixed for the rest of their lives.

Here are 4 things you should know about the basic sum.



In many countries, pension is taxable income. Here in Singapore, your CPF contributions are exempted from tax. Your monthly CPF payout is also not taxable.

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