Singapore Pension and Retirement Updates 2025: Full Guide for Employees

The year 2025 marks a major turning point in Singapore‘s retirement and pension system. As the cost of living rises and people are living longer, the government has implemented reforms that will strengthen financial security for working people, retired citizens, and especially those who are self-employed or have low incomes. The main objective of these changes is to provide every citizen with a stable and dignified old age.

Singapore’s pension system, called the Central Provident Fund (CPF), is at the heart of these reforms. It is a unique model that does not rely on a tax-based pension. Instead, it is a mandatory savings system to which both employees and employers contribute every month. This amount is used not only for retirement, but also for important life expenses like buying a home, healthcare and education.

Special Features of Singapore’s CPF System

Started in 1955, the CPF system was created to make citizens financially self-reliant. Every employee and employer contributes a fixed proportion of their income to the CPF, at a rate that varies according to age.

CPF accounts are divided into four main parts:

• Ordinary Account (OA): For home purchase and education expenses.
• Special Account (SA): For retirement savings.
• Medisave Account (MA): For medical and hospital expenses.
• Retirement Account (RA): Created after the age of 55 to receive a monthly pension.

In addition, the government also offers schemes such as Workfare payments and Medisave top-ups for low-income and senior citizens, making the system more inclusive.

Retirement age 65 in 2025

The retirement age was 63 in 2024, but from 2025 it has been increased to 65.

Why this change?

• People are living longer, which has increased the need for savings and pensions.
• Working for an additional two years will result in a higher contribution to the CPF balance.
• The monthly pension (CPF LIFE) amount will also be higher.

However, this can be challenging for those working in physically demanding jobs, so the government is also considering special support schemes in these areas.

New Retirement Sum (BRS, FRS, ERS)

Due to inflation, the amounts of the three tiers of CPF’s pension schemes have been increased in 2025:

• Basic Retirement Sum (BRS): 1,05,000 SGD – 900–1,000 SGD per month.
• Full Retirement Sum (FRS): 2,10,000 SGD – 1,800–2,000 SGD per month.
• Enhanced Retirement Sum (ERS): 3,15,000 SGD – 2,600–2,800 SGD per month.

Now citizens can choose from Basic, Standard or Enhanced plans depending on their lifestyle and needs.

CPF LIFE – Lifelong Pension

CPF LIFE (Lifelong Income For the Elderly) is Singapore’s lifetime pension plan, which pays a fixed amount every month after retirement.

• Under the 2025 reforms, the pension amount has been increased so that citizens can cope with the rising cost of living.
• These payments are tax-free and keep growing with an interest rate of 2.5% to 4% per annum.
• This ensures that any retired citizen can live life without the fear of running out of their savings.

CPF contribution rates (2025)

The contribution rates for employees and employers will be as follows by age:

• Under 55 years: employee 20%, employer 17% (total 37%)
• 55–60 years: employee 15%, employer 13% (total 28%)
• 60–65 years: employee 9%, employer 7.5% (total 16.5%)
• Above 65 years: employee 7.5%, employer 5% (total 12.5%)

These contributions help employees build stable savings throughout their careers.

Relief for the self-employed

For the first time from 2025, the government has introduced special pension support for freelancers, gig workers and small businesses.

• Self-employed people who contribute to the CPF will receive a monthly pension of SGD 200–400.
• This will protect those who previously had no formal pension from financial insecurity in old age.

CPF withdrawal rules

After the age of 65, citizens will receive their savings as a CPF LIFE Pension every month, rather than a lump sum withdrawal.

• This method ensures a lifetime income.
• Those who do not have a Basic Retirement Sum (BRS) can continue to work or receive government assistance.

Why are these reforms important?

Singapore’s 2025 pension reforms aim to:

• Provide citizens with a higher monthly pension in line with inflation.
• Provide more opportunities for people to save more by raising the working age.
• Provide protection for the low-income and self-employed so that no one is left behind.

These measures will create a system where every citizen can live an old age with dignity and stability.

2024 and 2025 comparison

Year	Retirement Age	BRS Payout	FRS Payout	ERS Payout
2024	63	SGD 800	SGD 1,500	SGD 2,200
2025	65	SGD 900–1,000	SGD 1,800–2,000	SGD 2,600–2,800

These figures show that not only has the retirement age increased in 2025, but the pension amount has also been raised to keep up with inflation and longevity needs.

Conclusion

While some challenges remain – such as supporting older workers in physically demanding jobs – the 2025 pension reforms move Singapore towards a more equitable and secure future. These reforms will ensure that every citizen, whether employee, retiree or self-employed, can live out their golden years with financial security and dignity.

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