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Singapore’s Central Provident Fund (CPF) is a cornerstone of the nation’s retirement and healthcare system. As the needs of Singaporeans evolve, the government continues to adjust CPF policies to keep them relevant and sustainable. In 2025, a series of key changes have been introduced that affect how seniors can withdraw funds, claim for medical treatments, and plan their financial future. These updates aim to improve retirement adequacy, make healthcare more affordable, and give more flexibility to CPF members, especially those in their golden years.
Higher MediSave Withdrawal Limits
One of the most impactful changes coming into effect is the increase in the Flexi-MediSave withdrawal limit. From 1 October 2025, CPF members aged 60 and above will be able to use up to $400 per year from their MediSave account or their spouse’s MediSave account for outpatient treatments at public healthcare institutions or CHAS GP clinics. This is an increase from the previous limit of $300. This change is meant to help seniors better manage their recurring outpatient medical expenses without needing to dip into their cash savings. It also encourages more people to seek timely medical attention without worrying as much about affordability.
More Support for Diagnostic Scans
Another important update relates to diagnostic scans. From 1 January 2026, the annual MediSave withdrawal limit for outpatient MRI and CT scans will be doubled from $300 to $600 per year. This will be a welcome change for patients who require frequent medical imaging, especially those managing chronic illnesses or undergoing follow-up treatment. Diagnostic scans can be costly, and the increased cap is expected to benefit more than half a million Singaporeans annually.
Inclusion of Restorative Dental Procedures
In mid-2026, CPF will extend Flexi-MediSave coverage to include certain dental procedures such as root canals and permanent crowns at CHAS dental clinics and public dental institutions. This marks a significant step in recognising the importance of oral health as part of overall healthcare. Previously, many older adults avoided dental treatments due to high out-of-pocket costs. By enabling these procedures to be claimable under MediSave, seniors will be able to access essential dental care without additional financial strain.
Special Account (SA) Closure from Age 55
From early 2025, CPF members turning 55 will no longer retain their Special Account (SA). Instead, funds in the SA will be first transferred to the Retirement Account (RA) to meet the Full Retirement Sum (FRS). Any remaining SA balance after that will be moved into the Ordinary Account (OA). This change simplifies the CPF structure and makes it easier for members to track their funds. However, it also means that members will need to be more proactive in managing the use of their Ordinary Account, as OA funds are more liquid but earn lower interest than SA funds.
Enhanced Retirement Sum Raised
The Enhanced Retirement Sum (ERS) is being raised to four times the Basic Retirement Sum (BRS) from 1 January 2025. Previously, the ERS was capped at three times the BRS. With this change, members who want higher monthly payouts during retirement can choose to top up their Retirement Account with a larger amount. This benefits members who have more disposable income or wish to optimise their CPF LIFE payouts for long-term financial security.
Higher CPF Contributions for Older Workers
To help senior workers build more savings in their final working years, CPF contribution rates for employees aged above 55 to 65 will increase from 1 January 2025. The total increase will be 1.5 percentage points 1.0% from the employee’s contribution and 0.5% from the employer’s. This move continues the government’s long-term effort to narrow the contribution rate gap between younger and older workers, and it reflects the trend of longer working lives. Employers will receive a CPF Transition Offset to ease the impact of the increased costs.
Expansion of the Matched Retirement Savings Scheme (MRSS)
The Matched Retirement Savings Scheme will also be expanded from 2025. The age limit for eligibility will be removed, so even those above age 70 can qualify. In addition, the annual matching grant from the government will be raised to $2,000, with a lifetime cap of $20,000. This scheme is designed to help lower- and middle-income members build up their retirement savings with the support of their families, employers, or community groups. However, cash top-ups that qualify for the matching grant will no longer be eligible for tax relief from 2025 onward.
What Seniors Should Consider
With these changes, seniors in Singapore will need to think more strategically about how they use their CPF funds. The increased MediSave withdrawal limits provide greater flexibility, but they also require careful planning to avoid exhausting savings too early. For instance, those with chronic conditions may need to track their annual usage to ensure they stay within limits or plan around the changes in 2026. The closure of the SA and movement of funds to the OA also means that seniors who rely on high interest returns for passive income may need to reconsider how they allocate their CPF balances. Those who wish to increase their monthly payouts from CPF LIFE should also look into topping up to the higher ERS if they have the means.
Dental and Diagnostic Planning
For seniors needing major dental work or medical scans, timing becomes important. Since the expanded dental coverage only begins in mid-2026, it may be wise to postpone non-urgent treatments if possible. Similarly, patients requiring multiple scans should note the new $600 cap for outpatient scans starting in 2026, which may reduce their out-of-pocket costs compared to earlier years.
Final Thoughts
The CPF changes coming in 2025 and 2026 are significant and affect a wide range of people, particularly older Singaporeans. They represent the government’s continuing effort to refine the CPF system to be more responsive to ageing needs, rising medical costs, and the desire for higher retirement adequacy. Seniors should stay informed, consult with financial advisers if needed, and reassess their financial plans to make the most of these updates. Whether it’s optimising medical claims, increasing payouts, or understanding account changes, being proactive is key to navigating CPF’s new landscape.