6 CPF changes in 2026. How will they affect you?

What happened?

As we enter 2026, there are some changes to Central Provident Fund (CPF) that may affect you.

Earlier, we shared that from 1 January 2026, the CPF monthly salary ceiling will be raised further.

This may lead to some reduction in your take-home pay. However, it will also help to build up your retirement savings as the higher CPF contributions are accumulated over time. 

Apart from changes to the CPF monthly salary ceiling, there will also be higher contribution rates for senior workers and an increase in the Basic Retirement Sum (BRS).

In this article, we will break down what these may mean for our wallets and retirement planning.

#1 - CPF monthly salary ceiling rises to S$8,000

From 1 January 2026, the CPF Ordinary Wage monthly salary ceiling will increase from S$7,400 to S$8,000. 

If you earn more than S$7,400 a month, your monthly take-home pay will be reduced due to the higher CPF monthly salary ceiling. 

This is due to the increased CPF contributions you must make on a monthly basis.

If you earn a monthly wage of S$8,000, your 20% employee contribution will currently be S$1,480 as it is capped by the S$7,400 ceiling.

When the CPF monthly salary ceiling is raised to S$8,000 on 1 January 2026, your 20% employee contribution will increase to S$1,600.

This would mean that your CPF contribution as an employee will increase by S$120 per month compared to 2025. Your take-home pay would also fall by S$120 per month as a result.

Here is a quick look at the impact if you earn S$8,000 or more:

As the CPF contributions increase, your retirement savings will grow at a faster pace in the long-term.

If you earn S$8,000 a month, you will receive an additional S$120 in employee CPF contributions and S$102 in employer CPF contributions per month when the changes take effect in 2026, compared to the contributions in 2025.  

This means that there will now be an additional S$222 going into your CPF accounts every month, or S$2,664 every year.

#2 - Higher CPF contribution rates for seniors (aged 55–65)

To boost retirement adequacy for senior workers, contribution rates for employees aged above 55 to 65 will increase starting 1 January 2026. 

The total contribution rate will rise by 1.5%, which comprises a 0.5% increase from the employer and a 1% increase from the employee.

This change applies to senior workers earning more than S$750 per month.

While this results in a slight reduction in take-home pay for senior workers, all additional contributions are directed to the Retirement Account (RA) up to the Full Retirement Sum (FRS).

If the FRS has already been met, any surplus will go to the Ordinary Account. 

The change is intended to help senior workers strengthen retirement savings before CPF payouts begin.

#3 - Higher retirement and re-employment ages

From 1 July 2026, Singapore’s statutory retirement age will rise to 64, while the re-employment age will increase to 69. 

These changes will align with the long-term goal of moving the retirement age to 65, and the re-employment age to 70 by 2030.

This is intended to provide a boost to the retirement savings of older employees who are still working, providing them with additional financial support for their later years.

The CPF payout eligibility age remains unchanged at 65.

#4 - Higher BRS, FRS, ERS 

The Full Retirement Sum (FRS) for those turning 55 in 2026 will increase to S$220,400 in 2026, up from S$213,000 in 2025. 

This figure represents the amount you need to set aside in your Retirement Account at age 55 to receive standard monthly payouts for life.

The ERS cap is now four times the Basic Retirement Sum (BRS), allowing members who can afford it to commit more to CPF LIFE and receive higher lifelong monthly payouts.

As a result, the Enhanced Retirement Sum (ERS) will increase to S$440,800 in 2026, up from S$426,000 in 2025. 

Learn more about CPF Retirement Sum: Guide to FRS, ERS and BRS here. 

#5 - Expansion of Matched Retirement Savings Scheme (MRSS) and start of New Matched MediSave Scheme (MMSS)

The government is also enhancing schemes that help top up the accounts of those with lower balances. 

The eligibility for the Matched Retirement Savings Scheme (MRSS) is expanding to cover eligible persons with disabilities of all ages, removing the previous age floor of 55. 

Under this scheme, the government will match cash top-ups made to their Retirement Account (RA) or Special Account (SA) dollar-for-dollar, up to the annual cap.

The annual matching cap remains at S$2,000 a year with a lifetime cap S$20,000 in voluntary CPF top-ups.

Additionally, a new pilot scheme called the Matched MediSave Scheme (MMSS) will launch from 2026 to 2030, matching dollar-for-dollar voluntary cash top-ups to MediSave for eligible Singaporeans aged 55 to 70.

The government will match voluntary cash top-ups to their MediSave Account dollar-for-dollar, up to S$1,000 per year. 

To qualify, individuals must have an average monthly income of S$4,000 or less, own no more than one property with annual value of residence being not more than S$21,000, and have a MediSave balance below half the Basic Healthcare Sum (BHS).

#6 - MediSave and healthcare enhancements

Several healthcare-related enhancements begin in 2026.

The annual MediSave withdrawal limit for outpatient scans will double from S$300 to S$600 from 1 January 2026.

From mid 2026, Flexi-MediSave will be expanded to cover selected restorative dental procedures for seniors aged 60 and above at CHAS-accredited clinics, and fertility treatment coverage will be broadened.

Home healthcare support will also be strengthened from April 2026, with expanded subsidies for consumables under the Seniors’ Mobility and Enabling Fund (SMF) and higher payouts under the Home Caregiving Grant (HCG), which can reach up to S$600 per month.

What Would Beansprout Do?

With the upcoming changes to CPF, taking a structured approach can help us with our retirement planning. 

For many of us, the key figure that we should aim to achieve by the time we reach retirement age is the Full Retirement Sum (FRS). 

The Full Retirement Sum (FRS) for those turning 55 in 2026 will be increased to $220,400, equivalent to two times the Basic Retirement Sum (BRS).

As we approach 2026, you may also want to consider different ways to grow our CPF retirement savings.

One of the options is to transfer funds from your CPF Ordinary Account (OA) to your CPF Special Account (SA) to earn a higher interest rate. We discuss the pros and cons of transferring to your SA here.  

Alternative, you can consider a Retirement Sum Top-Up (RSTU), which will also allow you to enjoy tax relief. 

Lastly, you may also choose to invest your CPF funds. We look at the different investment options eligible for the CPF Investment Scheme here.

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