Several CPF scheme changes were approved in 2015 and just came into effect in 2016. Here are the most significant changes that you must be aware of.
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1. Increased salary ceiling from $5,000 to $6,000.
2. Increased CPF contribution rates:
| Age | Change in employer contribution rate | Change in employee contribution rate |
| 50-55 | From 15% to 16% | From 18% to 19% | 55-60 | From 12% to 13% | No change at 13% |
| 60-65 | From 8.5% to 9% | No change at 7.5% |
3. Increase of 1% interest rate to 6% on first $30,000 of CPF savings for members over 55 years.
4. Change in retirement sums required to $80,500 for property owners and $161,000 up to a maximum of $241,500 for non-property owners.
5. Additional withdrawal allowance of retirement savings account at 65 up to 20% of retirement account (includes existing $5,000 withdrawal allowance at age 55).
6. Option to defer CPF Life payouts up to age 70. For each year deferred, members will have an increase of 6-7% increase in monthly payouts.
7. Option to transfer CPF savings above the Basic Retirement Sum ($80,500) to spouse’s CPF account. This is to allow your spouse to enjoy the additional interest paid on the first $60,000 of combined CPF savings.
8. There is no longer a need to top-up the Medisave Basic Healthcare Sum (previously known as the Medisave Minimum Sum)
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