We refer to Mr Goh Geok Huat’s letter, “Special Account lets people earn more interest with less risk” (Feb 19).

The CPF Special Account will be closed for CPF members aged 55 and above from early 2025 to ensure that CPF savings that can be withdrawn at any time will earn short-term interest rates.

As a principle, the higher long-term interest rate should only accrue to CPF savings committed for long-term retirement needs.

Members who wish to continue earning the same interest rate as that of the Special Account can choose to top up their Retirement Account.  

With the increase in Enhanced Retirement Sum from three to four times the Basic Retirement Sum from Jan 1, 2025, more than 99 per cent of the approximately 1.4 million CPF members aged 55 and above today have the option to transfer all their Special Account savings to the Retirement Account, if they do not wish to keep these savings in the Ordinary Account.

By doing so, they will continue to earn the same higher interest rate, and receive higher retirement payouts.  

Lum Pooi-Fun
Director (Retirement Systems), Income Security Policy Division
Ministry of Manpower