CPF changes from 1 Jan 2027: higher contributions for 55-65-year-olds and how it affects your pay and retirement
Heads up—if you’re a senior worker (or you manage one), there’s a small but meaningful change coming to CPF contributions from 1 January 2027. The CPF Board announced that contribution rates for older age groups will go up slightly to help boost retirement savings. Here’s a friendly, no-jargon breakdown of what’s changing, how it affects your monthly take-home and retirement pots, and what you might want to do next.
What’s changing (the short version)
From 1 January 2027, total CPF contribution rates will increase for these age bands:
- Above 55 to 60: total contribution +1.5% of wage
- Above 60 to 65: total contribution +1.0% of wage
That increase comes from both employer and employee sides: employers add 0.5% for both groups, employees contribute the rest (employee +1.0% for the 55–60 band; employee +0.5% for the 60–65 band).
Current CPF contribution rates (2026)
For reference, here are the rates that apply in 2026 for monthly wages above $750:
| Employee age | Total (% of wage) | By employer (% of wage) | By employee (% of wage) |
|---|---|---|---|
| 55 and below | 37 | 17 | 20 |
| Above 55 to 60 | 34 | 16 | 18 |
| Above 60 to 65 | 25 | 12.5 | 12.5 |
| Above 65 to 70 | 16.5 | 9 | 7.5 |
| Above 70 | 12.5 | 7.5 | 5 |
New CPF contribution rates from 1 Jan 2027
Here’s the updated table for 2027 (changes shown in parentheses):
| Employee age | 2026 Total | 2027 Total | By employer (2027) | By employee (2027) |
|---|---|---|---|---|
| 55 and below | 37 | 37 | 17 | 20 |
| Above 55 to 60 | 34 | 35.5 (+1.5) | 16.5 (+0.5) | 19 (+1) |
| Above 60 to 65 | 25 | 26 (+1) | 13 (+0.5) | 13 (+0.5) |
| Above 65 to 70 | 16.5 | 16.5 | 9 | 7.5 |
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
Where will the extra money go?
The extra contributions will be fully allocated to your Retirement Account (RA) up to the Full Retirement Sum (FRS). That’s the whole point: boost the retirement pot so you have a larger monthly payout later. If you’ve already topped up your RA to the FRS, the additional contributions will instead go into your Ordinary Account (OA).
Quick examples (so you can see the impact)
Let’s look at two simple examples using a monthly wage of $3,000:
- Age 57 (above 55 to 60):
- 2026 total CPF = 34% -> $1,020/month
- 2027 total CPF = 35.5% -> $1,065/month
- Difference = +$45/month (employer +$15, employee +$30)
- Age 62 (above 60 to 65):
- 2026 total CPF = 25% -> $750/month
- 2027 total CPF = 26% -> $780/month
- Difference = +$30/month (employer +$15, employee +$15)
Yes, the dollar amounts look small each month, but over years they add up—and remember these extra amounts go straight into your RA (until you hit FRS), so they compound for retirement.
How to check your own situation
- Log in to your CPF account or check your monthly CPF statement to see current balances in OA, SA, and RA.
- Check your Full Retirement Sum (FRS) and see if your RA is already at or above that amount.
- Use CPF calculators to estimate how changes affect your monthly contributions and the allocation across OA/SA/MA/RA.
Useful tools
The CPF Board provides calculators that let you model monthly CPF contributions, and you can use the “Plan my monthly payouts” service to estimate payout amounts when you start drawing from CPF LIFE. The Plan my monthly payouts service is available three months before you turn 65 (for members born in 1957 and after). Make sure your contact details and bank account are up to date in your account settings if you plan to use the service.
What to do next (simple checklist)
- Check your CPF balances and FRS status. If your RA is below FRS, this change will feed into RA first.
- Run the CPF calculators to see the long-term impact on your retirement pot and monthly payouts.
- If you manage payroll, update systems and staff communications so everyone knows about the new split effective 1 Jan 2027.
- If you rely on CPF payouts in retirement, plan for small increases in your future CPF LIFE payouts and consider whether voluntary top-ups still make sense for you.
Final note: this change was announced by the CPF Board on 13 Feb 2026 and is meant to strengthen retirement adequacy for senior workers. It’s not a dramatic shift, but it’s a steady nudge towards more retirement savings—worth checking out now so you’re not surprised later.
Got questions about how this affects your specific numbers? Try the CPF calculators and the Plan my monthly payouts tool, or drop a question here and I’ll walk through an example with your salary and age band.
