Key CPF changes in 2026

By Shawn Lee

If you’ve only got a minute:

• The CPF monthly salary ceiling has been raised to S$8,000.
• The CPF Matched Retirement Savings Scheme (MRSS) has been expanded to include eligible persons with disabilities.
• Monthly payouts and premiums of CareShield Life will be increased.

The start of the year is an opportune time to review your money situation and seek opportunities to enhance your financial wellness. The Central Providend Fund (CPF) and its schemes can be seen as low hanging fruits to boost your retirement planning.

Several adjustments to the Central Provident Fund (CPF) that are designed to boost retirement savings and enhance healthcare provisions, have taken place since the start of this year. Here are 7 key CPF changes you should know.

To help middle-income Singaporeans save more for their retirement and keep pace with rising salaries, the CPF monthly salary ceiling has been raised gradually to S$8,000 from S$6,000 since 2023. The increase has taken place in 4 steps over the years.

Since 1 January 2026, the CPF monthly salary ceiling has been raised to its final level of S$8,000 from S$7,400. There is no change to the CPF annual ceiling which remains at S$102,000, and the CPF annual contribution limit also remains at S$37,740.

To recap, the CPF Retirement Sums will increase by about 3.5% annually from 2023 to 2027 to factor in inflation and a higher standard of living. In 2026, the Basic Retirement Sum (BRS) is S$110,200, the Full Retirement Sum (FRS) is S$220,400 while the Enhanced Retirement Sum (ERS) is S$440,800.

A CPF member turning 55 in 2026 can receive monthly payouts of S$3,180-S$3,410 from age 65 under the CPF LIFE Standard Plan, if he chooses to top up to the ERSthis year.

*Estimated CPF LIFE monthly payouts are calculated with the Standard Plan, using the CPF monthly payout estimator in January 2026.

The Basic Healthcare Sum (BHS) is the estimated savings you need in your CPF MediSave Account (MA) for your basic subsidised healthcare needs in old age. It is the maximum amount you can have in your MA.

For CPF members who are 65 and below in 2026, their BHS will be S$79,000. For those who are aged 65 this year, their cohort’s BHS of S$79,000 will remain fixed for the rest of their lives. For those who turned 65 in 2025, the cohort’s BHS is S$75,500. As such, members aged 66 and above in 2026 will not be affected by this change as their cohort’s BHS has already been fixed and will remain unchanged.

For CPF members below age 65, the BHS will be adjusted annually to keep pace with the expected growth in the use of MediSave savings for healthcare needs. This ensures that the BHS remains relevant for each cohort when they reach retirement age.

You can also enjoy tax relief when you top-up your CPF MA with cash. But you should do it early in the year before the MA is automatically topped up by your compulsory CPF contributions. The maximum tax relief you can receive for cash top-ups to your MediSave and Special/Retirement accounts combined is S$8,000 annually.

In addition, topping up your MA earlier in the year allows your contributions more time to earn the annual 4% interest.

In 2019, the Government announced that CPF contribution rates would be raised gradually for CPF members aged 55 to 70. This change will allow those aged between 55 and 60 to have the same contribution rates as younger workers by 2030.

Total CPF contribution rates for senior workers aged above 55 to 65 will be increased by 1.5% starting from 1 January 2026. This includes a 0.5% increase from the employer’s share and 1% from the employee’s share.

This change helps senior workers accumulate more savings in their CPF accounts and strengthens their retirement adequacy.

Designed to help senior Singapore Citizens and those with disabilities who have lower retirement savings, the Matched Retirement Savings Scheme (MRSS) provides a dollar-to-dollar matching grant.

Previously available only to those aged 55 and above, the scheme is expanded to include those below age 55 whose disability status have been verified with the Ministry of Social and Family Development (MSF).

Eligible persons with disabilities can receive a dollar-for-dollar matching grant of up to S$2,000 per year, with a lifetime limit of S$20,000 from the Government on cash top-ups received in their CPF SA or RA.

Singaporeans below age 55 will need to have their disability status verified with the MSF by 1 November of the current year to be considered for MRSS eligibility in the following year.

The Matched MediSave Scheme (MMSS) aims to help Singapore Citizens aged 55 to 70 with lower MediSave savings (less than 50% of the current Basic Healthcare Sum) and lower incomes to boost their healthcare savings by matching voluntary cash top-ups made to their MediSave Account (MA). The scheme is implemented in 2026 for a period of 5 years.

Under the MMSS, the Government will match every dollar of cash top-up to the MA of eligible members, up to S$1,000 per year. The matching grant from the Government will be disbursed in the following year.

Eligible members will be notified by CPF Board at the beginning of the year. No application is needed to participate in the scheme.

Monthly payouts for CareShield Life will grow from 2% to 4% for the next 5 years (from 2026 to 2030) to better support those with severe disabilities in managing increased healthcare expenses. The claims criteria remain unchanged.

Payouts will increase annually until you turn 67 or whenever a successful claim is made, whichever is earlier.

With this enhancement, a policyholder making a claim in 2030 will receive S$806 per month, compared to S$731 per month under the previous annual growth rate. 

Changes to the monthly CareShield Life payout^ from 2026 to 2030 

^ The monthly CareShield Life payout that individuals are eligible for increases annually until they are age 67, or when a claim is made, whichever is earlier. They will remain insured at that payout sum thereafter.

Source: MOH

To sustain the higher payouts, premiums will be increased. From 2026, there will be a one-step rise in premiums following which premiums will increase at 4% per annum.

To moderate the increase in premiums, the Government will provide an additional S$570 million transitional premium support over the next 5 years. This is in addition to the existing premium subsidies, with the average premium increase being S$38 and capped at no more than S$75.

MOH has stated that premiums will remain fully payable by MediSave and no one will lose their CareShield Life coverage due to their inability to pay premiums.

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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.