Breaking news.
Just today Deputy Prime Minister Lawrence Wong announced a whole slew of initiatives at Budget 2024.
You can check out our
summary of Budget 2024 here:
As personal finance nerds, we can’t help but zero in on the latest seismic change to the Central Provident Fund (CPF) system.
Here’s all you need to know.
TL;DR: Latest CPF Changes Announced at Budget 2024 & How it Will Affect CPF SA Shielding
What Are the CPF Changes Announced at Budget 2024?
At Budget 2024, Minister Wong announced these significant changes to CPF:
- In 2025, individuals aged 55 to 65 will see an additional 1.5% increase in their CPF contribution rates
- From 2025, the CPF Enhanced Retirement Sum (ERS) will be raised to quadruple the Basic Retirement Sum (BRS), setting the ERS at $426,000.
- From 2025, the CPF Special Account (SA) for those aged 55 and above will be closed:
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- The CPF SA funds will then be channelled to the Retirement Account (RA) to fulfil the Full Retirement Sum (FRS).
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