The Central Provident Fund (CPF) plays a crucial role in securing the financial future of Singaporeans, covering retirement, healthcare, and housing needs. With life expectancy increasing and more Singaporeans staying active in the workforce beyond their 50s, the government continues to enhance CPF policies to ensure retirement adequacy. Starting from 1 January 2025, significant changes to CPF contribution rates, primarily impacting older workers, will come into effect. Here’s a breakdown of the upcoming CPF contribution rate adjustments and how they affect employees, employers, and self-employed individuals in Singapore.

1. Increased CPF contribution rates for older workers (aged 55-70)

One of the key changes for 2025 is the increase in CPF contribution rates for older workers aged 55 to 70. This is part of a multi-year plan to gradually raise CPF rates for older workers, bringing their contribution rates closer to those of younger employees. The CPF Board has been progressively raising these rates to improve retirement savings for...