If you’re counting on your CPF savings for retirement, here’s some reassuring news — the Singapore government has decided to keep the 4% minimum interest rate on CPF retirement accounts until 2026.
In plain terms, that means your money in the Retirement, Special, and MediSave Accounts will continue to earn at least 4% interest, even if market rates drop lower. And yes, you don’t have to do a thing — no forms, no deadlines, no visits to the bank before 29 October 2025.
Why This Extension Matters
Think about it this way: in a world where bank interest rates can swing wildly, a guaranteed 4% return is like having a safety net that never frays.
Since 2008, this floor rate has protected millions of Singaporeans from market ups and downs. Now it will stay in place until 31 December 2026, giving retirees and future retirees the one thing money can’t always buy — peace of mind.
This decision also helps seniors handle inflation and plan predictable monthly CPF LIFE payouts. For those above 55, that’s a crucial layer of financial stability for everyday expenses and healthcare costs.
Here’s a Quick Look at the Current CPF Rates
| Account Type | Minimum Interest Rate | Who It Applies To |
|---|---|---|
| Retirement Account | 4% floor rate | CPF LIFE participants 55 and above |
| Special Account | 4% floor rate | CPF members below 55 |
| MediSave Account | 4% floor rate | All CPF members |
| Ordinary Account | Up to 3.5% (current rate) | Standard CPF contributors |
| Extension Validity | Until 31 Dec 2026 | Automatic for everyone |
What It Means for CPF LIFE Payouts
Your monthly CPF LIFE payout depends on how much you have in your Retirement Account — and the interest that money earns.
By keeping the 4% floor, the CPF Board ensures no retiree will see a dip in payouts due to lower market returns.
It’s a quiet but powerful move. While other investment returns fluctuate, your CPF LIFE payout remains steady giving you confidence that your golden years will stay financially secure.
What You Need to Do
Absolutely nothing. The extension is automatic. Just keep your CPF account active and check your statements as usual. If you’re planning your retirement, you can now make decisions knowing your savings will continue to grow safely through 2026.
Frequently Asked Questions
1. Do I need to apply for the 4% CPF interest rate?
No. The extension applies automatically to all eligible CPF members.
2. When will the new 4% floor end?
It remains in place until 31 December 2026, after which the CPF Board will review it.
3. Does the 4% apply to the Ordinary Account?
No. Ordinary Accounts earn up to 3.5%, while the 4% floor covers the Retirement, Special, and MediSave Accounts.