CPF explained: OA, SA, MA, and RA
How Singapore's mandatory savings scheme actually works — accounts, interest rates, and retirement sums.
Every payslip, a chunk of your salary disappears into CPF before you see it — and your employer adds more on top. Here is what is actually happening to that money.
1. The four accounts
CPF splits your contributions across up to four accounts, each with a different purpose and interest rate. The interest rates are guaranteed by the government and compound annually.
| Account | Purpose | Base Interest Rate (2026) |
|---|---|---|
| Ordinary Account (OA) | Housing, CPF investment scheme (CPFIS), education, insurance | 2.5% p.a. |
| Special Account (SA) | Retirement savings — higher, locked-in growth | 4.0% p.a. |
| MediSave Account (MA) | Hospitalisation, MediShield Life, approved medical/outpatient care | 4.0% p.a. (capped at BHS: $79,000 for 2026) |
| Retirement Account (RA) | Formed at age 55 from OA + SA; funds your CPF Life payouts | 4.0% p.a. |
To boost retirement savings, the first $60,000 of your combined OA, SA, and MA balances (capped at $20,000 from OA) earns an extra 1% interest per year.
2. How much goes in, and where
Your total CPF contribution rate depends on your age and citizenship status. For SCs and PRs (3rd year+) under 55, the combined rate is 37% of wages (20% from you, 17% from your employer) up to the Ordinary Wage ceiling of $8,000/month.
| Age band | Total Contribution | → OA | → SA | → MA |
|---|---|---|---|---|
| 35 & below | 37.0% | 23.0% | 6.0% | 8.0% |
| Above 35 to 45 | 37.0% | 21.0% | 7.0% | 9.0% |
| Above 45 to 50 | 37.0% | 19.0% | 8.0% | 10.0% |
| Above 50 to 55 | 37.0% | 15.0% | 11.5% | 10.5% |
| Above 55 to 60 | 33.5% (2026) | 12.0% | 11.0% (RA) | 10.5% |
3. What happens at 55
At 55, CPF Board creates your Retirement Account (RA) by transferring your SA balance, then drawing from your OA if needed, up to your chosen retirement sum tier — Basic (BRS), Full (FRS), or Enhanced (ERS). Your RA balance is what determines your CPF Life monthly payout starting from age 65.
4. Voluntary top-ups worth knowing
Beyond mandatory contributions, you can boost your CPF voluntarily to earn guaranteed interest and save on income tax:
- Voluntary Contribution (VC-OA) — Top up your OA directly if you have a housing purchase or investment plan in mind.
- Retirement Sum Topping-Up (RSTU) — Top up your SA (or RA if 55+) for yourself or a loved one. Earns 4%+ and gives tax relief up to $8,000/year.
- Voluntary MediSave Top-up — Useful for self-employed individuals to meet their healthcare caps and save on tax.
Frequently Asked Questions
Simulate these concepts under your personal income and age profile.
All guide contents are sourced from official publications by the Central Provident Fund (CPF) Board, the Inland Revenue Authority of Singapore (IRAS), and the Housing & Development Board (HDB).
We regularly audit calculations for compliance with current 2026/YA 2025 schedules.