I recently attended the Retirement Workshop with CPF as the Foundation conducted by Advent Connect on 29 and 30 July 2025. Over two days, I walked away with a sharper understanding of how CPF supports retirement, and just as importantly, how much more we need to do to secure our financial independence. The workshop reminded me that CPF is a strong foundation, but not the whole house.

CPF: A Solid Start, But Only the Base

CPF is designed to meet our basic retirement needs. Through mandatory contributions and attractive interest rates, we accumulate funds in our Ordinary, Special, and MediSave Accounts. At 55, these are consolidated into the Retirement Account (RA), from which CPF LIFE pays us a lifelong monthly income from age 65.

But here’s the reality: CPF LIFE payouts, typically between $1,700 and $2,300 a month (depending on the Retirement Sum and plan), may only cover essentials. For many households, lifestyle expenses, healthcare, travel, and family commitments go well beyond this. CPF provides security, but not sufficiency for those who desire a richer retirement experience.

CPF Changes in 2025 – What You Must Know

This year has brought several important CPF updates:

• Closure of Special Account (SA) at 55: From early 2025, members above 55 will no longer have an SA. Balances will flow into the RA for higher CPF LIFE payouts. This change strengthens retirement adequacy but reduces liquidity, making cash flow planning more important.
  
  

• Higher Contribution Rates for Senior Workers: From January 2025, CPF contribution rates for workers aged 55 to 65 increased. This means more savings are channeled into retirement accounts, helping older workers build stronger CPF balances.
  
  

• Enhanced Retirement Sum (ERS) Raised: The ERS cap has been raised, allowing members who wish to top up beyond the Full Retirement Sum (FRS) to secure even higher monthly CPF LIFE payouts. This is especially relevant for those with surplus funds who want to lock in guaranteed lifelong income.
  
  

These changes reinforce CPF’s role as the foundation of retirement, but also highlight the need for additional planning outside CPF.

A Useful Tool for Clarity

One of the highlights of the workshop was an Excel projection tool. It allows you to input your CPF balances and desired retirement income, then generates a report showing:

• Your projected lump-sum withdrawals at 55.

• Your estimated monthly CPF LIFE payouts from 65.

• How long CPF Lump Sum and CPF LIFE payouts can sustain your desired retirement income.

This last outcome is especially powerful. For many, the report reveals a funding gap—an uncomfortable but necessary reality check. It raises awareness that additional retirement funds are not optional, but essential.