How does my CPF contribution allocation change as I get older?

CPF Contribution Allocation Changes with Age

The allocation of your mandatory CPF contributions across your Ordinary Account (OA), Special Account (SA), and Medisave Account (MA) changes based on your age group. This is designed to prioritize healthcare savings first, then retirement savings, and finally general savings/housing.

Allocation for Age 35 and Below (Example: S$5,000 Salary)

For individuals aged 35 and below, the allocation percentages of the gross salary are:

• Medisave Account (MA): 8% of gross salary.
• Special Account (SA): 6% of gross salary.
• Ordinary Account (OA): 23% of gross salary.

(Note: These percentages apply to the employee's share of contributions, excluding employer contributions.)

Allocation for Age 35 to 45

As you enter the 35 to 45 age bracket, the allocation shifts to prioritize retirement savings (SA) slightly more, while OA contribution decreases:

• MA: 9% of gross salary.
• SA: 7% of gross salary.
• OA: 21% of gross salary.

Overflow Mechanisms (Post-Allocation)

Once the initial allocation is made, excess contributions flow based on account limits:

• Medisave Overflow: After the Basic Healthcare Sum (BHS) is met (S$75,500 in 2025), subsequent contributions to MA overflow first to the SA until the Full Retirement Sum (FRS) is met. If the SA is also full, it overflows to the OA.
• SA Contributions: Contributions continue to flow into the SA even after the FRS is met; there is no overflow from the SA to the OA based on the provided knowledge.

Impact of SA Closure (Age 55 and Above)

For members turning 55 from January 2025 onwards, the SA closes. Contributions that would typically go to the SA are redirected: first to the RA until the FRS (S$213,000 in 2025) is met, and any remaining amount goes to the OA. Existing funds in the SA are handled separately upon age 55 (excess above FRS moves to OA).

(Source: CPF Board guidelines on contribution allocation and changes for members aged 55 and above.)