Singapore Extends 4% CPF Interest Floor to 2026: What It Means for Your Retirement, Healthcare and Housing Plans

The Government has extended the 4% interest rate floor on SMRA savings to 31 December 2026, giving members two more years of certainty over the minimum return on their retirement and healthcare balances. This is significant because SMRA interest is pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) + 1%. When market yields are subdued and the peg would otherwise fall below 4%, the floor guarantees 4% instead. This is designed to keep long-term retirement and medical savings compounding steadily despite rate cycles.

Singapore Extends 4% CPF Interest Floor to 2026 Quick summary

What you will earn from October to December 2025

• SMRA (Special, MediSave, Retirement Accounts): 4% p.a.
• OA (Ordinary Account): 2.5% p.a.
• HDB concessionary loan rate: 2.6% p.a. (pegged at OA + 0.1%)
  These quarterly rates were confirmed for 1 October to 31 December 2025, offering stable benchmarks for both savers and borrowers.

How the CPF interest structure works

SMRA returns and safety

SMRA balances are invested in Special Singapore Government Securities (SSGS), which are guaranteed by the Government. This framework ensures that your credited CPF interest is paid regardless of market conditions, and it underpins the application of the 4% floor when the peg is lower.

OA and housing planning

The OA rate remains at 2.5% p.a. (the legislated minimum). Because HDB concessionary loans are set at OA + 0.1%, the HDB rate is 2.6% p.a. for the same quarter. This linkage helps households plan mortgage payments with a high degree of predictability.

Extra interest that boosts older members balances

Beyond the base rates, the Government pays extra interest to strengthen retirement adequacy:

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• Below age 55: +1% on the first $60,000 of combined CPF balances (capped at $20,000 from OA).
• Age 55 and above: +2% on the first $30,000, and +1% on the next $30,000 (both with a $20,000 from OA cap).
  Extra interest is credited to the Special Account (SA) or Retirement Account (RA) where possible, accelerating growth of retirement funds.

If you are on CPF LIFE

Members on CPF LIFE, Singapore’s lifelong annuity scheme, continue to earn the extra interest on their combined balances, including savings that have been committed to CPF LIFE. CPF LIFE savings are guaranteed by the Government and target risk-free interest rates of up to 6% p.a., anchored by the SMRA 4% floor and the extra interest applicable to the first tranches of savings. This design supports sustainable payouts throughout retirement.

Practical implications for your planning

1. Lock in a real baseline on retirement and healthcare savings
   With the 4% floor extended to end-2026, you have confidence that SMRA balances will earn at least 4% p.a. even if the 10YSGS-based peg is lower. This is particularly valuable for members consolidating savings in SA/RA or approaching the payout eligibility age.
2. Mortgage budgeting stays predictable
   The OA 2.5% and HDB 2.6% rates for Oct–Dec 2025 give a stable reference for cash-flow planning. Members contemplating partial OA transfers to SA for higher long-term returns should weigh this against the opportunity cost of a lower OA balance for housing needs.
3. Use extra interest strategically
   Check whether your balances are positioned to maximise the extra 1%/2% tranches, especially after age 55 when extra interest is richer on the first $30,000. This can meaningfully lift RA growth before CPF LIFE payouts begin.
4. Review your retirement income mix
   If you are choosing a CPF LIFE plan, remember that payouts reflect credited interest and extra interest over time. The underlying guarantee and risk-free accrual support a baseline of income that is less sensitive to market swings.

Frequently asked questions

1) What exactly is the “interest rate floor”?

It is a minimum rate the Government guarantees on SMRA. Although SMRA is pegged to 10YSGS 12-month average + 1%, members receive no less than 4% p.a. when the peg is below 4%. This floor is now in place until 31 December 2026.

2) What are the CPF interest rates from October to December 2025?

SMRA: 4%, OA: 2.5%, and HDB loan: 2.6%. These will be reviewed again for the next quarter.

3) How does the extra interest work?

Below age 55, you get +1% on the first $60,000 combined CPF (cap $20,000 from OA). From age 55, you get +2% on the first $30,000 and +1% on the next $30,000 (same OA cap). Extra interest is credited to SA or RA to grow retirement savings.

4) I am on CPF LIFE. Do I still earn extra interest?

Yes. Extra interest continues to accrue even when savings are used for CPF LIFE. CPF LIFE savings are guaranteed by the Government and target up to 6% p.a., anchored by the 4% floor.

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5) Where can I see current official rates?

See the CPF Board news release and interest-rate pages, and the HDB loan rate page for housing loans.

Conclusion

Extending the 4% SMRA interest floor to end-2026 preserves the core promise of CPF: steady, risk-free growth for retirement and healthcare savings even when market benchmarks are soft. Coupled with the OA 2.5% and HDB 2.6% rates for October–December 2025, and with extra interest that favours seniors, the framework gives members a predictable foundation to plan mortgages, grow retirement balances, and select CPF LIFE options confidently. Review your balances against the extra-interest tiers, confirm your housing cash-flow under the current OA/HDB rates, and use the official CPF pages to keep track of quarterly updates.

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