The CPF Retirement Sum Topping-Up Scheme (RSTU) is one of the most powerful and tax-efficient ways to grow your retirement nest egg in a safe and predictable manner. By voluntarily topping up your Special Account (SA) or Retirement Account (RA), your savings earn a risk-free interest rate of least 4% per annum. In time to come, you will receive higher lifelong monthly payouts under CPF LIFE. In this article, let’s explore the Retirement Sum Topping-Up Scheme, its benefits and limitations, and practical strategies to optimise your retirement savings.

Table of Contents:

1. What is the Retirement Sum Topping-Up Scheme (RSTU)
2. Understanding the Retirement Sums
3. Benefits of the RSTU
4. Limitations of the RSTU
5. Maximising Your CPF Top-Ups
6. RSTU vs MediSave Top-Ups
7. Final Thoughts
8. Step-By-Step Guide

One Minute Summary:

• RSTU allows you to top up your Special Account (if you are below 55) or Retirement Account (if you are 55 and above).
• Your top-ups earn a risk-free interest of at least 4% per annum, and up to 6% per annum.
• You can enjoy up to $16,000 in tax relief each calendar year for eligible cash top-ups to your own and loved ones’ Special or Retirement Account.
• More savings in your Special or Retirement Account means higher lifelong monthly payout under CPF LIFE.
• Top-up monies are locked in for retirement and cannot be withdrawn early.
• RSTU may be suitable if you expect to live long and want a predictable and stable retirement income.

Part 1: What is the Retirement Sum Topping-Up Scheme (RSTU)

The CPF Retirement Sum Topping-Up Scheme (RSTU) is a voluntary scheme that allows you to add extra savings into your own or your loved ones’ Special or Retirement Account. You can top up these accounts through:

1. Cash top-ups using your own cash savings
2. CPF transfers from your Ordinary Account (OA).

Your age determines how much you can top up and which account receives your top-up.

You can check your personal top-up limit in the “Top-ups” section of the CPF Retirement Dashboard.

Part 2: Understanding the Retirement Sums

CPF Board (CPFB) adjusts the retirement sums every year to keep pace with long-term inflation and living costs.

To illustrate, by setting aside the Full Retirement Sum at age 55, you will receive a lifelong monthly retirement income of between $1,610 to $1,730.

Part 3: Benefits of the RSTU

The Retirement Sum Topping-Up Scheme offers several compelling advantages:

Part 3.1: High Risk-Free Interest Rate

Savings in the Special or Retirement Account earn a base risk-free interest rate of 4% per annum. Additionally, CPF provides extra interest on the first $60,000 of your combined balances.

This is one of the highest risk-free returns available in Singapore.

Let’s consider the following two examples to illustrate the power of compound interest:

As can be seen, savings in the Special or Retirement Account enjoy more returns from compounding. In fact, if you continue to save for another 10 years, the amount grows to more than $50,000.

Part 3.2: Tax Relief

Each year, you can enjoy tax relief of up to $16,000 when making cash top-ups to your own or your loved ones’ Special or Retirement Account:

• Up to $8,000 tax relief for topping up your own SA/RA
• Up to $8,000 tax relief for topping up your loved ones’ SA/RA

Important Notes:

• As the giver, you will enjoy the tax relief, while the recipient will not.
• Tax relief applies only up to the prevailing Full Retirement Sum (FRS).
• The $8,000 cap is shared with MediSave cash top-ups.
• Your total personal income tax relief is capped at $80,000 per year.
• CPF Board will inform IRAS automatically. So you do not need to file or claim the relief.

Eligible loved ones include:

• Parents and parents-in-law
• Grandparents and grandparents-in-law
• Spouse and siblings (must have an annual income of $8,000 or less in the previous year, or is disabled)

Pro Tip:

If you wish to enjoy even more tax savings beyond the FRS, consider topping up your Supplementary Retirement Scheme (SRS) account.

Part 3.3: Matched Retirement Sum Scheme (MRSS)

Under the Matched Retirement Sum Scheme (MRSS), eligible seniors with low retirement savings can enjoy matching grants of up to $2,000 in each calendar year, capped at $20,000 in their lifetime. Cash top-ups that receive the matching grants will not receive tax relief. Despite that, any contributions above the matched grant will continue to attract tax relief.

Part 3.4: Higher CPF LIFE Payouts

Every dollar topped up into your SA/RA increases your monthly payouts under CPF LIFE, our national lifelong annuity plan. To illustrate,

• Topping up $100 monthly from age 55 to 65 increases your payout by about $70 a month.
• Topping up $100 monthly from age 25 to 35 increases your payout by about $240 a month.

Once you have reached the Full Retirement Sum at age 55 ($213,000 in 2025), your CPF LIFE payout at age 65 ranges from $1,610 to $1,730 (Standard Plan). If you top up to the Enhanced Retirement Sum ($426,000 in 2025), the monthly payout rises to $3,100 to $3,330.

Subscribe to my newsletter to see a real life example on how you can secure a higher retirement income via the RSTU.

Part 4: Limitations of the RSTU

Part 4.1: Locked-In for Retirement

Both cash top-ups and CPF transfers to your Retirement Account are irreversible. As a result, after topping up your account, you cannot

• Withdraw the top-ups as a lump sum
• Use them for other CPF schemes, e.g. housing, education, insurance, investment
• Transfer them to loved ones later.

In effect, these monies are strictly committed to funding your CPF LIFE payouts. This restriction exists because top-ups enjoy higher interest and tax benefits. Allowing withdrawals would defeat the purpose of the Retirement Sum Topping-Up Scheme.

Before topping up, it is worth reflecting on whether you

1. Need liquidity
2. Expect to require a lump sum in retirement
3. Want to leave a legacy
4. Have sufficient cash savings outside CPF

Part 4.2: Top-Up Caps

Your age will determine the maximum amount you can top-up to your Special or Retirement Account:

• Below age 55: Top up your Special Account up to the prevailing Full Retirement Sum
• Age 55 and above: Top up your Retirement Account up to the current year’s Enhanced Retirement Sum

For example, in 2025, if you have $100,000 in your Retirement Account, a cash top-up of $8,000 gives full tax relief of $8,000. Meanwhile, if you have $210,000 in your Retirement Account, a cash top-up of $8,000 gives tax relief of only $3,000.

Part 4.3: Top-Ups are Treated as Gifts

Money topped up for your loved ones belong to them. When they pass on, the money is distributed based on their CPF nomination, not returned to you.

Next, you cannot transfer your CPF savings to your children. If you wish to help your children, you may make cash top-ups to their CPF accounts.

Part 5: Maximising Your CPF Top-Ups

Part 5.1: Top Up Early in the Year

CPF interest is computed monthly.

• Cash top-ups earn interest from the following month.
• CPF transfers earn interest immediately in the month of transfer.

Earlier top-ups mean more compounding. For example, topping up in January instead of December gives up to 20% more interest over 10 years.

Part 5.2: Regular Small Top-Ups

Monthly GIRO transfers help you build savings gradually. This encourages consistent savings habits by making cash flow planning easier.

Part 5.3: Cash Top-Up vs CPF Transfers

You can boost your own retirement savings via cash top-ups or CPF transfers. If you want to maximise tax relief, top up your Special or Retirement Account in cash. Meanwhile, if you don’t foresee any use for the savings in your Ordinary Account, transfer them to your Special or Retirement Account to enjoy the higher risk-free interest. Take note that CPF transfers do not qualify for tax relief.

You can also transfer the savings in your Ordinary Account to your loved ones’ CPF SA/RA to grow their retirement savings.

Part 5.4: Leverage on the Matched Retirement Savings Scheme (MRSS)

If you or your loved one is eligible for the MRSS, top up the Special Account or Retirement Account to receive the matching grant first. By doing so, the Government will match every dollar of cash top-ups made. This is up to a limit $2,000 per year, and a lifetime limit of $20,000. You can continue to enjoy tax relief beyond the matching cap.

Let’s take the case where you make a cash top-up of $8,000. The first $2,000 will attract the matching grant while tax relief will be given to the remaining $6,000.

Part 5.5: Topping Up from Age 55

From age 55 onwards, you can top up your Retirement Account to the Enhanced Retirement Sum each year. As the ERS increases every January, you can make further top-ups every year. This enables you to enjoy higher CPF LIFE payouts in time to come.

You can continue to top up your Retirement Account even after starting CPF LIFE, until you reach the Enhanced Retirement Sum.

Part 6: RSTU vs MediSave Top-Ups

Top-ups made to your SA/RA and MediSave Account shares the same tax relief of up to $8,000 each year. As a result, a common question I get is – which account should I top up first? Well, it depends on your goals.

Part 6.1: SA/RA top-ups are suitable if you prioritise retirement savings

Topping up your SA/RA provides a predictable lifelong income under CPF LIFE. This is ideal if you prioritise retirement savings and want to mitigate longevity risk (outliving your savings). Consider transferring funds from your Ordinary Account to your SA/RA if you don’t foresee any needs for the savings in your Ordinary Account.

Topping up your SA/RA first can provide more tax relief over time. Once you reach the Full Retirement Sum, there is no further tax relief. Moreover, working contributions and interest earned remain in your SA/RA. This helps to meet the yearly increase in the Full Retirement Sum.

Part 6.2: MA top-ups are suitable if you prioritise meeting healthcare needs

Meanwhile, topping up your MediSave Account helps meet healthcare needs. These savings can be used for medical expenses, insurance premiums, and your family’s healthcare costs. As a result, your cash top-ups help to negate some of these MediSave deductions that occur throughout the year.

After reaching the Basic Healthcare Sum ($75,500 in 2025), excess contributions and interest will flow to your SA/RA. This helps to build your retirement savings eventually.

Part 7: Final Thoughts

Singapore’s CPF system continues to earn global recognition for its strength and reliability. In the 2025 Mercer CFA Institute Global Pension Index, CPF achieved an “A” rating – a benchmark that is usually reserved for the world’s most robust retirement systems. Accordingly, you can trust that our CPF system is sustainable, transparent, and capable to meet your retirement needs.

Personally, I feel that the Retirement Sum Topping-Up Scheme offers a rare combination of high risk-free interest, attractive tax benefits, and stable lifelong retirement income. In fact, CPF LIFE remains as the most efficient insurance annuity programme in Singapore, providing the highest lifetime payouts per dollar.

That being said, the RSTU is not for everyone. It works best if you

1. Have stable surplus cash flow
2. Prefers predictable and stable income in retirement
3. Expect to live a long life
4. Want to maximise CPF LIFE payouts
5. Do not foresee much use for your OA savings

Now, here is how you can start planning for a meaningful and secure retirement: If you are below 55, top up your Special Account to the prevailing Full Retirement Sum. Besides cash top-ups, you can also transfer your CPF savings from your Ordinary Account to your Special Account to enjoy the higher risk-free interest. Altogether, this builds a strong foundation to cover essential expenses in retirement.

Once you turn 55, evaluate your desired retirement lifestyle and whether you value the certainty of a government-backed retirement payout. If so, consider making cash top-ups and CPF transfers to your Retirement Account, up to the current year’s Enhanced Retirement Sum.

Finally, start early as you cannot turn back the clock on compounding interest. The earlier you start topping up your CPF, the more your future self will thank you. Even modest and consistent top-ups can grow into a meaningful income stream. You may also use CPF’s Retirement Payout Planner or Monthly Payout Estimator to facilitate your financial planning.

Part 8: Step-By-Step Guide

For most cash top-ups via PayNow QR or OCBC Digital (CPF Mobile app only), the amount will be reflected in your CPF account almost instantly.

Part 8.1: Cash Top-Up via CPF Mobile App

1. Log in using your Singpass
2. Tap on the menu icon on the top left corner
3. Tap on “Services”, then “SA/RA Top-Up”
4. Choose “Cash Top-Up”
5. Submit your application and make your payment immediately via PayNow QR

Part 8.2: Cash Top-Up via CPF Website

1. Go to www.cpf.gov.sg/rstuform
2. Log in using your Singpass
3. Choose your preferred cash top-up method. You can top top via PayNow QR or via GIRO

Part 8.3: CPF Transfer via CPF Mobile App

1. Log in using your Singpass
2. Tap on the menu icon on the top left corner
3. Tap on “Services”, then “SA/RA Top-Up”
4. Choose “CPF Transfer” and submit your application

Part 8.4: CPF Transfer via CPF Website

1. Go to www.cpf.gov.sg/rstuform
2. Log in using your Singpass
3. Choose “CPF Transfer”

Part 8.5: Processing Timeline

• GIRO deductions occur on the 15th of each month or the next working day.
• Top-ups via GIRO are usually credited within 7 working days.
• Cash top-ups must be paid by the last day of the month to be processed in the same month.
• CPF transfers should be submitted before the 5th working day of the month to ensure timely processing.

Reference: CPF Retirement Top-Ups and Transfers