The Singapore government has announced the extension of the 4% interest rate floor on Special, MediSave, and Retirement Account (SMRA) monies until 31 December 2027. This decision, effective from 1 January 2027, aims to help members grow their retirement savings by ensuring stable returns in an uncertain economic climate.
The interest rate for SMRA will remain at 4% per annum from 1 October to 31 December 2026, as the pegged rate remains below this floor. The rate is linked to the 12-month average yield of 10-year Singapore Government Securities plus 1%. Meanwhile, the Ordinary Account (OA) interest rate will stay at 2.5% per annum for the same period, with the Housing Development Board (HDB) concessionary interest rate for housing loans remaining at 2.6%.
To further support retirement savings, CPF members will continue to earn extra interest. Those below 55 will receive an additional 1% on the first $60,000 of their combined balances, whilst members aged 55 and above will earn an extra 2% on the first $30,000 and an additional 1% on the next $30,000. The extra interest on OA balances will be channelled into the member’s Special or Retirement Account.
This extension provides CPF members with a measure of financial security, ensuring their savings continue to grow despite fluctuating market conditions.
