CPF floor interest rate of 4% extended through 2027 for Singapore retirees

In a press release issued on September 22, the CPF Board and the Housing and Development Board said the 4% minimum interest rate for Central Provident Fund Special, MediSave and Retirement accounts will be maintained through 2027. The move is intended to help Singaporeans grow their retirement savings despite uncertain economic conditions and shifting global rates. The Ordinary Account rate will also stay at its 2.5% floor for the fourth quarter, as the pegged rate remains below that threshold.

Consequently, the HDB concessionary housing loan rate, set at 0.1% above the Ordinary Account rate, will hold steady at 2.6% per annum. The announcement follows the U.S. Federal Reserve's recent rate hike, which can indirectly affect Singapore's financing costs. Additional interest subsidies will continue for members under 55 and for those 55 and older, with extra credits applied to Special or Retirement accounts.