Maximizing Your 4 CPF Accounts: A Guide for 2026

Quick Overview

OA (Ordinary Account): A versatile account for home purchases, education, and investments.

SA & RA (Special/Retirement Account): High-interest (4%) accounts dedicated to your retirement.

MA (MediSave Account): A dedicated account for medical expenses and insurance for you and your family.

If you are working in Singapore or have obtained Permanent Residency (PR), you have likely looked at your monthly CPF contributions and wondered, "How can I manage this money more effectively?" Many people find the four-account system confusing at first, but it is much more than just a pension fund—it is a core tool for wealth management in Singapore.

With significant policy changes rolling out through 2025 and 2026, it is crucial to stay informed. Today, I will break down the characteristics of each account and provide practical strategies based on the latest 2026 guidelines.

Utilizing the OA (Ordinary Account) for Housing

The OA is the most flexible account. It offers a 2.5% annual interest rate and is primarily used for property purchases and education. The biggest advantage is that you can use your OA balance directly for downpayments or monthly mortgage installments when buying an HDB flat or a private condo.

Property Purchase: Can be used for loan repayments and legal fees for HDB or private properties.
Education: Can be used as a tuition fee loan for yourself or your children at local universities (NUS, NTU, etc.).
Investment (CPFIS-OA): If your balance exceeds SGD 20,000, you can invest the excess in stocks, REITs, or gold.
Salary Ceiling Increase: Starting January 1, 2026, the monthly salary ceiling will rise to SGD 8,000. This means higher earners will accumulate more in their OA, increasing their capacity for housing loan repayments.

The Engine of Retirement: Changes to SA and RA

The Special Account (SA) is a favorite for many due to its guaranteed 4% interest rate. However, a major change affects residents aged 55 and above starting January 19, 2025: the SA will be closed upon reaching age 55. This effectively ends the popular "SA Shielding" strategy.

SA (Below age 55): A long-term savings account for retirement with a high 4% interest rate. If the balance exceeds SGD 40,000, you can invest in low-risk products.
RA (Retirement Account): Automatically created at age 55. Funds from your OA and SA are transferred here to fund CPF LIFE, your lifelong retirement income.
ERS Limit Increase: From 2025, the Enhanced Retirement Sum (ERS) limit has increased from 3 times the Basic Retirement Sum (BRS) to 4 times. For 2026, the ERS is set at SGD 440,800. Depositing more into this account ensures a significantly higher monthly payout later in life.

Account Type	Primary Use	Annual Interest Rate (2026)
OA (Ordinary)	Housing, Education, Investment	2.5%
SA (Special)	Retirement Savings (Under 55)	4.0%
MA (MediSave)	Medical Expenses, Insurance	4.0%
RA (Retirement)	Retirement Income (55+)	4.0%

MA (MediSave Account) for Medical Security

The MA is a reliable account that covers medical expenses for both you and your family. It earns 4% interest and can be used for hospitalizations and specific outpatient treatments. Crucially, it can pay for the premiums of your Integrated Shield Plan (private insurance).

Insurance Premiums: Use MA to pay for MediShield Life and the base premiums of private Integrated Shield Plans (IP) to save on cash out-of-pocket.
BHS (Basic Healthcare Sum): This is the maximum amount you can hold in your MA. For 2026, it is set at SGD 79,000. Any contributions exceeding this limit automatically flow into your SA (if under 55) or RA (if 55 or older), continuing to earn high interest.
Family Coverage: You can use your MA to pay for the medical expenses of your spouse, children, or parents, making it a comprehensive family healthcare fund.

5 Practical Tips for CPF Management

For those looking to manage their CPF wisely, here are some tips I personally follow. These are especially important for Permanent Residents (PRs) to maximize their benefits.

Top up with cash in January: Making a cash top-up to your SA or RA can provide tax relief of up to SGD 8,000 per year. Doing this in early January rather than December allows you to earn a full year of compound interest.
Top up for family members: You can receive an additional SGD 8,000 in tax relief by topping up the accounts of your parents or spouse, potentially bringing your total tax deduction to SGD 16,000.
Manage your MA balance: Once your MA reaches the BHS (approx. SGD 79,000), subsequent contributions flow into your SA or RA, automatically boosting your retirement fund while maintaining a 4% interest rate.
Adjust strategy before age 55: Since the SA will close in 2025 for those turning 55, consider manually transferring funds to your RA to hit the ERS limit and lock in higher retirement payouts.
Balance OA and Housing Loans: Since the OA interest rate is 2.5%, if your mortgage interest rate is higher, it may be beneficial to use your OA balance to pay down the loan principal and reduce interest costs.