Be 2026-ready: 10 policy changes in Singapore that may impact your money

2026 will be a year of meaningful policy shifts for Singapore households with changes to CPF, MediSave, healthcare, and family support all set to reshape how we save, spend, and plan for the future.

These updates reflect Singapore’s broader social goals: supporting an ageing population, improving care affordability, and strengthening retirement adequacy without straining public finances. But for individuals, they also affect take-home pay, cashflow, and insurance planning.

Here is what is officially changing in 2026, why it matters, and how to prepare.

1. CPF ordinary wage ceiling reaches S$8,000

What is changing

The CPF Ordinary Wage (OW) ceiling – the maximum salary on which CPF contributions are computed – will increase from S$7,400 to S$8,000 in January 2026, completing the final step of the CPF strengthening plan that began in 2023.

Why it matters

Higher CPF contributions strengthen your retirement, housing, and healthcare safety nets. More funds in your CPF Ordinary Account can help pay for your HDB mortgage or invest via CPF-approved schemes. For younger workers, this compounding effect can significantly boost retirement security over decades.

The downside? Your take-home pay drops slightly, potentially affecting monthly expenses or discretionary spending. If your monthly expenses or mortgage are tight, plan for the short-term impact.

What you should do

• Recalculate your post-CPF income to understand your new monthly net.
• Adjust recurring expenses and savings accordingly.
• Consider the trade-off: more CPF means stronger long-term safety nets, but less liquidity for short-term needs.

2. Higher CPF contribution rates for older workers

What is changing

CPF contribution rates for employees aged above 55 to 65 will rise by 1.5 percentage points (about +1.0pp employee, +0.5pp employer). The increase flows mainly into the Retirement Account (RA). Employers will receive a one-year CPF Transition Offset in 2026, covering half the increase in employer contributions.

Why it matters

Singapore’s life expectancy now exceeds 83 years, and one in four citizens will be aged 65 or older by 2030. This increase helps older workers build larger retirement reserves even if they work part-time.

The trade-off: slightly lower take-home pay. For someone aged 60 earning S$5,000, the employee contribution increase of 1% equals about S$50 less cash per month, but more going into the CPF RA, which directly raises CPF LIFE payouts later.

What you should do

• If you are in the 55–65 band, run CPF projections to see the impact on your RA and payouts.
• Adjust cashflow to account for the smaller take-home.
• Employers should start factoring the higher CPF costs into their manpower budgets beyond 2026, once the offset ends.

3. Retirement and re-employment ages rise

What is changing

Singapore’s retirement age will rise from 63 to 64, and the re-employment age from 68 to 69. This continues the stepwise increases announced in 2019 to reach 65 and 70 respectively by 2030.

Why it matters

Singaporeans are living longer, healthier lives. The employment rate for residents aged 65–69 has doubled in the past decade, reaching 49.1% in 2024.

For workers, this offers more income security and CPF accumulation. For employers, it means an obligation to offer re-employment for one additional year.

What you should do

• If you are in your early 60s, start discussing re-employment and role redesign with HR now.
• Factor an extra year of earnings and CPF contributions into your retirement plan
• Employers: review HR policies and adjust workflows to retain mature workers effectively.

4. CareShield Life enhancements: Higher payout growth and premium subsidy

What is changing

From 2026, CareShield Life payouts will grow at 4% per year (up from 2%), ensuring that long-term care benefits keep pace with rising costs. To cushion premium increases, the Government has committed about S$570 million in additional subsidies.

Why it matters

Singapore’s long-term care needs are rising sharply: half of healthy 65-year-olds today are expected to become severely disabled at some point. The 4% annual payout growth means stronger protection for those needing lifelong assistance.

Premiums will rise modestly, but most Singaporeans will see only small increases because of subsidies and the ability to pay fully via MediSave.

What you should do

• Expect slightly higher MediSave deductions from 2026.
• Review your CareShield Life letter from MOH or your insurer for premium details.
• Consider supplement plans from private insurers if you want higher monthly benefits.
• Keep sufficient MediSave or liquid reserves so small premium changes do not disrupt coverage.

5. MediSave and healthcare enhancements

What is changing

Several healthcare-related enhancements begin in 2026:

• Outpatient scans: The annual MediSave withdrawal cap doubles from S$300 to S$600 (from 1 Jan 2026).
• Dental care: From mid-2026, Flexi-MediSave will cover restorative dental procedures such as permanent crowns and root canals for seniors aged 60+.
• Home healthcare: From April 2026, subsidies under the Seniors’ Mobility & Enabling Fund (SMF) expand to cover more consumables (e.g., underpads, stoma supplies), and Home Caregiving Grant (HCG) payouts increase from S$400 to up to S$600 per month for eligible caregivers.
• Fertility procedures: From June 2026, MediSave and MediShield Life will cover surgical and pre-/post-procedure costs for embryo freezing, egg freezing, and ovarian tissue freezing.

Why it matters

These changes reflect Singapore’s twin priorities: helping seniors age at home and supporting families to have children.

• For seniors, more outpatient and dental costs can now be funded via MediSave instead of cash.
• For families, expanded fertility coverage reduces cost barriers that previously discouraged fertility preservation.

What you should do

• Seniors: plan elective scans or restorative dental work for mid-2026 onwards to benefit from new coverage.
• Caregivers: recheck your loved one’s eligibility for enhanced SMF or HCG subsidies.
• Couples considering fertility preservation: confirm which procedures are eligible under MediSave before scheduling in 2026.

6. Matched MediSave Scheme (MMSS)

What is changing

A new Matched MediSave Scheme (MMSS) will run from 2026 to 2030, matching dollar-for-dollar voluntary cash top-ups to MediSave for eligible Singaporeans aged 55 to 70, up to S$1,000 per year.

To qualify, individuals must have an average monthly income of S$4,000 or less, own no more than one property, and have a MediSave balance below half the Basic Healthcare Sum (BHS).

Why it matters

The MMSS helps seniors with lower MediSave balances catch up, ensuring they have enough for outpatient and long-term care expenses. MediSave balances are critical for managing premiums under MediShield Life and CareShield Life, especially as healthcare costs rise faster than general inflation.

What you should do

• If you qualify, plan $1,000 voluntary MediSave top-ups each year to capture the full match (no tax relief on matched top-ups).
• Check your eligibility through CPF when applications open in early 2026.
• Families may also help eligible seniors make these top-ups.

7. Matched Retirement Savings Scheme (MRSS) expansion

What is changing

The MRSS, which matches up to S$2,000 a year (lifetime cap S$20,000) in voluntary CPF top-ups, will expand to include eligible Singaporeans with disabilities of all ages from 2026. Previously, only those aged above 55 qualified.

Why it matters

This enhancement extends the same dollar-for-dollar CPF matching to younger persons with disabilities (PWDs), improving their long-term retirement adequacy.

What you should do

• Eligible PWDs: register with MSF to verify status.
• Families and caregivers: plan top-ups early each year to maximise matching.
• Use CPF’s Retirement Account Top-Up calculator to estimate future returns.

8. Shared Parental Leave increases to 10 weeks

What is changing

For births or adoptions on or after 1 April 2026, fathers can take up to 10 weeks of Government-paid Shared Parental Leave (up from six weeks).

Why it matters

This expansion encourages shared caregiving and supports dual-income households. With Singapore’s total fertility rate at 0.97 in 2024 (DOS), pro-family policies like this are essential to support working parents.

What you should do

• Expecting couples: coordinate leave planning early with HR, especially if one parent’s leave is unpaid.
• Employers: prepare for longer parental leave durations and adjust workforce coverage plans.

9. SkillsFuture Jobseeker Support extends to Permanent Residents (PRs)

What is changing

The SkillsFuture Jobseeker Support Scheme, launched for citizens in April 2025, will be extended to Permanent Residents in early 2026. It provides up to S$6,000 over six months for those who are involuntarily unemployed, provided they meet income/property criteria and take up approved training.

Why it matters

This closes a long-standing gap for PRs who contribute CPF but previously lacked unemployment safety nets. It also incentivises reskilling in growth sectors such as tech, sustainability, and healthcare.

What you should do

• PRs: track application timelines through WSG and prepare required income and property documents.
• Plan ahead: identify courses relevant to your career to use this window strategically.

10. New housing pathway for public rental families

What is changing

From 2026, eligible first-timer families with children living in public rental flats can purchase 2-room Flexi or 3-room flats on shorter leases under the enhanced Fresh Start pathway.

Why it matters

This gives lower-income families a realistic route to home ownership, helping them build housing equity over time – a key step toward long-term financial stability.

What you should do

• If you are a rental tenant with children, approach HDB or ComLink+ to check eligibility and plan your transition to ownership.
• Consider lease length carefully: shorter leases lower upfront cost but may limit resale gains later.

Summary: What to expect and how to prepare

The 2026 policy landscape is designed to strengthen long-term resilience: boosting savings for older workers, expanding MediSave and care coverage, and extending social safety nets. But it also means short-term adjustments to cashflow and planning.

Here is what to do now:

• Run your CPF projection: incorporate the S$8,000 OW ceiling and higher contribution rates.
• Reassess liquidity: ensure emergency cash covers the slight dip in take-home pay.
• Top up strategically: use MRSS and MMSS if you qualify; they are guaranteed 100% returns.
• Plan healthcare wisely: schedule major scans, dental, or caregiving needs around 2026 to benefit from new limits and subsidies.
• Update HR and family plans: for Shared Parental Leave, caregiving grants, and retirement transitions.

The key takeaway:

Singapore’s financial ecosystem is evolving from “support in crisis” to “self-sufficiency with support.”

By anticipating these 2026 shifts, households can align their finances early, turning policy change into planning advantage.