From 1M65 to 10M65: 10 wealth-building lessons learnt from 20 years of using CPF

Loo Cheng Chuan coined '1M65' to make a single point: an ordinary Singaporean couple, by maxing CPF contributions throughout their careers and never pulling money out early, could retire with over $1 million in CPF by 65. The idea worked because the numbers supported it. Seven years on, the goal has shifted to '10M65', because the same engine that produces $1 million can produce $10 million if you add SRS, a disciplined index fund habit, and a second earner. These 10 wealth-building lessons, drawn from 20 years of using CPF in practice, show exactly how the journey from 1M65 to 10M65 unfolds and what the 2026 figures mean for anyone starting or already part-way through.

What 1M65 and 10M65 actually mean

The 1M65 movement started from a personal challenge its founder set himself: reach $1 million in CPF by age 65 without inheriting wealth, running a business, or taking concentrated investment bets. The answer turned out to be CPF's compounding rates. At 4% a year guaranteed on your Special Account, $220,400 (the 2026 Full Retirement Sum) today becomes roughly $700,000 in 30 years from interest alone, before any additional contributions.

The 10M65 target takes the same principle further. CPF is one leg, but it caps out at the Enhanced Retirement Sum of $440,800 per person (the 2026 ceiling). The path to $10 million total wealth by 65 runs through three additional engines: the Supplementary Retirement Scheme (SRS), a globally diversified index fund portfolio, and in most cases a second earner. Each engine is manageable on a normal salary. Combined over a 35-to-40-year career, they can reach a number that sounds outlandish but is structurally straightforward.

The 10 lessons below are not abstract principles. They are observations from the movement about which decisions moved the needle most over 20 years of real CPF use, updated with the 2026 figures that govern what you can actually do today.

Lessons 1 to 4: getting the compounding foundation right

Lesson 1: compounding has two phases, and most people quit in the first one

The most common reason people abandon the 1M65 plan is that CPF compounding looks underwhelming in the early years. If you have $30,000 in your SA, 4% interest is $1,200 a year. That feels small. The temptation to invest elsewhere in something that might grow faster is real.

The turn happens when your CPF balance crosses roughly $100,000 to $150,000. At $200,000, 4% is $8,000 a year. At $440,800, the 2026 Enhanced Retirement Sum ceiling, 4% is $17,632 a year, and because it is compound interest it builds on itself every year after that. The people who reach 10M65 territory are mostly people who endured Phase 1 without making large withdrawals or redirecting their savings somewhere else.

The lesson is not to avoid investing outside CPF. It is to keep CPF contributions consistent even when the returns feel invisible, because Phase 2 rewards the years you stayed put.

Lesson 2: starting at 22 is worth more than being clever at 32

Ten extra years of 4% compounding on $10,000 is the difference between $36,000 and $52,000: roughly $16,000 from doing nothing except waiting. Across a full CPF balance, starting at 22 versus 32 can produce a difference of several hundred thousand dollars by 65. No investment strategy in Phase 2 easily makes up that gap.

The practical implication is to begin top-ups early, even small ones. A $1,000 SA top-up at 22 has 43 years to compound. At 4%, that single contribution becomes just under $5,300. The same $1,000 added at 32 becomes $3,600. Starting young is the one structural advantage CPF gives you automatically, if you use it. The cash top-up to your SA guide covers how to make the top-up and claim the tax relief.

Lesson 3: the Special Account is the best guaranteed rate available in Singapore

The SA earns 4% per year, guaranteed by the government, with a floor that has been in place for years and was extended again through 31 December 2026. You also earn an additional 1% on the first $60,000 of your combined CPF balance, with up to $20,000 counted from the OA. That takes the effective return on smaller balances above 4%.

Compare this to Singapore Savings Bonds, which currently yield around 2.6% to 3.0% for 10-year average returns, or to fixed deposits at major banks, which sit below 2.5%. The SA beats these on rate, and the money compounds free of income tax. The cost is illiquidity: money in your SA is locked until 55, then transferred to your RA. If you are genuinely sure you will not need the money before retirement, the SA is a hard instrument to beat for guaranteed returns. The full rate picture is in the CPF interest rates guide.

Lesson 4: every RSTU top-up earns 4% from day one

The Retirement Sum Topping-Up (RSTU) scheme lets you put fresh cash into your SA (if you are under 55) or RA (if you are 55 and above) and earn 4% immediately. In 2026, you can get tax relief on up to $8,000 of cash top-ups to your own CPF, plus another $8,000 for top-ups to eligible family members, for $16,000 of potential relief in a single year.

The tax saving is real money. If you are in the 11.5% bracket, an $8,000 top-up saves you $920 in income tax. In the 15% bracket, the saving is $1,200. That is an immediate 11.5% to 15% return on the tax portion of your top-up, on top of the 4% compounding from year one. Taken together, the effective return on an SA top-up is considerably higher than the headline 4% for anyone paying income tax.

The ceiling is the FRS ($220,400 in 2026) if you are below 55. Once your SA reaches the FRS, further RSTU top-ups are blocked. That is the point at which shifting attention to SRS starts to make sense.

Lessons 5 and 6: housing choices and the spouse engine

Lesson 5: your housing decision is your biggest CPF decision

Using CPF Ordinary Account money to fund a large private property has a cost most buyers underestimate. When you sell the property, you must refund the CPF amount you withdrew plus the accrued interest it would have earned at 2.5% a year. If you withdrew $300,000 over 10 years, you might owe CPF close to $385,000 on sale. That money goes back into your OA, not your pocket.

The 1M65 approach treats housing as infrastructure, not investment. It favours keeping the OA intact or, where housing CPF is used, choosing properties at a scale that leaves the CPF balance meaningful. Owning a modest HDB flat and paying in cash wherever possible preserves the SA's compounding runway. People who upgraded through multiple private properties often found they were in effect consuming their CPF compounding to fund the transaction costs and refunds of each move.

The related nuance is the voluntary housing refund. After you have sold a property and received the refund into your OA, you can voluntarily redirect those funds into your RA to approach the ERS ceiling. This is one of the more powerful post-55 moves, and lesson 10 covers it in more detail. The CPF property pledge guide explains how pledging a property affects what you must keep in your RA.

Lesson 6: two earners compound to much more than double

The spouse multiplier is the most underrated structural advantage in the 1M65 framework. Two people, each earning $6,000 a month, together contribute about $4,440 per month to CPF at the combined 37% contribution rate for employees under 35. That is $53,280 a year. Over 30 years at a blended 4% CPF return, the combined CPF balance approaches $3 million without a single voluntary top-up.

The reason it compounds to more than double a single person's balance is not just arithmetic. Two earners also tend to split household costs, so each has more disposable income for SA top-ups and SRS contributions. Two SRS accounts mean $30,600 a year in SRS contributions instead of $15,300, and twice the potential tax relief over a full working life.

The 10M65 target is the total wealth of a couple across CPF, SRS, and investments. It becomes more tractable when both earners treat retirement saving as a shared project from early in their careers. The structural combination of CPF, SRS, and consistent investing makes a number that previously sounded absurd into a realistic long-term outcome for disciplined dual-income households.

Lessons 7 to 10: SRS, investing, and the post-55 playbook

Lesson 7: SRS is the most ignored retirement engine Singapore offers

Singaporeans and PRs can contribute up to $15,300 per year to their Supplementary Retirement Scheme account and deduct every dollar from their taxable income. The SRS account earns 0.05% in cash if left idle, but you can invest the balance in stocks, ETFs, unit trusts, and insurance products inside the SRS wrapper.

The tax saving alone makes SRS worthwhile if you are paying any meaningful income tax. At $15,300 per year in the 11.5% tax bracket, the saving is about $1,760 per year. Over a 30-year career, that is $52,800 in tax you did not pay, which itself compounds if reinvested. The invested balance inside SRS is only taxed at withdrawal, and only 50% of withdrawals from age 62 are taxable, spreading the tax burden across retirement years when your income is typically lower.

SRS invested in a low-cost global equity index fund over 30 years, at a modest assumed 6% annual return, grows $15,300 per year into roughly $1.28 million. Two SRS accounts at this rate produce just over $2.5 million. That is a significant contribution to the 4M65 and 10M65 totals. The SRS vs CPF top-up comparison covers which to prioritise each year given your SA balance.

Lesson 8: outside CPF, keep it simple and global

The investment advice that emerges most consistently from the 1M65 and 10M65 community is not to pick stocks, not to concentrate in Singapore REITs, and not to try to time the market. It is to invest in a globally diversified equity index fund, add to it regularly, and leave it alone. The S&P 500 and the MSCI World index have both produced long-run annual returns of around 7% to 10% in USD terms, before inflation, over multi-decade periods.

The reason this matters for 10M65 is that CPF and SRS together, even fully maximised, will not reach $10 million for most couples. The gap between $3 million to $4 million from CPF and SRS combined and $10 million has to come from an investment portfolio. To reach $10 million in total net worth by 65 from a standing start at 25, a couple would need to invest roughly $2,000 to $3,000 per month outside CPF and SRS at 7% annual return over 40 years. That is demanding but achievable for dual-income households who keep housing and lifestyle costs controlled.

The CPFIS guide explains why most SA money should stay at 4% rather than be invested through CPF, since most CPFIS funds do not consistently beat the guaranteed rate net of fees.

Lesson 9: market crashes are not losses, they are accelerated contributions

The COVID-19 crash of March 2020 cut global equity markets by 30% to 35% in a few weeks. The 2022 rate-hike cycle produced a drawdown of around 25% in the S&P 500 and 30% or more in many growth-heavy portfolios. In both cases, people who added to their index funds during the worst months bought units at prices that recovered sharply within 12 to 18 months.

The discipline of treating a crash as a buying event rather than a reason to pause is the behavioural lesson that separates those who reach 4M65 from those who stop at $800,000. This requires having cash reserves set aside specifically for market downturns, and it requires not needing to sell at the bottom because all living expenses are covered by income. The CPF foundation, guaranteed at 4% with no market exposure, provides the psychological ballast that makes it possible to be aggressive with the investment portfolio during a crash.

You do not need to predict crashes. You need to have some dry powder ready when they happen and the conviction to deploy it when prices are 20% or more below their previous peak.

Lesson 10: at 55, new CPF tools open and the strategy changes

When you turn 55, your SA balance up to the Full Retirement Sum ($220,400 in 2026) is transferred into a new Retirement Account. Your OA balance remains, and you can withdraw any amount above the FRS from your combined OA and SA, subject to meeting the BRS with a property pledge. The CPF withdrawal guide for age 55 has the full conditions and examples.

The more powerful move at 55 is topping up your RA to the Enhanced Retirement Sum, which is $440,800 in 2026. At the ERS, CPF LIFE (Standard Plan) pays an estimated $3,440 per month from age 65, for the rest of your life. For many retirees, covering core living expenses with CPF LIFE and letting the investment portfolio grow untouched until needed is a better structure than drawing down the portfolio first.

The voluntary housing refund is the other key post-55 tool. If you sold a property and your CPF refund went into your OA, you can voluntarily redirect those OA funds into your RA up to the ERS ceiling. This shifts money from the 2.5% OA into the RA earning 4%, and it increases your eventual CPF LIFE payout. The CPF retirement sum guide has the full 2026 figures for BRS, FRS, and ERS.

1M65, 4M65, and 10M65 compared

Each milestone requires a different set of engines. The table below shows what it realistically takes to reach each target by 65, starting from a typical working adult at 25 or 30.

What each CPF wealth milestone requires (couple starting around age 25 to 30)
Target by 65CPF engineSRS engineInvestment portfolioKey behavioural requirement
1M65 ($1M in CPF)Both spouses max SA contributions and top-ups; no large early withdrawalsOptionalNot requiredConsistency over 35+ years; no early CPF withdrawals
4M65 ($4M total)Both spouses max CPF; refund housing CPF at 55; top RA to ERSBoth contribute $15,300 per year; invest in index funds inside SRSAround $500K to $1MDual income; avoid lifestyle inflation that consumes SRS headroom
10M65 ($10M total)Both spouses max CPF across entire career; no large OA withdrawalsBoth max SRS ($15,300 per year) for 30+ years invested in index funds$5M to $6M from disciplined monthly investing over 35 to 40 yearsDeploy extra cash in market crashes; keep housing and car costs modest

The 2026 CPF figures that drive the whole strategy

The 1M65 to 10M65 strategy depends on specific CPF parameters that change each year. The table below covers the key 2026 numbers.

Key CPF and SRS figures for 2026
Parameter2026 figureNotes
OA interest rate2.5% p.a.Floor rate; additional 1% on first $20,000 OA (part of $60,000 combined bonus cap)
SA / MA / RA interest rate4% p.a.Floor extended by government through 31 December 2026
CPF Annual Limit$37,740Total mandatory plus voluntary contributions per person per calendar year
Ordinary Wage ceiling$8,000 per monthEffective from 1 January 2026; CPF contributions capped on OW above this
BRS for members turning 55 in 2026$110,200CPF LIFE Standard Plan pays approx $950 per month from 65
FRS for members turning 55 in 2026$220,400CPF LIFE Standard Plan pays approx $1,780 per month from 65
ERS for members turning 55 in 2026$440,800Maximum RA top-up; CPF LIFE Standard Plan pays approx $3,440 per month from 65
SRS limit (citizens and PRs)$15,300 per yearFully deductible from taxable income; 50% of withdrawals from age 62 are taxable

Frequently asked questions

Is the 1M65 target still realistic in 2026?

Yes, for couples who start early and stay consistent. If two spouses each earn $5,000 to $6,000 a month and make regular SA top-ups throughout their careers without withdrawing CPF early for housing, the combined CPF balance can exceed $1 million by 65. The SA floor rate of 4%, confirmed through December 2026, is the main driver. The key risk is not the interest rate: it is early withdrawals, particularly large OA withdrawals for private property that are not refunded before retirement.

Can I reach 10M65 on an average Singaporean salary?

Not easily on a single salary, but plausibly on a dual income over a long career. The $10M target is a total net worth figure across CPF, SRS, and investments, not CPF alone. For a couple each earning $6,000 to $8,000 a month who max CPF, contribute $15,300 each to SRS annually, and invest $2,000 to $3,000 a month in index funds for 35 to 40 years, the numbers can reach $10 million at a 7% long-run portfolio return. It requires disciplined saving across the whole career, not a single lucky break.

What is the difference between the BRS, FRS, and ERS in 2026?

These are the three tiers of the CPF Retirement Sum, set each year by the CPF Board. The Basic Retirement Sum (BRS) for those turning 55 in 2026 is $110,200. Meeting the BRS with a property pledge means you can withdraw the rest of your CPF at 55. The Full Retirement Sum (FRS) is $220,400, always twice the BRS, and the standard target for most members. The Enhanced Retirement Sum (ERS) is $440,800, the maximum you can top up your Retirement Account to, and it produces the highest CPF LIFE payout of around $3,440 a month from age 65.

Should I use CPFIS to invest my SA?

For most people, no. The SA earns 4% guaranteed, confirmed through 2026. To beat 4% net of fees inside CPFIS, you need funds or stocks that return above 4% consistently over decades after management fees and transaction costs. Most CPFIS investors, based on CPF Board data, would have done better leaving their SA at 4%. There are narrow exceptions, for example if you want equity exposure inside your CPF and are willing to accept market risk, but for the core 1M65 strategy, leaving SA money at the guaranteed rate is usually the right call.

When does it make more sense to top up SRS instead of CPF SA?

Once your SA reaches the Full Retirement Sum of $220,400 (the 2026 ceiling for RSTU top-ups below age 55), you can no longer make RSTU cash top-ups to the SA. SRS becomes your main tax-advantaged vehicle at that point. Even before reaching the FRS, if you have already claimed your $8,000 CPF cash top-up relief for the year, SRS is the logical next dollar. SRS also gives you investment flexibility: you can hold index ETFs, unit trusts, and shares inside SRS, unlike the SA which earns only the fixed CPF rate.

Sources

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This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.