CPF Life And Monthly Payouts When You Retire in Singapore: You Must Know These: Retirement planning can be daunting. You may have questions on how to plan for your golden years and whether you would have enough savings. In this article, we discuss this in detail.
CPF Life And Monthly Payouts When You Retire in Singapore
CPF Lifelong Income for the Elderly is a national longevity insurance annuity scheme that provides you with monthly payouts no matter how long you live, so you never have to worry.
Why do we need CPF LIFE?
Nobody can predict how long anyone will live. With technology and healthcare becoming more advanced, we are likely to live longer than our parents and grandparents. Your golden years are to be celebrated, but what if you run out of retirement savings when you are old, frail and no longer able to work? With CPF LIFE you don’t need to worry. you can continue receiving a retirement income no matter what age you live to.
How much CPF monthly payout can I receive?
It depends on several factors, including the age when one sets aside the enhanced retirement Sum (ERS) and when one starts payouts.
The ERS in 2025 is $426,000 illustrations on estimated monthly payouts for members who top up to ERS in 2025:
- Members who top up on reaching age 55 in 2025 can get CPF LIFE monthly payouts of $3,100-$3,300 for life from age 65.
- Members turning 65 in 2025 who had previously set aside their cohort Full Retirement Sum at age 55 can receive CPF LIFE monthly payouts of $2,500-$2,700.
- You can use the Monthly payouts estimator to estimate your payouts if you top up to the raised ERS.
How CPF LIFE can help in your Retirement
- The CPF LIFE long Income for the Elderly (CPF LIFE) scheme is a national annuity scheme that provides monthly retirement payouts for as long as you live.
- There are 3 CPF LIFE plans to cater to different retirement needs- The Basic plan, the Standard plan and the Escalating plan.
- You can increase your CPF LIFE payouts by topping up your CPF account or different the payout date.
It is hard to spend too much too soon and we might not have enough if we live longer than we expect; spend too little and we might deprive ourselves of fully enjoying our retirement. This is a major dilemma.
Here are 5 things you need to know about CPF LIFE
1. How does CPF LIFE provide for retirement?
When you join CPF LIFE, the premium for your CPF LIFE plan will be paid with CPF Retirement Account (RA) savings. Generally, this premium goes into the lifelong income fund which will generate the CPF LIFE monthly payouts for life.
2. Which CPF LIFE Plan should I choose?
Everyone`s retirement needs and expectations are different ask yourself what kind of retirement income you would need.
The escalating Plan could be more suitable as the payouts increase by 2% each year to protect against inflation.
Both the Standard Plan and Basic Plan provide monthly payouts that are relatively level. For the Basic Plan, the monthly payouts are lower but its bequest is higher than that of the standard plan, up to about age 90.
For the CPF Life Basic Plan, only about 10-20% of your RA savings will be deducted as CPF LIFE premium when you join CPF LIFE.
3. How much money will I get monthly for Under CPF LIFE
The ERS in 2025 is $426,000 illustrations on estimated monthly payouts for members who top up to ERS in 2025:
- Members who top up on reaching age 55 in 2025 can get CPF LIFE monthly payouts of $3,100-$3,300 for life from age 65.
4. how can I increase my CPF LIFE monthly payouts
There are 2 ways for you to increase your CPF LIFE Payouts:
- By topping up your RA
- Defer your CPF LIFE payouts
5. How is CPF LIFE different from the retirement Sum Scheme (RSS)
Both of them are annuities that provide payouts for your retirement. There are main 2 differences in the RSS, your payouts will stop once your RA savings are depleted. For CPF LIFE, you continue to get payouts no matter how long you live.
Those who were born before 1958, would automatically join the RSS, However, they have the option to switch to CPF LIFE at any time before turning 80.