You have reached 65, the start of your retirement. You are expecting monthly payment from your CPF Life, but how much are you getting? Why hasn’t CPF notify you about choosing your plan? How much can I pass on to my loved ones? We will try to answer these questions in this post.

What is CPF Life?

CPF LIFE is Singapore’s national annuity scheme, designed to provide Singaporeans and permanent residents with a steady income during their retirement years. Managed by the CPF Board, it’s part of the larger CPF system, specifically focusing on ensuring lifelong payouts.

Key Features of CPF LIFE:

1. Lifelong Monthly Payouts: From age 65, CPF LIFE provides monthly payouts to retirees for as long as they live. The amount depends on the CPF savings they’ve set aside in their Retirement Account.
2. Three Payout Plans:
   • Basic Plan: Offers lower monthly payouts with a higher bequest amount for beneficiaries.
   • Standard Plan: Offers balanced monthly payouts and bequest amounts.
   • Escalating Plan: Starts with lower monthly payouts that increase by 2% each year, helping retirees manage inflation.
3. Flexible Payout Start Age: Members can begin your CPF LIFE payouts anytime between 65 and 70. Deferring your start date increases your monthly payout by up to 7% for each year you wait, offering a higher monthly income if you start later. If no choice is made, payouts will automatically start at age 70 under the Standard Plan.

How much do you need to put aside?

Depending on which year you hit age 55, the amount you require differs.

For example, if you are turning 55 in the year 2025, you are advised to have $213,000 in your retirement account. You can further top up your retirement account to Enhance Retirement Sum to enjoy a bigger monthly payout. Alternatively, you can also reduce your retirement account to the Basic Retirement Sum upon meeting certain requirements.

What is the best option?

Making the best out of CPF Life can be overwhelming. Luckily, we conduct seminars designed to help you understand the best options available. Feel free to reach out to secure your slot. I’m here to guide you through these choices and ensure your retirement plans stay on track.