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Surf through your golden years with CPF LIFE

27 Mar 2020 
SOURCE: CPF Board

As you get closer to retirement, you’ll want to ensure that everything is in place, especially when it comes to your finances — and that’s where CPF LIFE comes in. 

CPF LIFE is a national longevity insurance annuity scheme that will provide you with lifelong monthly payouts in retirement. Here are some benefits of CPF LIFE that you can leverage to strengthen your retirement plan. 

Surf through your golden years with CPF LIFE​​​​


​​​Receive monthly payouts for as long as you live​

When you turn 55 years old, a Retirement Account (RA) will be created for you. The savings from your Special Account and Ordinary Account (up to your Full Retirement Sum) will be transferred to your RA. This amount in your RA will be used to join CPF LIFE, which will provide you with monthly payouts in your golden years for as long as you live. As Singaporeans are now living longer, these lifelong payouts are all the more important to ensure that you will not run out savings for your needs in old age when income may be the hardest to come by!

Pick the CPF LIFE plan that best suits your retirement needs

There are three CPF LIFE plans for you to choose from –– the Standard Plan, the Escalating Plan, and the Basic Plan.

The plans differ in terms of the monthly payouts that you would receive.​

Standard Plan (default)^ Escalating Plan^ Basic Plan^ 
Higher level monthly payoutsMonthly payouts that start lower but increase by 2% yearlyLower monthly payouts*

*The Basic Plan monthly payouts will get progressively lower when your combined CPF balances fall below $60,000. This is due to less extra interest earned.
^Any CPF LIFE premium balance together with any remaining CPF savings will be distributed in cash to your beneficiaries after your death.

With three CPF LIFE plans to choose from, you have the flexibility to pick the one that works best for your retirement needs!  Ask yourself what kind of retirement income you would need. For example, if you are worried about things being more expensive as the years pass, then you need a retirement income that increases every year. The Escalating Plan has this feature. 


If you prefer to keep within a fixed budget even if it means that you can afford to buy less as prices rise every year, the Standard Plan has a level payout. 

If you don’t mind starting with a lower monthly payouts which will be progressively lower later on, then the Basic Plan is good enough. 

Your choice of plan depends on what you value. All three plans will give a payout for as long as you live, but at different amounts. All three plans allow you to enjoy the interest earned. In all three plans, the CPF LIFE premium balance (if any) together with any remaining CPF savings upon death will be transferred to your beneficiaries.


Choose to start your payouts later to receive more each month


You can start your retirement payouts from age 651​. However, you have the option to start your monthly payouts later, up to age 70. For every year that you defer, your monthly payouts will increase by up to 7%! If you plan to continue working or have other sources of income for retirement, this is something you can consider to boost your monthly payouts.

Now that you know more about how CPF LIFE can benefit you in retirement, read on to find out more about CPF LIFE here!

1 ​Refer here for more information on Payout Eligibility Age ​​​(under “Why do I need to set aside a retirement sum?”).

Last updated as at 23/11/2020.

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