What’s your role at each stage of your parents’ retirement

05 May 2017 

Through the years, you could always count on your parents to give you valuable advice when you needed it - from where you should head after your ‘O’ Levels to whether that boy or girl was worth dating.


Now it’s your turn to guide them as they approach the next phase of their life. Here’s how you can support your parents at each stage of their retirement planning.

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Before 55

Even before they turn 55, your parents should have an idea of what they plan to do in retirement.


Based on their desired lifestyle, you can help them calculate how much they need in retirement and decide which of the three CPF retirement sums they should save towards. Each provides a different amount of monthly payout from CPF LIFE and serves as a source of lifelong retirement income they can build upon.

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At 55

When your parents turn 55, they have the option of withdrawing up to $5,000 of their CPF savings, or any remaining CPF balances (excluding top-up monies, government grants, and interest earned in their RA) after setting aside the applicable Full Retirement Sum (FRS) or Basic Retirement Sum (BRS) with sufficient CPF property charge/pledge.


However, if they do not need this amount yet, you can advise your parents to leave it in their Retirement Account to earn attractive interest up to 6%* per annum. These savings can be withdrawn anytime later when necessary.


At 65

As they are nearing their payout eligibility age of 65, your parents will have to choose one of the three CPF LIFE plans. You can highlight the differences between the plans to them as below, and help your parents make a more informed decision.

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If your parents do not need their CPF LIFE payouts at 65, they also have the option of deferring them up to age 70. Their monthly payouts will increase by up to 7% for each year deferred, so it may be something you should advise your parents to consider.


Ready to share what you’ve learnt with your parents? Their journey to retirement has only just started, and you can continue to give them your fullest support!


Find out how you can manage your financial responsibilities as an adult by following @cpf_board on Instagram! #ICanAdult and face the challenges ahead one step at a time!


*The first $60,000 of your combined CPF balances (up to $20,000 from your Ordinary Account), earns an extra 1% interest per year. For members aged 55 and above, an additional extra interest of 1% per year will be given on the first $30,000 of your CPF balances to enhance your retirement savings. This is on top of the existing 1% extra interest on the first $60,000 of combined CPF balances.


Information accurate as at 5 May 2017.

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