For those who have just started working in Singapore, you would have realised that a portion of your monthly salary automatically goes into the Central Provident Fund (CPF). This compulsory savings scheme helps you build up funds for retirement, housing and healthcare.
But have you ever wondered how much you’ll receive from CPF Life when you retire?
Are the monthly payouts enough for your golden years?
And is CPF Life truly for life?
Here’s everything you need to know about the CPF Life Scheme in Singapore, from eligibility and plans to payout calculations and how to increase your CPF retirement income.
What is CPF Life?
CPF Life (Lifelong Income for the Elderly) is a national annuity scheme that provides monthly payouts for life from your CPF Retirement Account once you reach your payout eligibility age.
All Singapore Citizens and Permanent Residents (PRs) who meet the requirements are automatically included. Your CPF Life payouts depend on how much you’ve saved in your Retirement Account by age 55 and the CPF Life plan you choose.
CPF Life replaced the older Retirement Sum Scheme (RSS), offering lifelong payouts instead of stopping when your savings run out. This change reflects Singapore’s longer life expectancy and ensures retirees have financial stability for life.
Retirement Sum Scheme vs CPF Life
Before we dive into CPF Life plans, here’s a side-by-side look at how the Retirement Sum Scheme compares to CPF Life:
| Retirement Sum Scheme | CPF Life | |
| Withdrawal age | 65 | |
| Amount of monthly payouts | Amount of monthly payouts depends on how much you have in the Retirement Account | |
| Interest rate returns | Interest paid into accounts | Interest paid into Lifelong Income Fund |
| Lifelong payouts | No | Yes |
The Retirement Sum Scheme still applies to members who began withdrawals before CPF Life was introduced in 2009. If you’re born before 1958 and haven’t started withdrawals, you can choose to remain on RSS or switch to CPF Life.
Am I eligible for CPF Life?
You’ll be automatically included in CPF Life if:
- You’re a Singapore Citizen or PR born in 1958 or after, and
- You have at least $60,000 in your Retirement Account six months before reaching your payout eligibility age (PEA).
If you’re self-employed and don’t contribute regularly to CPF, you might not be automatically included. However, you can still opt in voluntarily to secure lifelong monthly payouts.
Pro tip: If you’re 58 this year and self-employed, you can top up your Retirement Account to meet the eligibility criteria and enjoy CPF Life payouts.
Read more: Retirement Planning for Self-Employed People in Singapore
CPF Life Plans: Basic, Standard or Escalating, which should you choose?
Once you’re enrolled in CPF Life, you may choose your preferred plan anytime between age 65 and 70. Members who don’t make a choice by age 70 are automatically placed on the CPF LIFE Standard Plan (the default).
Here’s a quick guide to help you decide:
Source: CPF Board
| CPF Life Basic Plan | CPF Life Standard Plan | CPF Life Escalating Plan | |
| Plan description | Gives you lower monthly payouts. As a result, you will have more savings for your beneficiaries. | Default plan | Lower initial payouts. The payouts increased by 2% yearly to cope with inflation. |
| Who should choose it | If you’d want to leave more money to your loved ones | If you’d like a more comfortable retirement for yourself | To cope with a future increase in price |
| Payouts upon death | Any unused annuity premium (without interest) and Retirement Account savings, will be paid to your beneficiaries upon your death | ||
Each CPF Life plan offers different payout levels and benefits:
- The Basic Plan suits those who wish to leave more savings to their loved ones.
- The Standard Plan is ideal if you prefer higher payouts for a more comfortable retirement.
- The Escalating Plan helps you cope with inflation by increasing payouts by 2% yearly.
CPF Life payouts and retirement sums (BRS, FRS, ERS)
Your monthly CPF Life payout also depends on how much you’ve saved in your Retirement Account by age 55. This is determined by whether you’ve met the Basic Retirement Sum (BRS), Full Retirement Sum (FRS) or Enhanced Retirement Sum (ERS).
| CPF Life tier | |||
| Year of your 55th birthday | Basic Retirement Sum (Minimum) | Full Retirement Sum (Minimum) | Enhanced Retirement Sum (Minimum) |
| 2020 | S$90,500 | S$181,000 | S$271,500 |
| 2021 | S$93,000 | S$186,000 | S$279,000 |
| 2022 | S$96,000 | S$192,000 | S$288,000 |
In short:
- The Basic Retirement Sum (BRS) provides a modest monthly payout, suitable if leaving more to your family.
- The Full Retirement Sum (FRS) ensures a more comfortable retirement.
- The Enhanced Retirement Sum (ERS) offers the highest payouts.
The retirement sums increase by about 2% each year to account for inflation, so future payout levels may adjust accordingly.
If you’ve hit your FRS, you can withdraw the excess savings above the required amount.
Read more: Can You Retire on CPF LIFE Payouts Alone?
How much will I get from CPF Life?
Most Singaporeans are enrolled in the CPF Life Standard Plan, which serves as the default. Depending on whether you’ve met your BRS, FRS, or ERS, here’s how much you can expect to receive:
| Retirement Account savings at 55 | Monthly payouts for life from age 65 | ||
| Standard Plan (Default) | Escalating Plan | Basic Plan | |
| Basic Retirement Sum (BRS) S$90,500 | S$750 to $810 | S$580 to S$640 (initial amount) Payouts increase by 2% every year | S$710 to S$740 |
| Full Retirement Sum (FRS) S$181,000 | S$1,390 to S$1,490 | S$1,070 to S$1,180 (initial amount) Payouts increase by 2% every year | S$1,310 to S$1,360 |
| Enhanced Retirement Sum (ERS) S$271,500 | S$2,030 to S$2,180 | S$1,560 to S$1,720 (initial amount) Payouts increase by 2% every year | S$1,920 to S$1,980 |
Note: These figures are estimates, your actual payout will depend on your CPF balance and chosen plan. For personalised calculations, use the CPF Life Estimator.
How do I increase my CPF Life payouts?
If you’re concerned your CPF Life payouts may not be enough, there are several ways to boost your retirement income:
- Top up your Retirement Account (RA) with cash or CPF transfers to reach a higher retirement sum (FRS or ERS).
- Delay your payout start age. Payouts increase the later you begin (up to age 70).
- Continue working and contributing to CPF. Extra contributions grow your RA savings.
- Use government schemes such as the CPF Retirement Sum Topping-Up (RSTU).
- Plan early for retirement using tools like the Planner Bee’s retirement calculator or CPF Life Estimator.
Example: If you top up $10,000 to your RA at age 55, your monthly payout could increase by around $80.
By planning early and topping up, you can enjoy higher CPF Life payouts and a worry-free retirement!
Final thoughts
CPF Life provides a reliable foundation of lifelong monthly payouts for Singaporeans, helping you plan a secure and comfortable retirement. By understanding your CPF Life plan options, keeping track of your retirement sum, and making CPF top-ups where possible, you can increase your payouts and enjoy greater financial peace of mind.
Read more: Retirement Cheat Sheet: CPF SA Shielding To Maximise Your CPF Account
