CPF for Retirement

Source: Retirement Savings and Withdrawals

CPF is for your retirement

• can be withdrawn upon turning 55, provided the Minimum Sum has been set aside
• You can also withdraw your CPF savings if you leave Singapore and West Malaysia permanently or become permanently incapacitated.
• Members may participate in CPF LIFE or buy approved life annuities with their Minimum Sum to give them a guaranteed income for life. 
• Alternatively, they may place their savings with approved banks or continue to keep it with the CPF Board. 
• The Minimum Sum left with the CPF Board currently earns 4% interest per annum. The interest rate is revised every quarter.

CPF Minimum Sum Scheme 

• was set at $80,000 in 2003 and will be gradually increased until it reaches $120,000 (in 2003 dollars) in 2013
• provides members with a monthly income to support a modest standard of living during retirement
• Setting aside the Minimum Sum when you reach 55 ensures that you have some regular income from the current draw-down age to live on in your retirement

• Members may participate in CPF LIFE or buy approved life annuities with their Minimum Sum to give them a guaranteed income for life. 
• Alternatively, they may place their savings with approved banks or continue to keep it with the CPF Board. The Minimum Sum left with the CPF Board currently earns 4% interest per annum.
• If you had bought a life annuity, you will receive the monthly income for life. 
• If you leave your CPF Minimum Sum with a participating bank or with CPF Board, you will receive the monthly income until your CPF Minimum Sum is exhausted.
• If you meet the CPF Minimum Sum, you will need to set aside a Medisave Required Amount when you withdraw your CPF. If you have less than the Medisave Required Amount, you can use your Special and/or Ordinary Accounts, in excess of the CPF Minimum Sum to set aside the Medisave Required Amount. This includes the first withdrawal upon reaching 55 and all subsequent withdrawals.
• The Medisave Required Amount is set at $22,500 from 1 January 2010 and will increase by $2,500 (to be adjusted for inflation) each year until it reaches $25,000 (in 2003 dollars) on 1 January 2013.

CPF Life

• introduced from September 2009
• members can enjoy monthly income for life
• CPF members turning age 55 from 2013, with at least $40,000 in their Retirement Account, will be automatically enrolled into CPF LIFE. Members who have less than $40,000 can opt-in, if they wish to do so.
• CPF Life Calculator - so you have an idea of how much monthly income you will have during retirement
• 4 plans available:

1. Life Balanced Plan - balanced level of payout with some bequest for beneficiaries
2. Life Basic Plan  - lowest monthly payout, highest bequest for beneficiaries
3. Life Plus Plan - higher monthly payout, low bequest for beneficiaries
4. Life Income Plan - highest monthly payout, no bequest