CPF Life

A new retirement scheme provided by the government as an alternative, and improvement, to the Minimum Sum Scheme (MSS) which only lasts for around 20 years.

CPF Life, as opposed to MSS, gives retirees monthly payout FOR LIFE. That means from Draw Down Age (DDA), which varies depending on year of birth, retirees will be receiving monthly "pension" until they die.

The amount of pay out will depend on the amount in the Retirement Account (RA) and also the choice of CPF Life Plans.

Eligibility for sign up is from 55 years of age, with savings on the Retirement Account. For those born after 1958, it is on automatic inclusion.

There are 4 plans to choose from (my personal comments in bold blue italics):

1. LIFE BALANCED PLAN

• balanced level of payout with some bequest for beneficiaries
• default plan for those born after 1957 and have at least $40,000 in their RA at age 55, and do not choose a plan

I think this is good for those who have ample amount for retirement but want to leave some amount to their children/beneficiaries when they die.

2. LIFE BASIC PLAN

• lowest monthly payout, highest bequest for beneficiaries

3. LIFE PLUS PLAN

• higher monthly payout, less bequest for beneficiaries

4. LIFE INCOME PLAN

• highest monthly payout, no bequest for beneficiaries

The summary of benefits is shown on this table:

• Upon signing up for CPF Life, all the amount in the RA account will be used to join to scheme.
• For higher payouts during retirement, RA can be topped up to maximum amount equal to prevailing minimum sum (currently $117,000)
• No minimum amount in the RA is needed. But since the monthly payouts will depend on the amount in the RA, lower RA balances would me lower monthly payouts.
• From DDA, monthly payouts will be credited to retirees bank accounts thru GIRO on the 7th working day of each month.
• Monthly payouts may be adjusted every year to take into account factors such as CPF interest rates and mortality experience. Changes are usually too small, so payouts are considered stable.
• Once a CPF Life Plan has been chosen and you have already joined the scheme, you CANNOT make any more changes to it. 

For more info:

visit CPF Life

call CPF Life Hotline: 1800 CPF LIFE (1800 5433 273)

email: cpf-life@cpf.gov.sg