CPF LIFE, Singapore’s annuity scheme providing a lifelong monthly payout, forms the base retirement income for many retirees in Singapore.
After contributing to your CPF accounts for about three decades, your Special Account and Ordinary Account balances are transferred to your Retirement Account at age 55 – in preparation for providing CPF LIFE payouts from age 65 onwards.
Today, the Full Retirement Sum (FRS) that you need to set aside in your Retirement Account is $181,000. This is estimated to provide a monthly income of between $1,390 and $1,490 on the default Standard Plan.
The CPF LIFE scheme offers some flexibility in that you can choose to save the Basic Retirement Sum (BRS) of $90,500 or up to the Enhanced Retirement Plan (ERS) of $271,500, or any amount in between, in your Retirement Account. Once you reach age 65, you can opt for the Standard Plan, or the Escalating Plan or Basic Plan.
A monthly income of $1,390 to $1,490 will provide for basic retirement expenses. To continue living at a higher standard without your monthly employment salary, you can consider topping up your CPF accounts via the Retirement Sum Topping Up (RSTU) scheme.