4 CPF enhancements you should know about

More options to save and greater flexibility for your retirement plans?

Yes, please! With recent recommendations made by the CPF Advisory Panel, Singaporeans can now look forward to higher monthly payout options and more. Here are 4 CPF enhancements to help you better meet your retirement needs.



Who should take note:

If you are reaching age 65 and are concerned about rising cost of living in retirement.

What is it:

In addition to the two CPF LIFE plans for you to choose from, the new CPF LIFE plan with escalating payouts helps you cope with rising costs of living in your golden years.

How it works:

This option starts with lower initial monthly payouts that increase at 2% per year over time. The CPF Board is working towards implementing this option and more details will be announced in due course.


Who should take note:

If you have a long investment runway, are prepared to accept some risk for higher expected returns for your CPF savings but lack the financial expertise and/or time and resources to actively manage your investments

What is it:

The Lifetime Retirement Investment Scheme (LRIS) will offer CPF members access to a low-fee, passively managed investment choice that adopts a long-term investment approach and will be simpler for members to choose from.

How it works:

Your invested CPF savings will be pooled together with other members to achieve economies of scale.

More details will be shared in due course.

Who should take note:

If you turned 55 from 2013 onwards.

What is it:

You can now withdraw up to 20% of your Retirement Account savings at 65 years of age.

How it works:

When you reach your payout eligibility age, you can choose to withdraw up to 20% of your Retirement Account savings, inclusive of the $5,000 that you can withdraw from age 55. The remaining Retirement Account savings will be paid to you through monthly payouts.

If you make a withdrawal, your monthly payouts will be lower. Do carefully weigh your long-term retirement needs against your short-term needs.

Read more on the withdrawals from age 55.

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*Payout figures are computed assuming a male member (Andrew) with a D.O.B of 1 Jul 1960 joining Standard Plan. The payout range is computed based on a base interest of 3.75% to 4.25%.

Who should take note:

If you are approaching retirement or reaching payout eligibility age.

What is it:

3 new ways to get higher payouts for life have been introduced.

How it works:

1. Topping up your spouse’s CPF

If your spouse does not have much CPF savings, transferring part of your CPF savings to him or her can enable both of you to have a regular stream of income in retirement. Both of you can benefit from the extra interest on your CPF savings. You can do this at any age as long as you have set aside the Basic Retirement Sum for yourself.

2. Topping up your CPF savings up to the Enhanced Retirement Sum

If you are age 55 and above, you can now choose from a wider range of retirement sums, based on your desired payouts. The more you set aside at age 55, the higher your monthly payouts will be when you reach your payout eligibility age.

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3. Deferring your payouts

You can choose to start your CPF LIFE payouts later, up to age 70, to enjoy higher payouts. Starting from age 65, you can get up to 7% higher CPF LIFE monthly payouts for each year that your payout start age is deferred.

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