Singaporeans are living longer, and it is important that you secure a retirement income that will last you for as long as you live. This retirement income should take into consideration your needs as well as the CPF savings you have accumulated during your working years.
The CPF LIFE scheme was introduced to provide Singaporeans with monthly payouts upon reaching 65 for as long as they live. There are two CPF LIFE Plans for you to choose from – the LIFE Standard Plan and the LIFE Basic Plan. The plans differ in terms of:
A new CPF LIFE plan with escalating payouts will be introduced soon. This third CPF LIFE plan helps you cope with the rising cost of living in your retirement years.
In this issue of Street Talk, we ask people nearing retirement for their thoughts on the CPF LIFE plan they would opt for.
There are bound to be uncertainties as we approach retirement but with CPF LIFE, it is indeed assuring that we will be receiving lifelong monthly payouts. I will opt in for the LIFE Standard Plan as I feel that it is good to have that extra cash from the payouts for any immediate needs.
Being self-employed, I contribute to CPF to supplement my retirement savings and have kept the rest in other investments. The CPF LIFE Basic Plan seems more suited to my needs as I would like to still be able to support my family above myself when I retire.
I like what the CPF Life plans offer and I’m thinking of applying to join one of the two plans. The LIFE Standard Plan makes more sense in my household as my children are all currently self-sufficient – I can receive higher monthly payouts and lower bequest for them in future.
The monthly payouts that I am currently receiving from CPF LIFE act as a supplement on top of my salary. I have chosen the LIFE Standard Plan as I prefer to get higher payouts for myself. Having an annuity scheme is important as it allows you to be independent throughout your retirement years and I am glad CPF offers this.
CPF LIFE’s monthly payouts allow me to better plan my finances month by month and I also get to enjoy the scheme’s benefits. I’ll opt in for the LIFE Basic Plan as I am able to continue to support my Mother and Sister after retirement.