CPF LIFE explained

When you turn 65, CPF LIFE kicks in to give you a monthly payout for the rest of your life. Yes, you heard it right — for as long as you live, even if your own CPF savings are depleted. It’s one of the best safety nets you’ve got for retirement in Singapore.

What is CPF LIFE?

CPF LIFE (Lifelong Income For the Elderly) is a national annuity scheme that protects you from running out of funds for life’s essentials in your golden years. You join it automatically when you turn 65, so long as you have enough CPF savings. The money in your Retirement Account (RA) gets used as the premiums for a CPF LIFE plan, which then gives you monthly payouts for life to hedge longevity risk.

Which CPF LIFE plan should you choose?

You’ll choose a CPF LIFE plan when you’re ready to start your monthly payouts, usually at age 65, though you can defer the start of payouts until age 70. There are three plans:

How much will you get?

• How much you’ve saved in your RA
• The CPF LIFE plan you choose
• Your gender (women generally live longer, so payouts are adjusted)

Example: If you’ve got $213,000 (the Full Retirement Sum in 2025) in your RA at age 55, that grows to $319,000 through earned interest by the time you’re 65. If you choose to start your payouts at 65, you will get $1,610 - $1,730 in payouts per month under the Standard Plan. Every year you defer the start of your payouts (until the age of 70), your monthly payouts increase by approximately 7%, because your RA savings will continue growing with compound interest. So, if you start your payouts at the age of 70, you will get $2,130 - $2,310 per month under the Standard Plan.

Is CPF LIFE enough on its own?

CPF LIFE is meant for essentials like food, bills, and transport. But for travel, hobbies, or luxury healthcare, you’ll likely need additional income sources.

That’s why building extra savings, investments, or side income is still important. While CPF LIFE sets the foundation of your retirement, it might not cover the kind of lifestyle you want in retirement.

That said, it is possible to maximise your CPF savings to cover more than just essentials. Since 2016, the Enhanced Retirement Sum Scheme has enabled us to save more in our CPF accounts while taking advantage of CPF’s higher, stable interest rates of up to 6%, potentially boosting monthly payouts to around $3,300+ depending on your chosen plan and payout start date. While CPF provides a strong foundation, topping it up with your own savings or investments gives you more freedom to enjoy the retirement lifestyle you want.