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How does the CPF LIFE Escalating Plan work?

The CPF LIFE Escalating Plan is a suitable option if you want to protect your retirement income from rising prices. Under this plan you'll receive payouts that increase by 2% each year. Although the payouts start lower, they will eventually become higher than the Standard Plan and Basic Plan payouts. The Escalating Plan gives you peace of mind knowing that you can generally maintain your standard of living even as the cost of living goes up during your retirement years.

For example, if you start with a monthly payout of $1,000 when you turn 65, it will increase by 2% each year and reach around $1,500 when you are 85. The 2% increase takes place every year in the same month that you receive your first payout.

Under this plan, all your Retirement Account savings will be deducted as CPF LIFE premium when you join CPF LIFE, which can be anytime from 65 to 70.

Your CPF LIFE monthly payouts will first be paid from your CPF LIFE premium. When your CPF LIFE premium is depleted, you will continue to receive the monthly payouts from the interest that you and other CPF LIFE members have accumulated, no matter how long you live.