I know that CPF LIFE Basic Plan is a legacy option. But why did Government introduce Basic Plan previously? Can I change to another plan?
When the CPF LIFE Basic Plan was first introduced in 2009, it was better than the previous default monthly payout scheme which did not provide payouts for life. However, to better suit Singaporeans’ evolving needs, we have since introduced Standard and Escalating plans.
The Basic Plan is retained as a legacy plan. Monthly payouts under the Basic Plan start lower than Standard Plan and will get progressively lower when your combined CPF balances eventually fall below $60,000.
If you are on the Basic Plan or other legacy plans such as the Balanced, Plus and Income plans, you can consider changing to the Escalating Plan to benefit from increasing payouts or the Standard Plan to enjoy higher and level payouts. You can make the change anytime.
It is important to note that:
- Once you have changed to the Standard or Escalating Plan, you cannot change back to a legacy plan.
- All your Retirement Account savings, including the premium refunded from your Basic Plan, will be deducted as CPF LIFE premium when the Standard or Escalating Plan is issued to you.
