09 Nov 2020 

SOURCE: CPF Board

On track to a sunny retirement, but wondering what else you can do to ensure that nothing derails your plan? Here's how your CPF has been supporting your retirement from the get-go, and how you can tap on it to fortify your retirement foundation.

1. Grows your retirement savings breezily ​

#DidYouKnow that from the moment you start earning an income, your CPF savings have been growing steadily for your future retirement needs? 

Every month, you and your employer make contributions to your CPF accounts. Part of these contributions will be allocated to your Special Account (SA) for your retirement needs.

Your CPF savings then grows with attractive interest rates of up to 5% p.a. (if you are below age 55), and 6% p.a. (if you are aged 55 and above)¹!

To further leverage these interest rates and save more for your retirement, you can make cash top-ups to your Special Account (SA) or Retirement Account (RA)², or make CPF transfers from your Ordinary Account (OA) to your SA³​ or RA!

Learn more about ways to make your CPF work harder for you.

2. Peps up your retirement income

Your CPF savings will accumulate over the years as you continue to work. When you turn 55, your RA will be created. The savings from your SA and/or OA, up to the Full Retirement Sum, will be transferred to your RA to form your retirement sum. 

Under CPF LIFE, your RA savings will provide you with a steady stream of retirement payouts from age 65, for as long as you live! This means that the more savings you set aside in your RA, the higher your monthly CPF LIFE payouts will be. 

Besides topping up your SA or RA to fortify your retirement savings, you can also boost your monthly payouts by choosing to start them later than age 65⁴​, if you are still working or have other sources of income. For each year that you defer, your monthly CPF LIFE payouts will increase by up to 7%! 

3. Provides options to better suit your needs in retirement

There are three CPF LIFE plans available, all of which will give you monthly payouts for as long as you live. Consider the kind of retirement payout you would need and pick the option that best suits your needs!

If you are worried about things becoming more expensive as the years pass, then you need a retirement income that increases every year. The Escalating Plan has this feature.

If you prefer to keep within a fixed budget even if it means that you can afford to buy less as prices rise every year, the Standard Plan offers a level payout.

If you do not mind starting with lower monthly payouts that will be progressively lower later on, then the Basic Plan is good enough!

Learn more about the 3 CPF LIFE plans.

Now that you have a clearer view of how CPF supports you in your journey towards a sunny retirement, it’s time to think about how you want to best maximise it!

¹ Includes extra interest. Members who are below 55 years old are paid an extra interest of 1% per annum on the first $60,000 of their combined balances. Members who are 55 years old and above are paid an extra interest of 2% per annum on the first $30,000 and 1% per annum on the next $30,000 of their combined balances. Terms and conditions apply.​​

² Members below age 55 can top up their SA, up to the current Full Retirement Sum (FRS). For members aged 55 and above, top-ups can be made to their RA, up to the current Enhanced Retirement Sum (ERS).

³ Applicable only to those below age 55 and up to the current FRS only. Members aged 55 and above can transfer their SA and/or OA savings to their RA, up to the current ERS. 

⁴ Members can choose to start their CPF LIFE payouts anytime between age 65 to 70. 

Information accurate as at 18​/11/2020