14 Aug 2025
SOURCE: CPF Board
A fulfilling retirement is a desirable goal after years of working hard. You can enjoy the fruits of your labour from your CPF savings starting from age 65, which is your CPF payout eligibility age. Let’s take a look at what this milestone entails, and how you can make the most of it.
While your CPF payout eligibility age is 65, you have the option of starting your CPF LIFE payouts anytime between the ages of 65 to 70.
Deferring your payouts isn't simply about starting them later. For each year that you defer, your payouts will increase by up to 7%. If you are still working or have other income streams and do not need the funds yet when you turn 65, deferring is one way to increase your monthly CPF LIFE payouts. Your payouts increase by up to 35% if you choose to start payouts at 70 years old.
At age 70, your CPF LIFE payouts will automatically start and you will be on the CPF LIFE Standard Plan, if you have not instructed CPF Board regarding your CPF LIFE plan by then.
CPF Lifelong Income for the Elderly (CPF LIFE) is a national longevity insurance annuity scheme that provides you with monthly payouts no matter how long you live, so you never have to worry.
There are three CPF LIFE plans to choose from to support your preferred retirement lifestyle:
The Escalating Plan, as its name suggests, provides growing payouts over time. The monthly payouts start lower initially but grow by 2% a year for life, allowing you to maintain your lifestyle even as prices rise.
The Standard Plan offers a steady monthly payout. If you prefer to keep within a fixed budget despite increasing prices, this plan is a good fit. But bear in mind that as payouts do not grow to protect you against inflation, you have to be prepared to lower your lifestyle as things get more expensive over time.
The Basic Plan is meant for those who can lower their lifestyle to buy even lesser over time. Under this plan, the monthly payouts of fall when your CPF balances go below $60,000.
It bears mentioning that regardless of which plan you choose, they will all provide you with monthly payouts no matter how long you live. As life expectancies increase, this provides the assurance that you will never run out of savings. When you pass away, your unused CPF LIFE premium balance, together with any remaining CPF savings, will be distributed to your loved ones.
Besides deferring your CPF LIFE payouts, you can also make cash top-ups to your Special Account (SA) or Retirement Account (RA) to give your savings a boost.
In addition to increasing one’s CPF savings and benefitting from CPF stable interest rates, other benefits of topping up include enjoying tax relief of up to $16,000, for cash top-ups made to yourself and your loved ones in each calendar year. If you need a helping hand, your loved ones can also make top-ups to your accounts, allowing them to help you build your savings while enjoying some tax relief.
The Matched Retirement Savings Scheme (MRSS) helps seniors with lower CPF savings grow their savings with matching grants for cash top-ups made to their RA. Eligible seniors can receive a matching grant of up to $2,000 per year, with a lifetime limit of $20,000.
If you’d like to make a cash top-up or CPF transfer, you can use the Cash top-ups and CPF transfers for retirement e-form to perform the transaction. Do note that these top-ups and transfers are irreversible.
Knowing the CPF LIFE payout age and the options to increase your monthly CPF LIFE payouts can help you make better use of the resources available to chart your path towards your desired retirement lifestyle. Take the time to plan and work towards your ideal retirement today!
The information provided in this article is accurate as of the date of publication.
