Detailed notes for Retirement Payout Planner

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General

By accessing the CPF Board website, you acknowledge the following Terms of Use, including this Disclaimer.

The results and/or estimates provided by the planner are intended to be used for illustrative purposes only, and should not be regarded as advice by CPF Board or used as a substitute for financial advice. These results and/or estimates are also based on various assumptions which are subject to change at any time without notice.

Please note that CPF transactions (e.g. Top-ups, Transfers) are irreversible. As with any financial decision, carefully consider your financial situation and needs before taking action.


 

Introduction (Only available for members 6 months away from 55th birthday or older)

 

If you are below age 55, your CPF account balances and withdrawable savings after age 55 are only projected estimates. Projections are based on application of Retirement Account creation rules to your current balances, and do not factor in future contributions or interest earned.


Setting Retirement Income Goal

The initial retirement income goal selected by you is expressed in today’s dollars.

A 2% inflation rate is applied to the initial retirement income goal to compute your payout goal at age 65.

Based on the assumption that the full savings amount can be committed to CPF LIFE, your savings goal at age 65 is computed by deriving the amount of annuitised savings needed to achieve your payout goal with your selected desired retirement lifestyle at age 65.

In the retirement income guide, choices provided are based on expenditure items from the Household Expenditure Survey.
 

Projections

Projections are based on salary-related details you provided. These details will be stored for future projections, and will remain unchanged until you edit them through the planner. If you do not provide current and accurate information, the projections may not be suitable for your use.

Projections will start from the current month, and end when you are projected to reach age 65.

Projections assume you remain employed throughout the projection period.

If you are:
 

         i.            More than 6 months away from your 55th birthday – Your projected retirement savings and payouts at age 65 are only based on your current Special Account balances. As part of our projections, your Retirement Account is created from Special Account balances only when you are projected to reach age 55.
 

       ii.            6 months away from your 55th birthday, up to your 55th birthday – Your projected retirement savings and payouts at age 65 are based on your current Ordinary Account and Special Account balances. As part of our projections, your Retirement Account is created from Ordinary Account and Special Account balances when you are projected to reach age 55.
 

     iii.            Age 55 or older – Your projected retirement savings and payouts at age 65 are based on your current Retirement Account balances.


Contribution rates are based on those for private sector employees and government non-pensionable employees.

Contributions on monthly salary are capped at the monthly salary ceiling.

Contributions on additional salary (e.g. bonus) are paid once a year every December, and are capped at the Additional Wage Ceiling, based on the assumption that you only have one employer.

Annual increments are assumed to be constant over the projection period, and applied at the end of every December.

To be conservative, projections assume that the Special Account and Retirement Account balances earn the current interest rate floor of 4% per annum. The first $60,000 of balances earn an extra 1% per annum interest. After age 55, the first $30,000 of balances earn an additional extra 1% per annum interest.

CPF interest is calculated monthly, but credited and compounded annually at the end of December.

Projected payouts are based on the assumption that all projected savings can be committed to CPF LIFE.
 

Simulating Top-ups or Transfers

Simulations of top-ups or transfers are subject to CPF top-up limits. To project top-up limits, a 3.5% growth rate is applied to the prevailing Full Retirement Sum and prevailing Enhanced Retirement Sum.

Top-ups and transfers simulated will take effect one month after the projections begin.

Simulating a recurring top-up will take the place of any existing recurring top-up you have. Simulated recurring top-ups will continue until you are projected to reach age 65.


Simulating Reservation of Ordinary Account savings

 

As part of our simulations, reserved Ordinary Account savings will be retained in the Ordinary Account and will not be used to simulate the creation of your Retirement Account at age 55. As such, reserved Ordinary Account savings will not be factored into your projected retirement savings and payouts at age 65.


Simulating Withdrawals

Simulated withdrawals only cover withdrawals for immediate needs from your Ordinary Account and Special Account savings. As part of the simulation, savings will be withdrawn from your Special Account, followed by Ordinary Account.

 

Special Account closure

 

Projections and simulations in the planner currently do not factor in the closure of Special Account for members age 55 and above from early 2025. This will be addressed in a future update.