There are three CPF LIFE plans available – Escalating Plan, Standard Plan and Basic Plan. Deciding the kind of retirement lifestyle you want is key to choosing the right CPF LIFE plan for you.
If you are worried about things being more expensive as the years pass, then you need a retirement income that increases every year, which the Escalating Plan provides. Under the Escalating Plan, monthly payouts increase by 2% every year, to help protect you against rising prices. For more details, please refer to How does the CPF LIFE Escalating Plan work?
If you are willing to cope with rising prices over the years by buying less and living a more modest lifestyle, the Standard Plan provides level payouts. Payouts start higher than the Escalating Plan if you join with the same CPF LIFE premium, but will remain the same for the rest of your life and will eventually be lower than the Escalating Plan payouts. For more details, please refer to How does the CPF LIFE Standard Plan work?
If you don’t mind starting with lower monthly payouts which will be progressively lower later on, then the Basic Plan is good enough. The Basic Plan is a legacy plan carried over from the time CPF LIFE was first introduced in 2009. Unlike the Standard Plan that gives higher and level monthly payouts, the payouts under the Basic Plan are lower and will get progressively lower when your combined CPF balances eventually fall below $60,000. For more details, please refer to How does the CPF LIFE Basic Plan work?
In all three plans, you will enjoy payouts no matter how long you live, your premiums will enjoy attractive and risk-free CPF interest rates, and any remaining CPF LIFE premium balance will be given to your beneficiaries, together with your remaining CPF savings upon death. In other words, you and your loved ones will always get back the premium that you have put into CPF LIFE.
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