The CPF LIFE Basic Plan provides payouts that will get progressively lower. It is suitable if you do not mind lowering your lifestyle as prices increase over time. Consider the
Escalating or
Standard Plans if you want to generally maintain your desired lifestyle or receive higher-level payouts.
Premium
- New CPF LIFE members: When you join CPF LIFE, about 10% to 20% of your Retirement Account (RA) savings will be used as your CPF LIFE premium.
- Existing CPF LIFE members: When you receive additional inflows into your RA after starting payouts, it will automatically increase your CPF LIFE premium if the revised monthly payouts increase by at least $10.
Generally, the proportion of RA savings deducted for CPF LIFE increases with age. We will notify you of the exact RA savings deducted and your revised monthly payouts.
Your CPF LIFE premium will continue to earn the CPF interest rates, which are factored into your monthly payouts. This allows you to receive higher payouts from the start, compared to if there were no interest earned.
Monthly Payouts
Your monthly payouts are calculated based on various
factors and will be paid to you for as long as you live.
CPF LIFE works by risk-pooling, like other forms of insurance. The pooling of interest earned on the CPF LIFE premiums enables members to receive lifelong payouts.
For the CPF LIFE Basic Plan, your CPF LIFE monthly payouts will first be paid from your RA savings until age 90. Thereafter, you will receive the monthly payout from your CPF LIFE premium.
Your RA savings that are first used for your monthly payouts will continue to earn 4% interest, with an
extra interest of up to 2% earned on the first $60,000 of your CPF balances (across all your CPF accounts). This interest is paid to your RA and included in your monthly payouts. As your RA savings are gradually withdrawn to provide you with monthly payouts, the extra interest you earn will decrease when the total balances fall below $60,000. Your monthly payout will then get progressively lower as the extra interest earned decreases over time.
Premium Balance
