How Much Will I Receive For In Monthly CPF Life Payouts When I Retire?

Rachel Yeo

Recently, my mother has been a huge worrywart.

On top of the underlying current of anxiety due to the COVID-19 virus, my mum’s latest worry involves her getting a job.

Source: Giphy

You see, she has been out of the workforce for close to 5 years. At the age of 60,  coupled with a 20-year employment history of working in a family-ran business, she is not in an ideal position to re-enter the workforce.

Yet, instead of enjoying her retirement, she worries that her savings aren’t enough to tide her through retirement.

She is also unsure of what the CPF scheme entails and has obviously never heard of CPF LIFE.

So I took it on myself to find out what CPF LIFE is about, and how much exactly, will we be getting in monthly payouts when we hit 65. Hopefully, it’ll give my mother a peace of mind. haha.

TL;DR: How Much Will I Receive In Monthly CPF Payouts When I Retire?

If you are enrolled in the CPF LIFE Standard Plan, here’s a quick breakdown of how much you may get, depending on your amount and what age you choose to start receiving payouts.

Retirement Sum At 55 Starting Payouts At 65 Starting Payouts At 68 Starting Payouts At 70
$85,500 $700$830$940
$120,000 $940$1,140
$171,000$1,300$1,540 $1,730
$256,500 $1,910$2,250$2,520

Note: Calculations are based on the retirement sums for 2021, and assuming.

What is CPF LIFE?

Source: tenor

Just a quick introduction, CPF LIFE is a life annuity scheme that provides a monthly payout from retirement age for as long as you live for all Singaporeans and Singapore Permanent Residents (PR).

Basically, CPF LIFE provides you with your monthly retirement income from your CPF.

Fun fact: Something I never knew either, the ‘Life’ in CPF LIFE stands for Lifelong Income For the Elderly.

When you hit the age of 65, you will be able to choose the different types of payouts you can receive monthly, from the CPF Board.

HUH? I Can Choose My Payouts?

Yes, you can! In fact, you can choose from 3 different payout plans based on your needs. To put it simply, here’s a breakdown on the CPF Life Basic, Standard, and Escalating Plans:

 CPF Life Basic Plan CPF LIFE Standard Plan CPF LIFE Escalating Plan
What Is It? Gives you lower monthly payouts.

This means:
More savings for your beneficiaries. (Remember to do your CPF Nomination!)
Default plan for everyone. Lower initial payouts. The payouts increases by 2% yearly to cope with inflation.
Best For...If you'd want to leave some $ for your loved ones. YourselfFor future needs.
Upon DeathAny unused annuity premium (without interest) and Retirement Account savings, will be paid to your beneficiaries upon your death

If you’re still confused, here’s an illustration done up by CPF!

Source: CPF

When Do I Need To Choose My Plan?

You can choose your preferred LIFE plan to receive your monthly payouts anytime between age 65 and 70. Members who don’t choose their LIFE plan by age 70 will automatically be placed on the default plan — the CPF LIFE Standard Plan.

How Much Will I Be Getting For My CPF Monthly Payouts?

Source: tenor

If you are enrolled in the CPF LIFE Standard Plan, here’s how much you will be getting based on how much you have in your CPF at age 55!

Retirement Sum At 55 Starting Payouts At 65 Starting Payouts At 68 Starting Payouts At 70
$85,500 $700$830$940
$120,000 $940$1,140
$171,000$1,300$1,540 $1,730
$256,500 $1,910$2,250$2,520

Of course, not everyone will opt for the CPF LIFE Standard Plan. If you are looking to calculate your monthly payouts according to the Escalating or Basic plan as well, here’s an overview of how much you will be getting in lifetime payouts:

​Retirement Account Savings at 55
Your monthly payout for life from 65 onwards​
​Standard Plan (Default)Escalating Plan Basic Plan
Basic Retirement Sum (BRS): $93,000$770$600 - $1,080
(initial amount)
Payouts increase by 2% every year ​
$680 - $730
​Full Retirement Sum (FRS): $186,000$1,420$1,180 - $2,000​
(initial amount)
Payouts increase by 2% every year ​
$1,320 - $1,350
​Enhanced Retirement Sum (ERS): $279,000$2,080$1,600 - $2,910
(initial amount)
Payouts increase by 2% every year
$1,950 - $1,960​

These amounts are calculated based on the assumption that you have a CPF LIFE Policy and are born on, or before 1978. For those born before 1978, you can calculate your estimated payouts using the CPF LIFE Estimator.

How Much Do I Need To Save To Get My Desired Monthly Payout?

If you’re wondering how much you need to receive your desired monthly payout…

Here’s the amount of savings you need at different ages:

Desired Monthly Payout From 65Savings you need at 55Savings you need at 60Savings you need at 65
$350 - $370$35,500$45,800$60,000
$540 - $570$60,000$76,000$97,300
$770 - $830$93,000$115,400$145,200
$960 - $1,030$120,000$147,600$184,400
$1,430 - $1,530$186,000$226,300$280,200
$1,520 - $1,640$200,000$243,000$300,600
$2,080 - $2,230$279,000$337,300$415,300

How Can I Increase My CPF Payouts?

Source: tenor

If you think that these amounts are not enough for you to tide through retirement, you can make cash top-ups or CPF transfers (or both) into your Retirement Account!

With proper planning, you can also depend on your investment payouts and dividends to further supplement your retirement income.

How Will I Get My $$$?

Monthly payouts will be paid directly into your bank account via Inter-Bank GIRO by the 4th working day of each month.

If the GIRO transfer isn’t successful because you closed your bank account, the money will be paid into your CPF OA for withdrawal.

About Rachel Yeo
Breaking down complicated financial pieces into idiot-proof articles.
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