CPF LIFE: The Complete Guide to Payouts, Plans & Minimum Sums in 2024
cpf-life-payouts-minimum-sum
cpf-life-payouts-minimum-sum

Did you know Singapore is a “blue zone“? The term was coined by Dan Buettner, an American National Geographic Fellow and New York Times-bestselling author. It refers to places that have 10 times more centenarians (people that live to 100) compared to the USA. In fact, according to data from the World Bank, Singapore has one of the highest life expectancies at birth in the world.

Given these statistics, it’s natural to look forward to your golden years, right? Well, not exactly. If you’re in your 30s like I am, retiring in Singapore is the stuff of nightmares. With inflation, rising house prices and the fact that Singapore is the most expensive city in the world to live in, who knows how much even our “cheap” hawker food and kopi will be by then? What will life be like then, and how can we afford it?

This is why it’s really important for us to understand CPF LIFE, which is the default retirement plan for Singaporeans. In fact, it’s probably the only retirement plan for some people. (Having kids and hoping they’ll be filial to you doesn’t count.)

Let’s find out what CPF LIFE is all about, what you need to join the scheme, and what the payouts are like. Warning: It’s a long read.

Disclaimer: All information is from CPF’s website and correct at the time of publishing.

What is CPF LIFE? Understanding Payouts, Plans & Minimum Sums in 2024

    1. What is CPF LIFE? How is it different from CPF Minimum Sum?

    2. Who is eligible for CPF LIFE? How do you sign up?

    3. What’s the minimum sum required to join CPF LIFE?

    4. Hang on, what about the CPF Retirement Sum?

    5. How much CPF LIFE payouts will you get?

    6. Which CPF LIFE plan should you choose?

    7. What if you want higher CPF LIFE payouts?

    8. What happens to your CPF LIFE when you die?

    9. Is it possible to opt out of CPF LIFE?

    10. Can you supplement CPF LIFE with your own plan?

 

1. What is CPF LIFE? How is it different from CPF Minimum Sum?

CPF LIFE (Lifelong Income For the Elderly) is the current incarnation of the Central Provident Fund’s retirement scheme. Previously, the retirement scheme was called the CPF Minimum Sum Scheme, later renamed as the CPF Retirement Sum Scheme.

The old scheme is being phased out, so CPF LIFE will be the default scheme for most of us.

But in case you’re curious…

The older CPF Retirement Sum Scheme draws its payout from your CPF Retirement Account (RA), essentially treating it as a retirement fund. But this means your payouts will stop when your account balance dwindles to $0. Those on the CPF Retirement Sum Scheme will receive a minimum of $350 in monthly payouts, but these payouts will end by age 90.