CPF
What is CPF LIFE?
Singapore’s national annuity scheme. Using the savings in your Retirement Account, it pays you a monthly income for as long as you live, with payouts starting any time between ages 65 and 70. There are three plans — Standard, Basic and Escalating.
How the payouts work
At 65 (you may defer to as late as 70), part of your Retirement Account is used as a one-time premium for CPF LIFE, which then pays you a fixed monthly income for the rest of your life — so you can never outlive your savings. Each year you defer the start raises your eventual payout by roughly 7%, a meaningful boost if you can afford to wait.
The three plans
Standard pays a higher, level monthly amount but leaves a smaller bequest to your beneficiaries. Basic pays a little less while keeping more in your account as a potential bequest. Escalating starts at a lower amount that then rises 2% every year to help your income keep pace with inflation. The right choice depends on whether you value higher income now, a larger legacy, or protection against rising prices.