CPF Life Flashcards
CPF Life
CPF Lifelong Income For the Elderly
Provides Singaporean amd PR with a monthly payout for as long as they live
Why do we need CPF life?
CPF LIFE can help you achieve peace of mind during your retirement. It is a life annuity, which means that you will receive a regular stream of income for as long as you live. You can therefore enjoy your retirement without the worry of outliving your savings.
Will I lose all my money if I pass away early?
When you pass away, we will refund any remaining Retirement Account savings along with all your unused CPF LIFE annuity premiums. This means that you and your loved ones will always get back at least the amount that you have put into CPF LIFE, in the form of payouts and/or bequest, no matter what age you live to.
What must I do to be included in CPF LIFE?
You will automatically be included in CPF LIFE to enjoy lifelong payouts if:
you are a Singapore Citizen or Permanent Resident born in 1958 or after ; and
have at least $60,000 in your Retirement Account six months before you reach your payout eligibility age (PEA) .
Otherwise, you can still apply to join CPF LIFE and start receiving lifelong income, at any time between your payout eligibility age and one month before you turn 80 years old.
What are the CPF LIFE Plans Available?
Standard Plan (default) - higher level of monthly payouts
Escalating Plan - monthly payouts that start lower but increases 2% yearly
Basic Plan - lower monthly payouts (to leave more for your loved ones)
When do I need to choose my CPF Life Plan?
You will only need to choose your CPF LIFE plan when you wish to start receiving your CPF LIFE monthly payouts (between payout eligibility age to 70).
We will write to you six months before your payout eligibility age to further explain the options you have and the choices you have to make.
How to increase CPF LIFE monthly payout?
If you would like to receive higher payouts, you or your loved ones can make cash top-ups or CPF transfers (or both) into your Retirement Account. You may top up your Retirement Account to the prevailing Enhanced Retirement Sum
You also have the option to start your CPF LIFE payouts later, up to age 70. Doing so enables your CPF savings to accumulate interest, and this will boost your future retirement income. This is an option to consider, especially if you are still working or have other sources of income. Your CPF LIFE monthly payouts will increase by up to 7% for each year that you defer receiving your payouts.
How do I receive my monthly payout?
The monthly payouts from CPF LIFE will be paid directly into your bank account through Inter-Bank GIRO (IBG) by the 4th working day of each month.
If the IBG is unsuccessful because you have closed your bank account, the CPF LIFE payouts will be paid into your CPF Ordinary Account.
