Retirement Sum Scheme Flashcards
What is a Retirement Sum?
This is the amount of retirement savings which you have chosen to set aside in your Retirement Account to receive monthly payouts from your payout eligibility age, which is currently at age 65.
Your retirement sum can be used to join CPF LIFE which provides you with life-long monthly payout or the Retirement Sum Scheme which provides you with a monthly payout until your Retirement Account balance is depleted.
How much is the Retirement Sum?
At age 55 and after, you can choose your desired future monthly payout to meet your retirement needs. The more you set aside in your Retirement Account (RA), the higher your future monthly payout.
Basic Retirement Sum (BRS) will be made known to you ahead of time. The Full Retirement Sum (FRS) is set at two times the BRS, while the Enhanced Retirement Sum (ERS) is set at three times the BRS.
How is the retirement sum set aside?
When you reach 55 years old, your Special and/or Ordinary Accounts savings will be transferred to your Retirement Account (RA), up to the Full Retirement Sum (FRS).
Why do I need to set aside Retirement Sum?
Setting aside a retirement sum when you reach 55 years old ensures that you have a regular income from your payout eligibility age:
Can I be exempted for setting aside a retirement sum?
If you are aged 55 and above and are receiving lifelong monthly payouts from a private annuity (bought using cash or under the CPF Investment Scheme) or a pension, you may apply to be exempted from setting aside a retirement sum in your Retirement Account.
You may be fully or partially exempted, depending on the lifelong monthly payout amount from your annuity or pension.
When can I start receiving my monthly payout?
You can instruct CPF Board to start your Retirement Sum Scheme (RSS) payouts anytime from your payout eligibility age.
For members turning age 70 from 2018 onwards, if you have not started your monthly payouts by age 70, the Board will do so automatically for you.
Can I be exempted from setting aside retirement sum?
You may be fully exempted from setting aside a retirement sum if the lifelong monthly payout from your annuity or pension is equal to or above the full monthly payout applicable to you under the payout benchmark, based on when you are born.
