CPF LIFE (Lifelong Income for the Elderly) is Singapore’s national annuity scheme, ensuring retirees receive monthly payouts for life. Unlike traditional savings that may deplete, CPF LIFE provides a secure, continuous income stream throughout retirement.
As Singaporeans live longer due to advancements in healthcare, CPF LIFE helps prevent financial insecurity in old age, making retirement planning more stable.
Why Do You Need CPF LIFE?
No one can predict how long they will live. With life expectancy increasing, many retirees worry about running out of savings. CPF LIFE eliminates this concern by providing lifelong monthly payouts, regardless of how long you live.
CPF LIFE Monthly Payouts in 2025
The monthly CPF LIFE payout depends on various factors, including:
- The amount set aside in the CPF Retirement Account (RA).
- Whether you opt for the Enhanced Retirement Sum (ERS).
- The age at which you start receiving payouts.
For 2025, the Enhanced Retirement Sum (ERS) is set at $426,000.
| CPF LIFE Monthly Payouts in 2025 | Estimated Monthly Payouts |
|---|---|
| Members topping up ERS at 55 (starting payouts at 65) | $3,100 – $3,300 per month |
| Members turning 65 in 2025 who set aside the Full Retirement Sum (FRS) at 55 | $2,500 – $2,700 per month |
Individuals can estimate their personalized CPF LIFE payout amounts using the official CPF Monthly Payout Estimator.
How CPF LIFE Helps in Retirement
CPF LIFE is different from traditional retirement savings because:
- It ensures you receive monthly payouts for life.
- There are three different CPF LIFE plans to meet different financial needs.
- You can increase your payouts by deferring payments or topping up your CPF account.
CPF LIFE Plans – Which One Should You Choose?
CPF LIFE offers three plans, catering to different retirement needs and expectations.
| CPF LIFE Plan | Key Features |
|---|---|
| Basic Plan | Lower payouts but higher bequests (savings left for beneficiaries). Monthly payouts decrease over time. |
| Standard Plan | Fixed monthly payouts for life. Moderate balance between payout amount and bequest. |
| Escalating Plan | Payouts increase by 2% per year to keep up with inflation, but initial payouts are lower. |
How to Increase CPF LIFE Monthly Payouts
There are two main ways to increase CPF LIFE payouts:
1. Top Up Your CPF Retirement Account (RA)
- By topping up to the Enhanced Retirement Sum (ERS), retirees can receive higher payouts.
- CPF members can make voluntary top-ups to increase future CPF LIFE payments.
2. Defer CPF LIFE Payouts
- CPF LIFE payouts typically start at 65, but deferring payouts until 70 increases monthly payments by 7% per deferred year.
- Deferring payouts can maximize retirement income for individuals with additional financial resources.
CPF LIFE vs. Retirement Sum Scheme (RSS) – What’s the Difference?
Both CPF LIFE and RSS provide retirement payouts, but there are two major differences:
| Feature | CPF LIFE | Retirement Sum Scheme (RSS) |
|---|---|---|
| Lifelong Payouts | Yes, payouts last for life. | No, payouts stop once CPF RA savings run out. |
| Who Qualifies? | Those born in 1958 or later automatically join CPF LIFE. | Those born before 1958 remain under RSS but can switch to CPF LIFE. |
Key Takeaways – What You Need to Know About CPF LIFE
1. CPF LIFE Ensures You Never Run Out of Money
Unlike fixed retirement savings, CPF LIFE provides lifetime payouts, ensuring retirees have a stable source of income.
2. There Are Three CPF LIFE Plans to Choose From
Each plan suits different needs:
- Basic Plan – More savings left for beneficiaries.
- Standard Plan – Fixed monthly payouts.
- Escalating Plan – 2% annual payout increases to combat inflation.
3. You Can Increase Your CPF LIFE Payouts
By topping up your CPF Retirement Account (RA) or deferring payouts until age 70, retirees can receive higher monthly payments.
4. CPF LIFE Is Different from the Retirement Sum Scheme (RSS)
CPF LIFE guarantees lifelong payouts, while RSS stops payouts once savings are depleted.
FAQs
How much will I receive from CPF LIFE in 2025?
- If you top up to the Enhanced Retirement Sum (ERS) at 55, you can receive $3,100 – $3,300 per month starting from age 65.
- If you set aside the Full Retirement Sum (FRS) at 55, your payouts will range from $2,500 – $2,700 per month.
Can I change my CPF LIFE plan after selecting one?
No, once payouts begin, you cannot switch CPF LIFE plans. Choose carefully based on your retirement goals.
Which CPF LIFE plan is best for me?
- Choose the Basic Plan if you want higher bequests for your family.
- Choose the Standard Plan for a stable, fixed monthly payout.
- Choose the Escalating Plan if you want your payouts to increase by 2% annually to combat inflation.
Can I defer my CPF LIFE payouts to get higher monthly payments?
Yes, delaying payouts until age 70 increases your monthly CPF LIFE payments by 7% per year of delay.
Is CPF LIFE compulsory for all retirees?
CPF LIFE is automatic for Singaporeans and PRs born in 1958 or later with sufficient CPF RA savings.
What happens if I outlive my CPF savings?
With CPF LIFE, you continue receiving payouts no matter how long you live, unlike the RSS.
Where can I check my CPF LIFE payout estimates?
Use the CPF Monthly Payout Estimator on the official CPF Board website.
How do I top up my CPF Retirement Account?
CPF members can top up their RA through CPF transfers, cash contributions, or government-supported schemes.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.