CPF Life is a lifetime retirement income plan that all Singapore Citizens and Permanent Residents will be eligible after 55 years of age. An income plan means that a certain sum of money will be paid out every month or is commonly referred to as an annuity plan.
Do I have a choice?
Yes and No. There are 2 automatic entry points for CPF Life:
1. When you reach 55 years old and have at least $40,000 in your Retirement Account.
2. When you reach 65 years old and have at least $60,000 in your Retirement Account.
Your Retirement Account is created when you reach 55 years old and comprises the sum of your CPF Special Account and your Ordinary Account. If the above is triggered at either age 55 or 65, CPF will send a notice to you to select the type of CPF Life plan you wish to be on. If you do not indicate your choice by the stated deadline, you will automatically be placed on the CPF Standard Plan. However, if the automatic entry points were not triggered at age 55 or 65, you can still opt into the scheme anytime between payout eligibility age (which is 65 years as at 2016) and 80 years old.
Can I choose to be excluded from CPF Life?
You can choose to be excluded from CPF Life only if you fulfill any of the following criteria:
1. You are on a pension plan and will receive monthly pension.
2. You have bought a life annuity plan using cash.
In order to be excluded from CPF Life, you will need to write in to CPF who then will assess your case.
Must I use all my Retirement Account for CPF Life?
No, but there is a certain minimum sum required. The table below will give a good summary on the options available to you.
|Conditions||Retirement Account required||Estimated monthly payouts from age 65|
|You own a property||$80,500||$660 – $720|
|You do not own a property||$161,000||$1,220 – $1,320|
|You wish to increase CPF Life coverage||up to $241,500||$1,770 – $1,920|
What are the types of CPF Life plans available?
There are only 2 different plans available under CPF Life.
1. CPF Life Standard Plan, which gives a higher monthly payout than the Basic Plan but results in lower bequest (money left to your beneficiaries after your death).
2. CPF Life Basic Plan, which gives a lower monthly payout than the Standard Plan but results in higher bequest.
When and how will payouts be made?
CPF Life payouts will start at the latest updated payout eligibility age (which is 65 years as of 2016, subject to review every year). Payouts will be made via Interbank Giro into your indicated bank account or into your CPF Ordinary Account if no bank account was specified.
What happens after death?
CPF Life monthly payouts will stop and any unused annuity premiums will be refunded into your Retirement Account, which will then be distributed to your beneficiaries.
Can I terminate my CPF Life plan after joining?
Yes, but only for the following reasons:
1. You have a medical condition, which results in you being permanently unable to find any employment or severely reduced lifespan or critically ill.
2. You are permanently leaving Singapore and West Malaysia with no intention of returning to work or live.
3. You are a Malaysian citizen and have permanently left Singapore to live in West Malaysia.
4. You are receiving monthly pension or have an annuity plan in place.
Is CPF Life payouts protected from creditors?
Yes. The monthly payouts from CPF Life cannot be claimed by creditors.
If you need more in-depth details on CPF Life, please refer to the CPF website here: https://www.cpf.gov.sg/members/faq/schemes/retirement/cpf-life