When was cpf life introduced

To do so:. Are you currently on the Retirement Sum Scheme? You can choose to start receiving the payouts anytime between 65 and Do you prefer to have payouts that factor in inflation?

Find out how much John will receive, depending on the plan he selects. John may prefer the Basic Plan if he has sufficient savings elsewhere, and does not mind receiving lower monthly payouts in exchange for a larger legacy for his loved ones. At that point, his RA savings would also have been depleted and he would not have much left in his bequest.

Because of this, the Basic Plan would be suitable only if you have dependents and do not expect to live beyond your early 80s. Compared to the Basic Plan, the Standard Plan provides higher monthly payouts that remain stable for the rest of your life.

For instance, John might find the Standard Plan attractive if he wants to receive more the moment he starts CPF LIFE, and is willing to cope with inflation by cutting down on his living expenses as he grows older.

He may also find the Standard Plan a better fit if he does not have any dependents, is relatively healthy, and expects to live well beyond his 80s. With the larger monthly payout, the Standard Plan also gives him more flexibility to maintain his current lifestyle before adjusting it gradually. It is also the plan that offers the highest returns if you live up to 95 years and beyond.

The only catch is that starting payouts are significantly lower compared to the other two plans. Once started, the monthly payouts will be paid directly into your bank account. Those who are automatically enrolled into the scheme will receive a notification to select their CPF LIFE plan and payout age as they near 65 years of age. Once you have started the monthly payouts, you will receive them for as long as you live. Calculations based on 55 year-old male born in , with monthly payouts starting between age 65 to 70 For a more accurate view of your potential monthly payouts, use the CPF LIFE Estimator to work out how much you can receive with your current savings.

This will increase what you'll receive later on. Inflation eats away at your purchasing power. You end up needing more but affording less over time. That's why it's important to plan for retirement with inflation in mind. If you're worried about things being more expensive in the years ahead, the Escalating Plan is suitable for you. It offers monthly payouts that increases every year for life. If you prefer to keep within a fixed budget, choose the Standard Plan.

It offers a level monthly payout. However, this can mean that you may afford less in the future, as things get more expensive in the years ahead. If you don't mind starting with less monthly payouts which will progressively get lower later on, then the Basic Plan is good enough. Consider switching to the Escalating Plan to receive increasing payouts or Standard Plan to receive higher and level payouts.

If you own a property, you can also consider monetising your property to boost your monthly payouts. Already started receiving payouts? You still have the option of deferring until age 70, to receive higher payouts.

Find the relevant application forms you'll need, in printable version or online submission format. How much do I need for retirement? How much do you need for your dream retirement lifestyle? Chun Wei is 36 years old and looking to save up for his golden years.

Updates on 20 Apr What to consider. Ways to manage. Inclusion Will you be included? Automatic inclusion. Retirement Sum Scheme. With improvements in medical technology, life expectancy will continue to increase. To live a worry-free retirement and not be a burden to our children, we need to make sure we do not run out of savings in our old age, when income may be hardest to come by. With CPF LIFE, we can be assured that we will continue to have lifelong monthly payouts, no matter how long we live and even after our own savings are depleted.

If you can find a commercial annuity insurance product which pays out the same or higher monthly payout for life, you can apply to be exempted from CPF LIFE and withdraw all your CPF retirement savings. If you are worried about the cost of living going up as the years pass, then you need a retirement income that increases every year. The Escalating Plan has this feature.

If you prefer to keep your expenses within a fixed budget even if it means that you can afford to buy less as prices rise every year, the Standard Plan offers a level payout. Your choice of plan depends on what you value. All three plans will give a payout for as long as you live, but at different amounts.

They also allow you to enjoy the interest earned, and any unused premiums upon death will be given to your beneficiaries. You can increase your payouts by topping up your Retirement Account, up to the Enhanced Retirement Sum , or by deferring the start of your payouts until the age of For every year that you defer, your payouts will increase by up to 7 per cent.