Do I Earn Interest On My CPF Monies Once I Start Receiving CPF LIFE Payouts?


When I turn 65 and start to draw monthly payouts from CPF LIFE, does my remaining monies in my CPF Retirement Account still generate interest?

DollarsAndSense Answers:

First of all, we need to understand what happens to our monies when we enroll into the CPF LIFE scheme at the age of 65 (assuming we don’t voluntarily defer our payouts).

If you choose the CPF LIFE Standard or Escalating plan, all of the monies in your CPF Retirement Account (RA) is withdrawn and paid as premiums to purchase your CPF LIFE annuity plan. Your RA would now be empty.

It is important to note that even after your CPF LIFE policy has commenced, you are still eligible to earn interest on all your CPF accounts, namely, the Ordinary Account, Special Account, MediSave Account and Retirement Account.

However, the lump sum that you paid to purchase your CPF LIFE annuity plan is now pooled together with other Singaporeans in the CPF Lifelong Income Fund, and any interest on those monies is used for making sustainable payouts for years to come.

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