The CPF LIFE scheme provides Singaporeans with the assurance of receiving a monthly income in your retirement, regardless of how long you live. The security of a lifelong payout is important, especially as Singapore has one of the world’s longest life expectancies – which may continue to rise with healthier eating habits, social and community inclusion, and preventive healthcare and advancements in medical technologies.
Living longer and getting to spend more time with your loved ones is always a blessing. Alongside this, though, you have to plan for a retirement that may last longer than previous generations.
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Do All Singaporeans And PRs Receive A CPF LIFE Monthly Payout?
The first thing you have to note is that the CPF LIFE scheme is not a government handout. It is merely a scheme that allows you to draw on your own CPF contributions during your working years in a sustainable manner.
In other words, individuals who do not contribute to their CPF accounts, will not receive much from the scheme. These groups may include those working overseas, housewives, those unable to work and even freelancers or business owners who don’t make contributions to their Special Account or Retirement Account.
These individuals or their loved ones can choose to make voluntary contributions, via the Retirement Sum Topping-Up (RSTU) Scheme, into their CPF accounts if they still want to enjoy a comparable CPF LIFE monthly payout. Doing so will also provide a dollar-for-dollar tax relief, on up to $8,000 annually, for those contributing.
Read Also: [Beginners’ Guide] Understanding CPF LIFE And Your Monthly Payouts When You Retire In Singapore
When Do You Start Receiving CPF LIFE Monthly Payouts?
You can start receiving your CPF LIFE monthly payouts once you hit your Payout Eligibility Age (PEA). Currently, the Payout Eligibility Age starts at 65. You can also choose to defer your CPF LIFE monthly payouts for any period of time between 65 and 70.
Once you turn 70, you must start receiving your CPF LIFE monthly payouts – and cannot defer any longer.
How Much Will You Receive In CPF LIFE Monthly Payouts?
How much you receive in your CPF LIFE monthly payouts is a result of how much you have contributed over the years – either as part of your mandatory contribution from your monthly salaries or through making voluntary contributions.
However, three other factors can impact how much you receive each month:
#1 Whether you have saved the Basic Retirement Sum (BRS), Full Retirement Sum (FRS) or Enhanced Retirement Sum (ERS);
#2 Whether you choose to be on the Basic Plan, Standard Plan or Escalating Plan for CPF LIFE payouts; and
#3 When you choose to start your CPF LIFE monthly payouts, between 65 and 70
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In this article, we focus on the third point – how deferring the payout start age between 65 and 70 can impact your CPF LIFE monthly payouts.
To derive the calculations, we use a scenario of a male who turned 55 in 2025, with the Full Retirement Sum of $213,000 saved in his Retirement Account. Here’s how much the person will start off receiving each month.
CPF LIFE Monthly Payouts
| When You Start Your CPF LIFE Payouts | Basic Plan | Standard Plan | Escalating Plan |
| 65 | $1,560 | $1,700 | $1,340 |
| 66 | $1,650 | $1,810 | $1,440 |
| 67 | $1,750 | $1,920 | $1,530 |
| 68 | $1,860 | $2,040 | $1,630 |
| 69 | $1,970 | $2,160 | $1,740 |
| 70 | $2,080 | $2,290 | $1,850 |
* All figures are starting amounts. For example, those on the Basic Plan will see a drop in their CPF LIFE monthly payouts after they turn 95. Those on the Escalating Plan will see their CPF LIFE monthly payouts rise by about 2% each year to protect against rising prices.
If you are on the Basic Plan, you stand to receive a CPF LIFE monthly payout that is 33.3% higher by deferring your starting age from 65 to 70. On average, this translates to 6.0% higher CPF LIFE monthly payouts for every year you defer.
On the Standard Plan, you receive CPF LIFE monthly payouts that are also 34.7% higher by deferring your starting age from 65 to 70. This is quite similar to the Basic Plan, and also works out to about 6.2% higher CPF LIFE monthly payouts for every year you defer your CPF LIFE payouts to 70.
On the Escalating Plan, you receive a CPF LIFE monthly payout that is 38.1% higher by deferring your starting age from 65 to 70. This works out to getting 6.7% more in CPF LIFE monthly payouts for every year you defer.
Read Also: Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55
Cumulative Payouts And Bequests
Deferring your starting age not only impacts your CPF LIFE monthly payouts, but also the cumulative payouts you receive over time as well as the bequests you leave behind.
Here’s how deferring your starting age from 65 to 70 will impact your cumulative payouts and bequests.
| Start Your CPF LIFE Payouts At 65 | Basic Plan | Standard Plan | Escalating Plan |
| Live till 75 | $205,920 | $224,400 | $195,673 |
| Live till 80 | $299,520 | $326,400 | $299,720 |
| Live till 85 | $393,120 | $428,400 | $414,596 |
| Live till 90 | $486,720 | $530,400 | $541,428 |
| Start Your CPF LIFE Payouts At 70 | Basic Plan | Standard Plan | Escalating Plan |
| Live till 75 | $149,760 | $164,880 | $140,040 |
| Live till 80 | $274,560 | $302,280 | $270,145 |
| Live till 85 | $399,360 | $439,680 | $413,792 |
| Live till 90 | $524,160 | $577,080 | $572,390 |
Looking at the tables above, if you pass on at 75, you may be better off starting your payouts at 65 instead of 70. However, if you live to the average life expectancy, of around 84, you can expect to be better off by deferring your CPF LIFE payouts to start at 70.
Additionally, for those who defer but pass on before 70, your CPF savings would not have gone into the CPF LIFE scheme at all. Instead, it will still be in your CPF Retirement Account, and hence, your beneficiaries will be entitled to the full amount – inclusive of the interest returns.
Nevertheless, you will never take out of the CPF LIFE scheme less than what you put in. For example, if you pass on at 75, and you’ve already started your CPF LIFE payouts at 65, you would only have received around $205,920 from the CPF LIFE scheme. However, your contribution to the CPF LIFE scheme would have been slightly more than $315,000 – after accumulating interest rates on the $213,000 Full Retirement Sum (FRS) in your Retirement Account at 55. Hence, your beneficiaries would be entitled to the balance amount of around $109,080 (not inclusive of any interest returns after joining the CPF LIFE scheme).
As an individual, you would not have been able to enjoy all of the fruits of your life’s labour if you don’t live close to 85 or beyond. That should provide extra motivation to lead a healthier lifestyle and live long and happy lives.
If you aim to leave behind a larger bequest, deferring your payouts from 65 to 70 looks to be the logical choice. You could also look at the combination of cumulative payouts and bequests to make a decision on which plan you want to be on and how long you want to defer your CPF LIFE monthly payouts.
You also have to consider that the results may alter in some ways if you do not save up to the Full Retirement Sum. You could have only the Basic Retirement Sum or save more, up to the Enhanced Retirement Sum, but this should impact the numbers in a largely similar manner.
Each individual will have unique circumstances in their lives, and your decision on your CPF LIFE is an important retirement planning decision.
Read Also: How Long Does It Take To Beat The “Break-Even” On Your CPF LIFE Plan?
Simple Ways To Increase Your CPF LIFE Monthly Payouts
#1 Do not withdraw the $5,000, or any sums that you are eligible to withdraw, at age 55.
#2 Do not make further withdrawals at age 65.
#3 Consider making Voluntary Contributions (VC) to your CPF accounts while you are young to enjoy the effects of compounded returns.
#4 Consider the Retirement Sum Topping Up (RSTU) Scheme to contribute more to your CPF accounts, while enjoying tax savings as well.
#5 Periodically transfer your Ordinary Account balances to your Special Account to enjoy an extra 1.5% per annum in interest returns.
#6 Pay for part of your housing needs with cash to allow your CPF Ordinary Account balances to grow or for transfer to your Special Account.
Lastly, if you are still earning an income that can sustain you beyond the age of 65, you should consider deferring your CPF LIFE monthly payouts. This would give you higher monthly payouts when you stop earning an income.
Read Also: CPF LIFE VS Retirement Sum Scheme: What’s The Difference?
