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Starting Early

​​​​Your 1st Steps

You may not have thought about the amount of savings needed for your retirement. Thinking early gives you more time to plan and prepare.  In addition to your CPF savings, you may need to grow your retirement fund through other means such as savings or investments to support your desired quality of life in your golden years.


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As a rule of thumb, you would need about 60% to 70% of your last drawn income for your retirement expenses.

 

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What Happens To Your CPF Savings At 55? 

When you reach 55, a Retirement Account will be created for you. The savings from your Special Account and/or Ordinary Account will be transferred to your Retirement Account to form your retirement sum.

You can buy a CPF LIFE annuity using your retirement sum to receive lifelong monthly payouts from your payout eligibility age (previously known as the drawdown age), which is currently at age 65.
 
Depending on your desired CPF LIFE monthly payout and your CPF balances, you can choose from a range of payout options that best suit your needs in retirement.
 
 Your monthly payout for life* from 65Retirement Account savings required at 55
If you own a property and choose to pledge your property.$700 - $750Basic Retirement Sum (BRS)
($83,000 in 2017)
If you do not own a property or choose not to pledge your property.$1,280 - $1,380Full Retirement Sum (FRS)
($166,000 in 2017)

The FRS is 2 x BRS.
If you wish to put more savings in CPF LIFE.$1,860 - $2,000Enhanced Retirement Sum (ERS) ^
($249,000 in 2017)

The ERS is 3 x BRS.
 
*Based on CPF LIFE Standard Plan payouts computed as of 2017​
^ Available from January 2016
 
To help you plan early for retirement, the Basic Retirement Sum will be made known to you ahead of time. For each successive cohort of members turning 55, payouts need to be higher to account for long term inflation and rising standards of living. Correspondingly, the Basic Retirement Sum to be set aside has to increase.
 
 Basic Retirement Sum
Age 55 in 2016$80,500
Age 55 in 2017$83,000
Age 55 in 2018$85,500
Age 55 in 2019$88,000
Age 55 in 2020$90,500
 
 Information accurate as at 30/12/2016.

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