Unlocking retirement income with CPF LIFE

Understanding retirement income and payouts around CPF can be overwhelming. The different pension payout options available and the different amounts of CPF we can withdraw are confusing for most people. 

To plan retirement well, Singaporeans have to understand how best to utilise CPF LIFE (CPF Lifelong Income For The Elderly) for their retirement income needs.

Understanding CPF retirement sums: BRS, FRS, and ERS

The CPF retirement sum is a reference point for your desired monthly retirement payouts. There are three levels to consider:

Basic Retirement Sum (BRS) and Full Retirement Sum (FRS)

The BRS provides basic monthly payouts to cover living expenses, excluding rent. For those turning 55 in 2025, the BRS is set at S$106,500.

The FRS is twice the BRS and is a reference point for how much an average Singaporean needs at retirement. It is currently S$213,000 for those turning 55 in 2025.

If you choose to pledge a property that you own, and its remaining lease can last you till at least 95 years old, you only need to set aside CPF retirement savings amounting to BRS to meet the FRS.

Once you hit the FRS (with property pledging or not), you can withdraw any CPF SA and OA monies above the FRS amount.

Enhanced Retirement Sum (ERS)

The ERS offers higher monthly payouts for a more comfortable retirement. Since 2025, it has increased to four times the BRS, allowing for potentially higher payouts of up to S$3,300 per month from age 65 through CPF top-ups.

The ERS is also the ceiling to which you can top up your CPF Retirement Account (RA), which will be opened when you turn 55. 

These sums are adjusted annually based on factors like inflation and life expectancy. Your actual savings and payouts depend on individual circumstances.

Read more: How much can you withdraw from your CPF?

What is CPF LIFE?

CPF LIFE is an annuity scheme that provides a monthly payout starting from the age of 65. From an annuity scheme, you can generally expect a fixed sum of money paid to you monthly for the rest of your life.

Under the scheme, there are three CPF LIFE plans (Standard, Basic and Escalating) to suit different needs. You will choose your CPF LIFE plan when you wish to start your payouts, any time from 65 to 70.

What are the different CPF LIFE plans?

The key differences among the Standard, Basic and Escalating Plans are

1. Monthly payout amounts
2. Bequest (or inheritance) amount

The default option for CPF LIFE is the Standard Plan, which provides higher monthly payouts while leaving a lower bequest. 

In contrast, the Basic Plan gives a lower monthly payout but leaves a higher bequest. Being a legacy option from the CPF Retirement Sum Scheme, it will give progressively smaller payouts as CPF balances decline.

The Escalating Plan provides payouts that increase by 2% each year so that CPF members can generally maintain their standards of living even as prices rise over the years. However, there is no free lunch in the world, so it comes with a lower initial monthly payout.

How the Retirement Sum and CPF LIFE plan affect monthly payout amounts

How much your monthly payouts are depend on:

1. How much there is in your Retirement Account (RA)
2. What CPF LIFE plan you choose

A common misconception is that you need the exact Basic, Full or Enhanced Retirement Sum in your Retirement Account to choose your CPF LIFE plan, which in turn determines the amount of monthly payouts you can receive. 

In actuality, apart from determining the withdrawable amounts at age 55, you can freely choose whichever CPF LIFE you prefer as long as you meet the eligibility requirements. The BRS, FRS and ERS, in relation to estimated monthly payouts, are simply reference points to illustrate your options.

Here’s an example of how much someone who is turning 55 in 2025 will receive in monthly payouts 10 years later, depending on their choice of CPF LIFE plan:

Estimated monthly payouts based on the 3 CPF LIFE plans

Useful CPF LIFE calculators to choose your desired payouts

On the CPF website, you will find two useful calculators for your planning.

If you are under 55, you can use the Retirement Payout Planner. Input your desired monthly payout at retirement, current monthly income and bonus (if any), and it will calculate your projected payout at 65.

Another tool is the CPF LIFE Estimator, which is for CPF members aged 55 to 79 to estimate their monthly payout, which uses your current CPF balances, desired payout start age, and preferred plan type to calculate your potential monthly payouts.

When interpreting the results, consider how each plan aligns with your retirement goals. A quick recap: the Standard Plan offers steady monthly payouts, the Escalating Plan provides increasing payouts to combat inflation, and the Basic Plan offers progressively lower payouts over time.

If you have reached age 65, you can easily access your monthly payout information through your Retirement dashboard. 

Read more:

• How much do you need to retire in Singapore?
• CPF OA, SA, MA, and RA interest rates
• CPF Special Account closure: What can you do next?
• How to be a CPF millionaire | Science of Wealth

Getting started for CPF and retirement planning

Retirement planning is highly personal – how much CPF retirement savings you need, or what CPF LIFE plan you should choose should be mapped out in your plan. Make good use of the CPF LIFE calculators to estimate your financial needs at retirement, and set out to achieve them.

The luxury of choice at retirement is often given to those who have planned their CPF usage early. It grants you a sufficient runway to compound your savings now, so you don’t have to scramble later.

Grow your CPF today – find out how you can maximise your CPF savings with Endowus.