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CPF Life

>> Tuesday, September 15, 2009

Who can join CPF Life?
 
You can join CPF Life if you are a Singapore citizen or permanent resident aged between 55 and 80, with savings in your Retirement Account.

Those aged 55 to 79 have up to the time they reach age 80 to sign up for CPF Life. But those aged 80 and above have to do so by December next year.

A bonus of up to $4,000 is given to Singapore citizens who do so by December next year. To qualify, your annual income and the annual value of your property must not exceed $54,000 and $11,000 respectively.


What is the monthly payout?

Your monthly payout depends on your Retirement Account savings used to join CPF Life.

There is no minimum amount required, but note that members with lower balances will receive correspondingly lower monthly payouts.

Other factors that will affect the monthly payout include your gender, the age at which you join the scheme and the CPF Life plan chosen. Generally, females will receive lower payouts as they tend to live longer.


Is the monthly payout fixed?

No, the monthly payout may be adjusted every year to take into account factors such as CPF interest rates and mortality experience.


When will I start receiving my monthly payouts?

If you join before your drawdown age (DDA), you will start to receive your monthly payout from your DDA.

If you join after your DDA, you will start to receive the monthly payout from the following month after you are included in the scheme.

If you were born in 1943 or earlier, your DDA is 60. For those born between 1944 and 1949, their DDA is 62. If you were born in 1950 or 1951, your DDA is 63 and if you were born in 1952 or 1953, your DDA is 64. For those born in 1954 or later, your DDA is 65.


Can I change my plan after I join?

No, you can't. This is because changing your plan will affect other members who are already in the scheme.


Can I withdraw after I join?

No, except on the following grounds:

  • Medical grounds of shortened life expectancy;
  • Leaving Singapore and West Malaysia permanently with no intention of returning to either country.

What happens when I die?

Any refund will be made to your CPF account and paid to your beneficiaries, together with the rest of your CPF savings.

If you had chosen the CPF Life plan without a refund feature, that is, the Life Income Plan, there is no refund upon death even if monthly payouts have not started.


How do I choose the most suitable CPF Life plan?

The four plans differ in the level of monthly payout and the refund amount that may be left to your beneficiaries.
  • Life Basic Plan
This plan gives a lower payout than the Balanced Plan, but leaves more for your beneficiaries. It is recommended if you are in the pink of health or have sufficient savings outside your CPF.
  • Life Balanced Plan
If you wish to strike a balance between your monthly payout and the bequest, the Life Balanced Plan may be more suitable for you. This is also the default plan for members who are automatically included under the scheme from 2013, if they do not choose a particular plan.
  • Life Plus Plan
This plan provides a higher payout than the Balanced Plan, but leaves less for your beneficiaries. This will appeal more to individuals with chronic medical conditions who want the higher payouts to cope with the cost of living, and yet wish to leave something behind for their beneficiaries.
  • Life Income Plan
This plan gives the highest payout, but does not leave anything for your beneficiaries. This plan may be more suitable for those who do not have beneficiaries.


What else should I consider?

You should not depend on CPF Life to meet all your retirement needs as the payouts may be insufficient. Start saving more and plan your retirement early. Also, ensure that you have funds set aside for medical expenses and insurance.

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