Source: CPF
What is CPF LIFE in the year 2020?
CPF LIFE is a scheme that is meant to provide you with a fixed monthly income from when you start your retirement at age 65 till when you are dead.
When you reach 55 years old, a Retirement Account is created and the Retirement Sum is transferred from your Ordinary and Special Account to this account.
The money will be used to fund your retirement when you reach the
It is like a one-time annuity insurance payment instead of a monthly annuity insurance payment like that one most people signed up for*.
Recommended Read: What is CPF Enhanced Retirement Sum (ERS)?
However, it has an embedded feature - sort of like life insurance.
In the event that you passed away before you fully utilised your CPF Retirement Sum, the amount remaining will be passed to your dependents/beneficiaries.
This sum of money is also known as 'Bequest'.
You will need to choose between 3 CPF LIFE Schemes: The Basic Plan, the Standard Plan, and the new Escalating Plan
| Topics | Basic Plan | Standard Plan | Escalating Plan |
|---|---|---|---|
| Monthly Payout |
Mid
|
High
|
Low
|
| Bequest |
High
|
Low
|
Mid
|
| Payout Growth |
NA
|
NA
|
2% PA**
|
*Annuity Plan is an insurance plan that pays you a monthly amount each month when you reach a certain age (usually when you retire). It will continue to pay you until you pass away.
**Your CPF LIFE monthly payout will increase by 2% every year. That increase will take place every year in the month your first payout was made.
**Your CPF LIFE monthly payout will increase by 2% every year. That increase will take place every year in the month your first payout was made.
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retirement age current is still at 62, not 65 as you mentioned.
ReplyDeleteHi,
DeleteYup, you are correct, the actual retirement age is 62.
What we actually meant in the article is the CPF payout age, which is 65.
We have made the changes in the article.
Thank you for letting us know! 😁