CPF LIFE is a new scheme that will provide lifelong income for our elderly in their retirement.
When will CPF LIFE be launched?
Members who are born in or before 1954 can apply to join the scheme from September 2009.
Members who are born after 1954 can apply to join the scheme when they turn 55; those born after 1957 and have at least $40,000 in their Retirement Account (RA) will be automatically included in the scheme.
How does CPF LIFE work?
Upon a member’s enrolment into CPF LIFE, a portion of the cash savings in his Retirement Account (RA) will be set aside as the premium for an annuity. Combined with the remaining cash savings, the member will get a lifelong monthly income from his Draw Down Age (DDA). For refundable plans, depending on the member’s age when he passes away, his beneficiaries would be able to receive a bequest.
CPF LIFE Plans
Four LIFE plans will be offered to CPF members, giving a range of trade-offs between providing for oneself and leaving a bequest for one’s beneficiaries. The default plan will be the LIFE Balanced Plan which provides a member with a moderate level of income during retirement, and balances the bequest amount available for his beneficiaries upon his demise.
Members who prefer higher monthly income, and wish to leave behind less for their beneficiaries, may choose the LIFE Plus Plan. For those who are willing to accept a lower monthly income in exchange for a higher bequest amount, they can choose the LIFE Basic Plan. The fourth and final plan is the LIFE Income Plan which offers the highest monthly income. However, members who choose this plan would leave behind nothing when they pass away.
LIFE Bonus (L-Bonus)
To encourage participation in CPF LIFE, a LIFE Bonus (L-Bonus) will be given to members, born in 1962 or earlier, when they join the scheme.
CPF LIFE Payout Estimator
Calculate your lifelong income with the CPF LIFE Payout Estimator.
You can download the brochure here (CPF).
Source: CPF Board