What is CPF LIFE? How the Lifelong Payout Scheme Works

CPF LIFE (Lifelong Income For the Elderly) is a national annuity scheme run by the Central Provident Fund (CPF) Board. It turns part of your CPF retirement savings into a monthly payout that lasts for as long as you live, however old you get. This guide covers how it works, the three plans and who is included. Figures are from CPF Board pages as checked in October 2026.

How CPF LIFE works

When your payouts begin, a premium is taken from your CPF Retirement Account (RA) and used to buy the annuity. The premium keeps earning CPF interest, and you receive monthly payouts for life. The more you put into your RA, the higher your payouts.

Key points, according to CPF Board:

• Payout start age: payouts can begin at 65. You can defer them up to age 70, and each year of deferral raises payouts by up to 7%, so up to 35% higher at 70.
• Interest: CPF savings earn risk-free interest of up to 6% a year.
• Bequest: if you pass away, any remaining CPF LIFE premium balance, plus other leftover CPF savings, goes to your loved ones.
• Top-ups: you can top up your RA with cash or CPF transfers to raise your payouts, including after you have joined.

Who is included

Singapore Citizens and Permanent Residents born in 1958 or later who have at least $60,000 in their RA when payouts start are included automatically. CPF Board informs eligible members before they turn 65. Other eligible Citizens and PRs can join voluntarily. You can opt out only if you already receive a pension or private annuity that pays the same or a higher monthly amount.

The three CPF LIFE plans

CPF Board offers three plans that differ in how payouts change over time:

1. Standard Plan: steady monthly payouts that do not grow, so their buying power falls as living costs rise.
2. Escalating Plan: payouts start lower, then grow by 2% a year for life, which helps against inflation.
3. Basic Plan: lower payouts than the other two plans, and they fall once your combined CPF balances drop below $60,000. Only a smaller part of your RA savings goes into the premium.

The best plan depends on how much income you need early in retirement compared with later, and how willing you are to adjust your spending as prices rise.

Retirement sums for those turning 55 in 2026

The retirement sums are reference amounts, not a mandatory amount to save. CPF Board gives these figures for members turning 55 in 2026, with estimated payouts from age 65 for a male member on the Standard Plan, assuming 6% interest:

Retirement sum	Amount	Estimated monthly payout from 65
Basic Retirement Sum	$110,200	$950
Full Retirement Sum	$220,400	$1,780
Enhanced Retirement Sum	$440,800	$3,440

Your Basic and Full Retirement Sums are fixed by the year you turn 55. The Enhanced Retirement Sum, which is the top-up limit, rises each year; CPF Board lists $456,400 for 2027. These payouts are estimates and depend on your own balances and age.

Ways to raise your payout

• Top up your RA, up to the Enhanced Retirement Sum.
• Defer the start of payouts, up to age 70.
• Choose the plan that matches your needs, and use the CPF LIFE Estimator on the CPF website to compare.

Sources

• CPF Board, CPF LIFE: cpf.gov.sg/member/retirement-income/monthly-payouts/cpf-life
• CPF Board, how the retirement sum affects your payouts: cpf.gov.sg/member/infohub/educational-resources/how-the-cpf-retirement-sum-affects-your-payouts

This is general information, not financial advice. Check cpf.gov.sg for your own figures.