money in your *cpf retirement accounts*,

 ( in English, Simplified Chinese hanyu pinyin , Malay, Tamil translations ) 

Public Announcement:

If you have money in your *cpf retirement accounts*, you must read this article 👇to the end! 

Very important Hi guys - my friend sent this message when he visited CPF - I am glad to share as follows:

I went to CPF this afternoon to check out CPF Life. My advice is to NOT opt for it. There is a fine print in the scheme that is unfair to us. Let me explain: For instance, if you have 150k in your RA now and getting 1K payout every month. The RA sum, taking into account the annual 4% interest, will give you 1K per month till you are 85 years old. 

The government promotes CPF Life, saying CPF Life will pay you for life at a lower monthly payout of about 700. Any balance left when you die is paid to your beneficiaries. 

Many people think $300 less but can get payout for life looks ok. 

What CPF did not highlight to you in the fine print is once you opt for CPF Life, say the Standard Plan, your whole 150k in RA will be transferred to the CPF Life Pool. The reduced monthly payout of 700 will come from the 150k. BUT the annual 4% interest on the 150k will NOT go to your beneficiaries when you die. Only the remaining balance of the 150k principal goes to your beneficiaries. Under the CPF Life scheme, the annual 4% interest on the 150k goes to the CPF Life Pool. It’s not yours. It’s the risk sharing feature of an annuity. 

Using the same example: 150k at 4% gives 6k interest per year. 

Over 15 years and on the reducing principal as you draw down, the average interest for 15 years is about $40k. Your beneficiaries will lose this 40k when you die. They only get the remaining balance of the original 150k. I am upset that they don’t highlight this to members who opt for CPF Life. 

I found out only when I asked many questions and went through the details with the officer. 

Many people don’t ask and are short-changed. 

公告：Gōnggào:

 如果你的*cpf退休账户*里有钱，你一定要读完这篇文章👇！ Rúguǒ nǐ de*cpf tuìxiū zhànghù*li yǒu qián, nǐ yīdìng yào dú wán zhè piān wénzhāng 👇!

 非常重要 大家好 - 我的朋友在访问 CPF 时发送了此消息 - 我很高兴分享如下： Fēicháng zhòngyào dàjiā hǎo - wǒ de péngyǒu zài fǎngwèn CPF shí fā sòng liǎo cǐ xiāoxī - wǒ hěn gāoxìng fēnxiǎng rúxià:

 今天下午我去CPF查看CPF Life。 我的建议是不要选择它。 该计划中有一个细则对我们不公平。 让我解释一下：例如，如果您现在的 RA 中有 150k，并且每个月获得 1K 的付款。 RA 金额，考虑到每年 4% 的利息，每月将为您提供 1K，直到您 85 岁。

Jīntiān xiàwǔ wǒ qù CPF chákàn CPF Life. Wǒ de jiànyì shì bùyào xuǎnzé tā. Gāi jìhuà zhōng yǒu yīgè xìzé duì wǒmen bù gōngpíng. Ràng wǒ jiěshì yīxià: Lìrú, rúguǒ nín xiànzài de RA zhōng yǒu 150k, bìngqiě měi gè yuè huòdé 1K de fùkuǎn. RA jīn'é, kǎolǜ dào měinián 4% de lìxí, měi yuè jiāng wèi nín tígōng 1K, zhídào nín 85 suì.

 政府推广CPF Life，称CPF Life将以较低的每月700元左右的金额支付您的终身。当您去世时，剩余的余额将支付给您的受益人。Zhèngfǔ tuīguǎng CPF Life, chēng CPF Life jiāng yǐ jiào dī de měi yuè 700 yuán zuǒyòu de jīn'é zhīfù nín de zhōngshēn. Dāng nín qùshì shí, shèngyú de yú'é jiāng zhīfù gěi nín de shòuyì rén.

 很多人认为少花300美元，但能得到生活保障看起来还不错 。 Hěnduō rén rènwéi shǎo huā 300 měiyuán, dàn néng dédào shēnghuó bǎozhàng kàn qǐlái hái bùcuò.

 CPF 细则中没有向您强调的是，一旦您选择 CPF Life（即标准计划），您 RA 中的全部 150k 将转入 CPF Life Pool。 每月减少的 700 美元将从 150k 中扣除。 但是，当您去世时，150k 的年利率 4% 将不会转移给您的受益人。 只有 150k 本金的剩余余额才会归您的受益人所有。 根据 CPF Life 计划，150k 的年利率为 4%，存入 CPF Life Pool。 这不是你的。 这是年金的风险分担功能。CPF xìzé zhōng méiyǒu xiàng nín qiángdiào de shì, yīdàn nín xuǎnzé CPF Life(jí biāozhǔn jìhuà), nín RA zhōng de quánbù 150k jiāng zhuǎn rù CPF Life Pool. Měi yuè jiǎnshǎo de 700 měiyuán jiāng cóng 150k zhōng kòuchú. Dànshì, dāng nín qùshì shí,150k de nián lìlǜ 4% jiāng bù huì zhuǎnyí gěi nín de shòuyì rén. Zhǐyǒu 150k běn jīn de shèngyú yú'é cái huì guī nín de shòuyì rén suǒyǒu. Gēnjù CPF Life jìhuà,150k de nián lìlǜ wèi 4%, cún rù CPF Life Pool. Zhè bùshì nǐ de. Zhè shì niánjīn de fēngxiǎn fēndān gōngnéng.

 使用相同的示例：150k 利率为 4%，每年可产生 6k 利息。Shǐyòng xiāngtóng de shìlì:150K lìlǜ wèi 4%, měinián kě chǎnshēng 6k lìxí.

 超过 15 年，随着提取的本金逐渐减少，15 年的平均利息约为 4 万美元。 当您去世时，您的受益人将失去这 40k。 他们只得到原来150k的剩余余额。 我很遗憾他们没有向选择公积金人寿保险的会员强调这一点。Chāoguò 15 nián, suízhe tíqǔ de běn jīn zhújiàn jiǎnshǎo,15 nián de píngjūn lìxí yuē wèi 4 wàn měiyuán. Dāng nín qùshì shí, nín de shòuyì rén jiāng shīqù zhè 40k. Tāmen zhǐ dédào yuánlái 150k de shèng yú yú'é. Wǒ hěn yí hàn tā men méi yǒu xiàng xuǎn zé gōng jī jīn rén shòu bǎo xiǎn de huì yuán qiáng diào zhè yī diǎn.

 当我问了很多问题并与官员详细了解后，我才发现。Dāng wǒ wènle hěnduō wèntí bìng yǔ guānyuán xiángxì liǎojiě hòu, wǒ cái fāxiàn.

 许多人不问，而且被骗了。Xǔduō rén bù wèn, érqiě bèi piànle. 

(Malay translation)

Pengumuman Awam:

  Jika anda mempunyai wang dalam *akaun persaraan cpf* anda, anda mesti membaca artikel ini 👇hingga tamat!

  Sangat penting Hai semua - rakan saya menghantar mesej ini apabila dia melawat CPF - Saya gembira untuk berkongsi seperti berikut:

  Saya pergi ke CPF petang ini untuk melihat CPF Life. Nasihat saya adalah untuk TIDAK memilihnya. Terdapat cetakan halus dalam skim yang tidak adil kepada kami. Biar saya jelaskan: Sebagai contoh, jika anda mempunyai 150k dalam RA anda sekarang dan mendapat bayaran 1K setiap bulan. Jumlah RA, dengan mengambil kira faedah 4% tahunan, akan memberi anda 1K sebulan sehingga anda berumur 85 tahun.

  Kerajaan mempromosikan CPF Life, mengatakan CPF Life akan membayar anda seumur hidup dengan bayaran bulanan yang lebih rendah iaitu kira-kira 700. Sebarang baki yang tinggal apabila anda meninggal dunia dibayar kepada benefisiari anda.

  Ramai orang berpendapat kurang $300 tetapi boleh mendapatkan bayaran seumur hidup kelihatan ok.

  Perkara yang tidak diserlahkan oleh CPF kepada anda dalam cetakan halus ialah sebaik sahaja anda memilih CPF Life, katakan Pelan Standard, keseluruhan 150k dalam RA anda akan dipindahkan ke Kolam Hayat CPF. Bayaran bulanan yang dikurangkan sebanyak 700 akan datang daripada 150k. TETAPI faedah 4% tahunan pada 150k TIDAK akan diberikan kepada penerima anda apabila anda meninggal dunia. Hanya baki pokok 150k yang tinggal kepada penerima anda. Di bawah skim CPF Life, faedah 4% tahunan ke atas 150k disalurkan kepada CPF Life Pool. Ia bukan milik anda. Ia adalah ciri perkongsian risiko bagi anuiti.

  Menggunakan contoh yang sama: 150k pada 4% memberikan faedah 6k setahun.

  Lebih 15 tahun dan pada prinsipal yang berkurangan semasa anda mengeluarkan, purata faedah selama 15 tahun ialah kira-kira $40k. Penerima manfaat anda akan kehilangan 40k ini apabila anda mati. Mereka hanya mendapat baki 150k asal sahaja. Saya kecewa kerana mereka tidak menyerlahkan perkara ini kepada ahli yang memilih CPF Life.

  Saya mendapat tahu hanya apabila saya bertanya banyak soalan dan meneliti butiran dengan pegawai itu.

  Ramai orang tidak bertanya dan berubah-ubah.

Berhenti menyimpan wang, apa sahaja yang anda ada, belanjakan sekarang. Esok yang anda simpan mungkin tidak akan datang. Jadi sial. Nikmati hasil jerih lelah anda sementara anda masih mempunyai hayat dalam badan anda. Biarkan masa depan anda menangani masalah masa depan. Jangan tinggalkan wang anda untuk dinikmati oleh peguam, ahli keluarga yang oportunis. Dan kerajaan sialan. Habiskan wang anda dan hidup sebelum anda mati. Itu sahaja.

(Tamil translation) :

பொது அறிவிப்பு:

  உங்களின் *cpf ஓய்வூதியக் கணக்குகளில்* பணம் இருந்தால், இந்தக் கட்டுரையை நீங்கள் இறுதிவரை படிக்க வேண்டும்!

  மிக முக்கியமானது வணக்கம் நண்பர்களே - எனது நண்பர் CPF க்கு வருகை தந்த போது இந்த செய்தியை அனுப்பினார் - பின்வருமாறு பகிர்வதில் மகிழ்ச்சி அடைகிறேன்:

  CPF வாழ்க்கையைப் பார்க்க இன்று மதியம் CPFக்குச் சென்றேன்.  அதை தேர்வு செய்ய வேண்டாம் என்பது எனது ஆலோசனை.  எங்களுக்கு அநீதி இழைக்கும் திட்டத்தில் ஒரு நல்ல அச்சு உள்ளது.  நான் விளக்குகிறேன்: உதாரணமாக, உங்கள் RA இல் இப்போது 150k இருந்தால், ஒவ்வொரு மாதமும் 1K பேஅவுட்டைப் பெறுகிறீர்கள்.  RA தொகை, வருடாந்திர 4% வட்டியை கணக்கில் எடுத்துக் கொண்டால், உங்களுக்கு 85 வயது வரை மாதத்திற்கு 1K வழங்கப்படும்.

  அரசாங்கம் CPF Lifeஐ ஊக்குவிக்கிறது, CPF Life உங்களுக்கு வாழ்நாள் முழுவதும் சுமார் 700 குறைந்த மாதாந்திர பேஅவுட்டில் செலுத்தும். நீங்கள் இறக்கும் போது மீதமுள்ள மீதி உங்கள் பயனாளிகளுக்கு வழங்கப்படும்.

  பலர் $300 குறைவாக நினைக்கிறார்கள், ஆனால் வாழ்க்கைக்கான பேஅவுட்டைப் பெறலாம்.

  நீங்கள் CPF லைஃப் தேர்வு செய்தவுடன், CPF ஆனது உங்களுக்குத் தெரியப்படுத்தாதது, ஸ்டாண்டர்ட் பிளான் கூறுங்கள், உங்கள் RA இல் உள்ள 150k CPF லைஃப் பூலுக்கு மாற்றப்படும்.  குறைக்கப்பட்ட மாதாந்திர பேஅவுட் 700 150 ஆயிரத்தில் இருந்து வரும்.  ஆனால் 150 ஆயிரத்திற்கான வருடாந்திர 4% வட்டி நீங்கள் இறக்கும் போது உங்கள் பயனாளிகளுக்குப் போகாது.  மீதமுள்ள 150 ஆயிரம் அசல் தொகை மட்டுமே உங்கள் பயனாளிகளுக்கு செல்கிறது.  CPF லைஃப் திட்டத்தின் கீழ், 150kக்கான வருடாந்திர 4% வட்டி CPF லைஃப் பூலுக்கு செல்கிறது.  இது உங்களுடையது அல்ல.  இது ஒரு வருடாந்திரத்தின் ஆபத்து பகிர்வு அம்சமாகும்.

  அதே எடுத்துக்காட்டைப் பயன்படுத்தி: 150k 4% வருடத்திற்கு 6k வட்டி அளிக்கிறது.

  15 ஆண்டுகளுக்கும் மேலாக மற்றும் நீங்கள் குறைக்கும் அசல் மீது, 15 ஆண்டுகளுக்கு சராசரி வட்டி சுமார் $40k ஆகும்.  நீங்கள் இறக்கும் போது உங்கள் பயனாளிகள் இந்த 40 ஆயிரத்தை இழப்பார்கள்.  அவர்கள் அசல் 150 ஆயிரத்தில் மீதமுள்ள இருப்பை மட்டுமே பெறுகிறார்கள்.  CPF வாழ்கையைத் தேர்ந்தெடுக்கும் உறுப்பினர்களுக்கு இதை அவர்கள் முன்னிலைப்படுத்தாதது எனக்கு வருத்தமாக இருக்கிறது.

  பல கேள்விகள் கேட்டு அதிகாரியிடம் விவரம் கேட்டபோதுதான் தெரிந்துகொண்டேன்.

  பலர் கேட்கவில்லை மற்றும் குறுகிய மாற்றமாக இருக்கிறார்கள்.

பணத்தை சேமிப்பதை நிறுத்துங்கள், உங்களிடம் எது இருந்தாலும், அதை இப்போதே செலவிடுங்கள். நீங்கள் சேமிக்கும் நாளை கூட வராமல் போகலாம். அதனால ஃபக் இட். உங்கள் உடலில் உயிர் இருக்கும்போதே உங்கள் உழைப்பின் பலனை அனுபவியுங்கள். எதிர்கால பிரச்சனைகளை நீங்கள் எதிர்கொள்ளட்டும். உங்கள் பணத்தை வழக்கறிஞர்கள், சந்தர்ப்பவாத குடும்ப உறுப்பினர்கள் அனுபவிக்க விட்டுவிடாதீர்கள். மற்றும் குடுத்து அரசாங்கம். நீங்கள் இறப்பதற்கு முன் உங்கள் பணத்தை செலவழித்து வாழுங்கள். அவ்வளவு தான்.

Potu aṟivippu:

  Uṅkaḷiṉ*cpf ōyvūtiyak kaṇakkukaḷil* paṇam iruntāl, intak kaṭṭuraiyai nīṅkaḷ iṟutivarai paṭikka vēṇṭum!

  Mika mukkiyamāṉatu vaṇakkam naṇparkaḷē - eṉatu naṇpar CPF kku varukai tanta pōtu inta ceytiyai aṉuppiṉār - piṉvarumāṟu pakirvatil makiḻcci aṭaikiṟēṉ:

  CPF vāḻkkaiyaip pārkka iṉṟu matiyam CPFkkuc ceṉṟēṉ. Atai tērvu ceyya vēṇṭām eṉpatu eṉatu ālōcaṉai. Eṅkaḷukku anīti iḻaikkum tiṭṭattil oru nalla accu uḷḷatu. Nāṉ viḷakkukiṟēṉ: Utāraṇamāka, uṅkaḷ RA il ippōtu 150k iruntāl, ovvoru mātamum 1K pē'avuṭṭaip peṟukiṟīrkaḷ. RA tokai, varuṭāntira 4% vaṭṭiyai kaṇakkil eṭuttuk koṇṭāl, uṅkaḷukku 85 vayatu varai mātattiṟku 1K vaḻaṅkappaṭum.

  Aracāṅkam CPF Life'ai ūkkuvikkiṟatu, CPF Life uṅkaḷukku vāḻnāḷ muḻuvatum cumār 700 kuṟainta mātāntira pē'avuṭṭil celuttum. Nīṅkaḷ iṟakkum pōtu mītamuḷḷa mīti uṅkaḷ payaṉāḷikaḷukku vaḻaṅkappaṭum.

  Palar $300 kuṟaivāka niṉaikkiṟārkaḷ, āṉāl vāḻkkaikkāṉa pē'avuṭṭaip peṟalām.

  Nīṅkaḷ CPF laiḥp tērvu ceytavuṭaṉ, CPF āṉatu uṅkaḷukkut teriyappaṭuttātatu, sṭāṇṭarṭ piḷāṉ kūṟuṅkaḷ, uṅkaḷ RA il uḷḷa 150k CPF laiḥp pūlukku māṟṟappaṭum. Kuṟaikkappaṭṭa mātāntira pē'avuṭ 700 150 āyirattil iruntu varum. Āṉāl 150 āyirattiṟkāṉa varuṭāntira 4% vaṭṭi nīṅkaḷ iṟakkum pōtu uṅkaḷ payaṉāḷikaḷukkup pōkātu. Mītamuḷḷa 150 āyiram acal tokai maṭṭumē uṅkaḷ payaṉāḷikaḷukku celkiṟatu. CPF laiḥp tiṭṭattiṉ kīḻ, 150kkkāṉa varuṭāntira 4% vaṭṭi CPF laiḥp pūlukku celkiṟatu. Itu uṅkaḷuṭaiyatu alla. Itu oru varuṭāntirattiṉ āpattu pakirvu amcamākum.

  Atē eṭuttukkāṭṭaip payaṉpaṭutti: 150K 4% varuṭattiṟku 6k vaṭṭi aḷikkiṟatu.

15 Āṇṭukaḷukkum mēlāka maṟṟum nīṅkaḷ kuṟaikkum acal mītu, 15 āṇṭukaḷukku carācari vaṭṭi cumār $40k ākum.  Nīṅkaḷ iṟakkum pōtu uṅkaḷ payaṉāḷikaḷ inta 40 āyirattai iḻappārkaḷ.  Avarkaḷ acal 150 āyirattil mītamuḷḷa iruppai maṭṭumē peṟukiṟārkaḷ.  CPF vāḻkaiyait tērnteṭukkum uṟuppiṉarkaḷukku itai avarkaḷ muṉṉilaippaṭuttātatu eṉakku varuttamāka irukkiṟatu.

  Pala kēḷvikaḷ kēṭṭu atikāriyiṭam vivaram kēṭṭapōtutāṉ terintukoṇṭēṉ.

  Palar kēṭkavillai maṟṟum kuṟukiya māṟṟamāka irukkiṟārkaḷ.

Paṇattai cēmippatai niṟuttuṅkaḷ, uṅkaḷiṭam etu iruntālum, atai ippōtē celaviṭuṅkaḷ. Nīṅkaḷ cēmikkum nāḷai kūṭa varāmal pōkalām. Ataṉāla ḥpak iṭ. Uṅkaḷ uṭalil uyir irukkumpōtē uṅkaḷ uḻaippiṉ palaṉai aṉupaviyuṅkaḷ. Etirkāla piraccaṉaikaḷai nīṅkaḷ etirkoḷḷaṭṭum. Uṅkaḷ paṇattai vaḻakkaṟiñarkaḷ, cantarppavāta kuṭumpa uṟuppiṉarkaḷ aṉupavikka viṭṭuviṭātīrkaḷ. Maṟṟum kuṭuttu aracāṅkam. Nīṅkaḷ iṟappataṟku muṉ uṅkaḷ paṇattai celavaḻittu vāḻuṅkaḷ. Avvaḷavu tāṉ.

Stop fucking saving money, whatever you have, spend it now. The tomorrow that you are saving for may not even come. So fuck it. Enjoy the fruits of your labour while you still have life in your body. Let future you deal with future problems. Don't leave your money behind to be enjoyed by lawyers, opportunistic family members. And the fucking government. Spend your fucking money and live before you die. That is all.

别再存钱了，无论你有什么，现在就花掉吧。 Bié zài cún qiánle, wúlùn nǐ yǒu shé me, xiànzài jiù huā diào ba.

你为之存钱的明天可能不会到来。 Nǐ wéi zhī cún qián de míngtiān kěnéng bù huì dàolái.

所以他妈的。 Suǒyǐ tā mā de.

当你的身体还有生命的时候，享受你的劳动成果。 Dāng nǐ de shēntǐ hái yǒu shēngmìng de shíhòu, xiǎngshòu nǐ de láodòng chéngguǒ.

让未来的你处理未来的问题。Ràng wèi lái de nǐ chǔ lǐ wèi lái de wèn tí. 

不要把钱留给律师、投机取巧的家庭成员享用。Bù yào bǎ qián liú gěi lǜ shī, tóujīqǔqiǎo de jiā tíng chéng yuán xiǎng yòng.

 还有该死的政府。Hái yǒu gāi sǐ de zhèng fǔ.

 死之前先花点钱，好好活下去。 Sǐ zhī qián xiān huā diǎn qián, hǎo hǎo huó xiàqù.

就这些。Jiù zhè xiē.

CPF LIFE VS Retirement Sum Scheme (RSS): What’s The Difference?

Is CPF LIFE really better than the old Retirement Sum Scheme?

The maximum payout age under the CPF Retirement Sum Scheme was decreased from 95 to 90. This will apply to all CPF members who turn 65 from 1 July 2020. For older CPF members who have already started receiving Retirement Sum Scheme payouts, this rule has already taken effect from 1 Jan 2020 and you should have received a letter from CPF detailing how the changes affect your payouts.

During Budget 2023, the government also announced that the minimum amount that seniors can receive on the Retirement Sum Scheme monthly payout will be increased from $250 a month to $350 from 1 June 2023. These payouts will continue until their CPF savings are depleted.

On the back of rising life expectancy in Singapore, the CPF Lifelong Income For the Elderly (LIFE) was introduced in 2009. Since then, the average life expectancy of Singaporeans has increased to 83.5 years today from 81.4 years.

CPF LIFE replaced the old Retirement Sum Scheme (RSS) as the default CPF payout scheme for Singaporeans in our retirement. While younger Singaporeans and PRs will find themselves on the CPF LIFE scheme when they turn 55, the Retirement Sum Scheme is currently the main retirement payout plan for those born before 1958.

There will remain pockets of the senior population who will be on the Retirement Sum Scheme, either because they were already on it before CPF LIFE was introduced, or find that they still qualify for it.

Who Will Still Be On the Retirement Sum Scheme?

There are three main groups of people who will find the Retirement Sum Scheme still relevant to them today.

G1. As mentioned, the first group includes seniors who were already receiving payouts from the Retirement Sum Scheme before CPF LIFE was introduced in 2009. When CPF LIFE was launched, they had the option to switch to the new scheme. Those who didn’t are still on the Retirement Sum Scheme today. These members can still decide to switch to CPF LIFE at any time before they turn 80.

G2. The second group of people are those who were born before 1958, but have not yet begun their Retirement Sum Scheme withdrawals. This is because CPF LIFE was launched with an auto-inclusion criteria that required only those born in 1958 or after to mandatorily join the CPF LIFE scheme, if they are able to. This second group of people who were born before 1958 (and turn 65 this year) can choose to remain on the Retirement Sum Scheme or switch over to CPF LIFE.

G3. The third group is those who fail to meet the CPF LIFE auto-inclusion criteria as stated on the CPF website:

– You are a Singaporean Citizen or Permanent Resident;

– Born in 1958 or after; and

– Have at least $60,000 in your Retirement Account when you start your monthly payouts

Those most likely to be unable to meet the auto-inclusion criteria for CPF LIFE would include housewives and those unable to work, as well as freelancers, self-employed and business owners in certain instances. In the coming decades, Platform Workers will not fall through this gap anymore, as mandatory CPF contributions have to be made by Platform Companies. Do note that while certain groups of people will not automatically be on CPF LIFE, they still retain the option of joining CPF LIFE if they want to.

Before going into the differences between CPF LIFE and the Retirement Sum Scheme, let’s first understand how they are similar.

CPF LIFE And Retirement Sum Scheme Are Both Providing Monthly CPF Payouts In Our Retirement

While the payout eligibility age was increased from 62 to 65 in 2007, around the same time as the introduction of CPF LIFE, it should not be seen as a difference between the two schemes. This is because the change affected everyone, including those who remained and those who will enter the Retirement Sum Scheme going forward.

Both CPF LIFE and the Retirement Sum Scheme are meant to sustain us in our retirement by providing monthly payouts derived from our CPF account balances. As the life expectancy of Singaporeans increase, we may expect the retirement age and the payout eligibility age to increase as well.

Both schemes also require us to set aside a retirement sum in our Retirement Account (RA). When we turn 55, our combined CPF Ordinary Account (OA) and Special Account (SA) balances will be funnelled into the newly created RA.

For those who turn 55 in 2023, the Full Retirement Sum (FRS) will be $198,000. If we have more than the FRS in our OA and SA, we can either choose to withdraw the remaining sum or contribute more to our RA up to the Enhanced Retirement Sum (ERS). Even if we are not able to contribute the FRS, we can still choose to withdraw a maximum of $5,000 from our Retirement Account balances at 55.

In both schemes, we can start receiving our monthly payouts from age payout eligibility age, which is currently 65, to tide us through our retirement.

CPF LIFE VS Retirement Sum Scheme

As you may have worked out, anyone aiming to accumulate the Full Retirement Sum in their Retirement Account today will automatically be enrolled in CPF LIFE. Currently, the only way for younger Singaporeans and PRs to enter the Retirement Sum Scheme is to fail to meet the CPF LIFE auto-inclusion criteria. Even then, you can still opt to join CPF LIFE.

As a recap, here’s the CPF LIFE auto-inclusion criteria:

●You turned 55 between 1 January 2013 and 30 April 2016:

● At least $40,000 in your Retirement Account when you reach 55 years old; or

● At least $60,000 in your Retirement Account six months before you reach your payout eligibility age.

○You turned 55 on 1 May 2016 and after:

○ At least $60,000 in your Retirement Account six months before you reach your payout eligibility age.

[Source: CPF]

In our Retirement Account (RA), our balances compound at 4% per annum (p.a.), with the first $60,000 earning an additional 1% p.a. in interest, and the first $30,000 earning an extra additional 1% p.a. When we reach our payout eligibility age of 65, we can start receiving monthly payouts from either scheme. We can also choose to defer our payouts until we reach a maximum of 70 years old.

After understanding the similarities, we can better understand the five differences between the CPF LIFE Scheme and the Retirement Sum Scheme. However, do note that some of the differences no longer apply to the majority of those who enter the Retirement Sum Scheme today, as they would not have sufficient balances in their RA. If they did have sufficient balances, they would have been automatically put on the CPF LIFE scheme.

#1 How We Receive Payouts

The biggest difference comes from how we receive our monthly payouts under the two schemes.

Under the Retirement Sum Scheme, we receive payouts from our Retirement Account balances. We will still be able to monitor and track our funds within our Retirement Account.

Under CPF LIFE, once we start receiving our monthly payouts, it means we have contributed our funds into the CPF LIFE scheme. For many of us, this means the bulk of our funds no longer sit within our Retirement Account, and we receive our monthly payouts from the CPF LIFE scheme, which we have contributed to.

As a side note, on CPF LIFE, those who opt for the Basic Plan will continue withdrawing their funds from the Retirement Account, while having to contribute an upfront premium to CPF LIFE to continue their withdrawals from the scheme should they live beyond what their Retirement Account can distribute.

#2 Withdrawal Age

On both the CPF LIFE scheme and Retirement Sum Scheme, the withdrawal age commences at 65. However, as explained above, this wasn’t always the case as the withdrawal age on the old Retirement Sum Scheme was 62 in 2007.

On both CPF LIFE and the Retirement Sum Scheme, the maximum age we are able to defer our monthly payouts to is when we turn 70. Again, this was not always the case as there was no limit to how long we could defer our monthly payouts on the Retirement Sum Scheme in the past.

In other words, opting to stay on the Retirement Sum Scheme, instead of opting to join CPF LIFE doesn’t allow you to make your withdrawals any earlier or later. This isn’t really a difference between the two schemes as the policies could have been effected even if CPF LIFE never existed.

#3 Buying A Property

On the Retirement Sum Scheme, we were able to purchase a property with our Retirement Account balances up to the Basic Retirement Sum, which is half of the Full Retirement Sum. We were able to do this at any point we wished, primarily because our funds still reside in our Retirement Account as opposed to within the CPF LIFE scheme.

On CPF LIFE, our balances in our Retirement Account is contributed into CPF LIFE, typically when we turn 65. While we can continue using our Retirement Account balances to purchase a property until that point, this flexibility is gone once our Retirement Account funds is contributed into CPF LIFE.

#4 Interest Returns From CPF

Both funds that are contributed to CPF LIFE or kept in Retirement Sum Scheme earn interest from the government. However, the interest returns are paid to us in a slightly different method.

The difference is that on the Retirement Sum Scheme, the interest is paid into our Retirement Account Balances. On CPF LIFE, funds that are contributed to the scheme earn an interest that is paid to the Lifelong Income Fund, which is meant to continue giving monthly payouts to those who live longer.

One important point to note is that while we do not receive the interest payments on funds contributed to CPF LIFE directly, our financial futures are secured, especially if we live beyond how long our funds would have lasted. Secondly, if we pass on early, our beneficiaries will not be taking out from the CPF LIFE scheme less than what we have put in, minus the payouts we have received under CPF LIFE. We can understand this from the article on CPF LIFE “benefit illustration” that we researched below.

#5 Lifelong Payouts

Another important difference between the two retirement schemes is that CPF LIFE offers the security and peace of mind that regardless of how long we live, we will continue receiving our monthly payouts. The fact is that Singaporeans have one of the longest life expectancies in the world. According to government statistics, 1 in 3 Singaporeans aged 65 today will live beyond 90, and there are also close to 1,200 centenarians in Singapore today, compared to just 50 in 1990.

On the Retirement Sum Scheme, our monthly payouts only last until our Retirement Account balances are depleted. Based on the RA interest rate of 4%, our funds is typically meant to last up to age 85. However, as we earn an additional 1% p.a. on the first $60,000 and an extra additional 1% p.a. on our first $30,000, payouts under the Retirement Sum Scheme may last until about the age of 90*.

[*UPDATE: The government announced that all CPF members under the Retirement Sum Scheme who turn 65 from 1 July 2020 will come under the new payout rules, which spreads payouts to age 90, rather than 95, which will result in higher payouts for members each month. The CPF Board will send out a letter to all RSS members who are receiving payouts as of 1 January 2020 to inform them whether they will be affected by the changes.

In Budget 2023, the minimum monthly payouts for those on the Retirement Sum Scheme will also be increased from $250 to $350 from 1 June 2023. This will go on until their Retirement Account savings are depleted.]

It seems like the CPF LIFE is really, really forward-thinking as it provides payouts for life unlike the Retirement Sum Scheme which has a limited duration. Of course, we also have to note that CPF LIFE was introduced in 2009, while the extra additional 1% on the first $30,000 of our Retirement Account balances was introduced only in 2016.

How Much Do You Get In Monthly Payouts On CPF LIFE Vesus Retirement Sum Scheme (RSS)

On both the CPF LIFE and Retirement Sum Scheme, members can expect to receive a similar payout.

Amount in 2020 ¹

Monthly Payouts From age 65 ²

CPF LIFE (Standard Plan)³

Retirement Sum Scheme⁴

●Basic Retirement Sum (BRS) $90,500¹; $750 – $810³;  $750 – $810⁴.

●Full Retirement Sum (FRS) $181,000¹; $1,390 – $1,490³; $1,390 – $1,490⁴.

●Enhanced Retirement Sum (ERS) $271,500¹; $2,030 – $2,1803; $2,030 – $2,180⁴.

[Source: CPF]

(Example is based on 2020 figures, and should apply similarly to 2023 figures)

Ensure You Have A Plan For Your Retirement

We need to ensure that our retirement plans are not solely reliant on our CPF funds. While it provides a good safety net, we can see that there have been adjustments to the scheme in the past, and there is nothing to say that in 30 years, when some of us may be retiring, the scheme will still look the same as it does today.

Of course, we’re not saying it will disappear altogether! In fact, the scheme will very likely exist – whether in the current form or an updated form. What we’re saying is that we need to ensure that we have supplementary plans to secure a comfortable retirement for us and our spouse.

Regardless of whether you were an older Singaporean on the Retirement Sum Scheme or a younger Singaporean who will join the CPF LIFE scheme, we can see that the government is trying to tweak the schemes to offer greater security in retirement solutions for Singaporeans. While some label this as “shifting goal posts”, the alternative is that we retire and find that the amount we set aside is not able to keep up with the cost of living.

CPF LIFE or Retirement Sum Scheme payouts are also meant to provide a basic retirement for Singaporeans and PRs. The majority of us are living beyond this basic retirement level and will need to put in place other sources of retirement income in order to continue our current standard of living.

This article was first published on 13 November 2019 and updated with new information.

• How Much Should I Have In Savings And CPF To Have A Comfortable Retirement? ¹

• [Beginners’ Guide] Understanding CPF LIFE And Your Monthly Payouts When You Retire In Singapore ²

• Complete Guide To Understanding The “Benefit Illustration” Of CPF LIFE Payouts ³

• How Long Does It Take To Beat The “Break-Even” On Your CPF LIFE Plan? ⁴

• Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55 ⁵

• Turning 55? Here’s what you should Consider when planning your CPF withdrawals ⁶

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⁶ Turning 55 Years Of Age? Here’s What You Should Consider When Planning Your CPF Withdrawals

When you turn 55, you are eligible to finally withdrawn part of your CPF. Here’s what you need to know so that you can best plan your CPF withdrawals.

For Singaporeans, there are a few milestones that are as momentous as reaching the age of 55, since that is the CPF Retirement Age, and the earliest time you could withdraw your CPF monies that you have been accumulating diligently and mandatorily for most of your life. For PRs, they can choose to stay on or just cash out all CPF accounts and leave the island. 

A recent survey of 7,200 Singapore residents aged 55 to 70 conducted by the CPF Board revealed that 40% of CPF members who turned 55 didn’t take out a single cent.

For those who did withdraw monies, 51% of them kept their withdrawn CPF monies in savings accounts and equivalent instruments. The rest used the monies to pay for near-term expenditure like household expenses, their children’s education and paying off loans or spending on big-ticket items like holidays, overseas trips or home renovations.

By understanding how CPF withdrawals work, you can make an informed decision on whether you want to withdraw – and how much.

Happy 55th Birthday To You ! Here’s What Happens At Age 55

As a special “Happy Birthday” from CPF, you’ll receive a “Reaching 55” information packet from CPF a few months before your 55th birthday. This includes the opportunity to make an appointment to attend the CPF Retirement Planning Service, a one-to-one session with a CPF staff who would explain the CPF rules that apply to you once you reach 55.

Creation Of Your CPF Retirement Account ( Auto Mode)

Once you reach 55, your CPF Retirement Account (RA) will be created. Savings from your Special Account and Ordinary Account up to the Full Retirement Sum will be transferred to your RA. Funds in your RA will be drawn to provide monthly retirement income at your payout eligibility age (currently 65 for CPF members born in 1954 or later).

If you are born 1958 or after and have $60,000 or more in your RA 6 months before your payout eligibility age, you will be automatically enrolled in the CPF LIFE scheme, which provides monthly payouts for life. Otherwise, you will be on the Retirement Sum Scheme, where you will receive monthly payouts until your RA monies run out.

After the Full Retirement Sum has been transferred to your RA, you may then withdraw your remaining monies at any time. For higher payouts under CPF LIFE, you may choose to further top up your RA to the Enhanced Retirement Sum of $264,000.

If You Don’t Have Enough For The Full Retirement Sum

If you do not have the Full Retirement Sum in your Special Account and Ordinary Account, you can apply to withdraw your RA savings (excluding government grants, top-up monies, and interest earned) beyond the Basic Retirement Sum, if you pledge a property you own.

If You Don’t Have Enough For The Basic Retirement Sum

Even if you do not have enough monies to meet the Basic Retirement Sum, even with property pledge, you can still withdraw up to $5,000 of your CPF monies at age 55.

To give you a better idea of how much CPF monies you are eligible to withdraw, you can use this handy CPF Withdrawal Calculator.

Once Your Reach CPF Payout Eligibility Age

CPF members born in 1958 or after have the option to withdraw a lump sum of up to 20% of their Retirement Account savings once they reach their payout eligibility age, including the first $5,000 that can be withdrawn at 55.

CPF members who are born in 1957 or earlier can already withdraw up to 10% of their Ordinary Account and Special Account monies when they turned 55. Thus, they can withdraw a lump sum of an additional 10% of their Retirement Account monies at the payout eligibility age.

Should You Withdraw Your CPF?

Obviously, withdrawing your CPF is a personal decision. If you have immediate needs, such as to cope with daily expenses, paying off loans or giving it to your children, then it is a no-brainer.

But if you do not have any immediate use for it, understand that by cashing out your CPF, you’re giving up opportunity cost of earning good risk-free interest that is unmatched by comparable financial products in the market.

If you withdraw your CPF savings from age 55, you will have less for your monthly CPF LIFE payouts, which commences as early as age 65.

Interest rates for members 55 and above

■ Balances in Special, MediSave and Retirement Accounts¹

□ Interest rate (p.a.)²

■First $30,000¹    □6%²

■Next $30,000¹    □5%²

■Amounts above $60,000¹ □4%²

[Source: CPF]

Some might argue that investing in stocks or placing it in other investments could potentially give your better returns, but you should remember that with your retirement just a few years away, you may not have the time to ride out market volatility. Needing access to monies and selling off your investments during a market downturn would be a shame.

How To Withdraw CPF Monies?

You can apply to withdraw your CPF monies online, and receive it via interbank GIRO or PayNow, or mail in a a hardcopy of the form. Though not necessary, you can also visit any of the 5 CPF service centres islandwide for assistance.

Withdrawal Of CPF Monies Doesn’t Have To Be All Or Nothing

You do not need to withdraw the full amount that you’re eligible for at one go. Unlike the past, where you can only withdraw once a year, liquidity of your CPF funds is much improved, so you can plan and withdraw what you need, with comfort in the knowledge that if you do need the monies some time in future, it is there for you at a moment’s (technically a day, with PayNow) notice.