At 55, a CPF member Retirement Account is set aside, and at 65 it starts paying a monthly income for life through CPF LIFE. The size of that income depends on how much was set aside, which plan was chosen, and when payouts start, and each of those choices is visible in the numbers below.

The retirement sums: Basic, Full, and Enhanced

CPF LIFE begins with the Retirement Account, created at 55 from the member Ordinary and Special Account balances. The amount set aside in the Retirement Account is measured against three benchmarks, called retirement sums, which the CPF Board sets each year for the cohort turning 55 in that year. For members turning 55 in 2026, the Basic Retirement Sum is S$110,200, the Full Retirement Sum is S$220,400, and the Enhanced Retirement Sum is S$440,800. The Full Retirement Sum is twice the Basic, and the Enhanced is four times the Basic, and the relationship holds for other cohorts, though the dollar figures differ by cohort year, because the sums are revised annually to keep pace with inflation and with living standards. A member turning 55 in 2025 faced lower sums, and a member turning 55 in 2027 will face figures the Board will publish in due course. The cohort year should always be stated alongside a retirement sum, because a sum without its cohort is a figure without a date.

The sums are targets, not requirements to be met from the member own balances alone. A member whose Retirement Account at 55 is below the Full Retirement Sum can top it up with cash, with transfers from a spouse CPF accounts where eligible, or with the proceeds of a property pledge or charge in the case of the Basic Retirement Sum, which allows a member with a property to set aside the Basic sum in cash and pledge the property for the difference to the Full sum, with the pledge amount refunded into the Retirement Account on the sale of the property. A member whose balance exceeds the Enhanced Retirement Sum can keep the excess in the Retirement Account, where it earns interest and can be withdrawn, or top up to the Enhanced sum and leave the rest in the Ordinary Account. The choice of sum is a choice about the monthly payout, because the payout is calculated from the amount set aside, and the next sections show the payout that each sum is estimated to produce.

Members are automatically included in CPF LIFE if they are Singapore Citizens or Permanent Residents born in 1958 or later, with at least S$60,000 in their Retirement Account at 55, or at the point they are eligible. The premium for CPF LIFE is deducted from the Retirement Account, and the balance remaining after the premium stays in the Retirement Account, earning interest and available for withdrawal under the rules that apply. Members who prefer to manage their own retirement income can apply to be exempted if they receive a lifelong monthly pension or annuity that meets the Board criteria, but the default, and the expectation for most members, is CPF LIFE membership, with the plan choice made between 65 and 70, and the Standard Plan applying by default if no choice is made and payouts start at 70.

How CPF LIFE works: premium, pool, and payout

CPF LIFE is a national annuity scheme, which means it pools longevity risk across all its members. Each member pays a premium from their Retirement Account into the CPF LIFE fund, and the fund pays each member a monthly income for as long as they live. Members who die early leave premium unpaid out in payouts, and that unpaid premium funds the payouts of members who live longer than average. That transfer, from the short-lived to the long-lived inside the pool, is the whole point of an annuity, and it is what allows CPF LIFE to promise a lifelong income without knowing how long any individual member will live. The alternative, drawing down a personal balance, runs out if the member lives longer than the balance lasts, and leaves money unspent if the member dies early. The annuity removes both risks, at the cost of the member giving up the balance as a personal asset.

The payout is calculated from the premium, the member age at payout start, the plan chosen, and the interest and mortality assumptions the Board uses, which are reviewed periodically and published through the Board payout estimator. The calculation is an annuity calculation of the standard kind: the premium is converted into a monthly payment that, on the Board assumptions, exhausts the premium plus the interest it earns, over the expected payout period, with the pooling adjustment for members who live longer or shorter than expected. The Board estimator is the authoritative source for a personalised estimate, because it uses the member actual Retirement Account balance, the actual plan, and the current assumptions, and any figure in this guide is an illustration on the Board published example, not a personal estimate. The illustration figures below are the Board estimates for a male member who sets aside the stated sum at 55 and starts payouts at 65 on the Standard Plan, and they should be read with that framing attached.

The three plans, compared on the same balance

CPF LIFE offers three plans, and they differ in the shape of the payout over time. The Standard Plan pays a level monthly amount for life: the amount received in the first month is the same as the amount received in the twentieth year, in nominal terms, so its purchasing power falls with inflation. The Escalating Plan pays a lower starting amount, which rises by 2 percent a year, every year, for life, so that it starts below the Standard Plan and overtakes it after about a decade and a half, and keeps rising thereafter. The 2 percent is fixed, not linked to actual inflation, and it does not stop at any age. The Basic Plan pays a higher amount initially, combining a term component that runs down with a lifelong component, so that the payout falls after the term component is exhausted, to a lower amount that continues for life. The Basic Plan leaves a larger bequest, because more of the premium remains in the Retirement Account, and it pays less over a long life, because the lifelong component is smaller.

The plans do not differ in the total value the Board expects to pay over an average lifetime, in present-value terms, because they are priced from the same premium on the same mortality and interest assumptions. They differ in the timing of the payments, and timing is what makes the choice personal: a member who needs more income early, to clear a debt or to fund an active early retirement, values the Basic Plan shape; a member who fears inflation over a long retirement values the Escalating shape; and a member who wants the simplest, level income values the Standard shape. The choice is made between age 65 and 70, it can be changed before payouts start, and once payouts have started the plan cannot be changed, which is why the choice should be modelled on the Board estimator with the member actual balance, and discussed with family, before it is made. The payout figures in the next section give the scale of the differences, on the Board published example.

Worked payouts: the 2026 estimates, and what they assume

For a male member turning 55 in 2026, who sets aside the retirement sum at 55 and starts payouts at 65 on the Standard Plan, the Board estimates are about S$950 a month at the Basic Retirement Sum of S$110,200, about S$1,780 a month at the Full Retirement Sum of S$220,400, and about S$3,440 a month at the Enhanced Retirement Sum of S$440,800. The step from Basic to Full, an extra S$110,200 set aside, lifts the estimated payout by about S$830 a month, and the step from Full to Enhanced, a further S$220,400, lifts it by a further S$1,660 a month. The payout is roughly proportional to the sum set aside, with small differences from the pooling and interest assumptions, and the proportionality is a useful check: a balance halfway between two sums should give a payout roughly halfway between the two estimates, and a balance double the Full sum should give roughly double the Full payout, subject to the Enhanced cap on the amount that can be set aside for CPF LIFE purposes.

On the Escalating Plan, the same Full Retirement Sum gives a starting payout of about S$1,380 a month, roughly S$400 below the Standard Plan, rising 2 percent a year. At 75, ten years into payouts, the Escalating amount has risen to about S$1,680 a month, still below the Standard S$1,780. At 85, it has risen to about S$2,050, above the Standard. At 95, it is about S$2,500. The crossover, where the Escalating total paid catches up with the Standard total, comes later than the monthly crossover, because the early shortfall must be repaid, and the breakeven in cumulative terms is around the late 80s for the published example. A member who expects a long life, and who can manage on the lower starting amount, gains from Escalating. A member who needs the higher amount from the start, or who does not expect a long retirement, gains from Standard. The Basic Plan, on the Board illustration, pays a higher initial amount than Standard, then falls to a lower lifelong amount, with the fall occurring when the term component is exhausted, around age 90 in the illustration, and the lifelong amount thereafter is lower than both other plans.

The estimates assume the Board mortality and interest assumptions at the time of publication, a male member, payouts starting at 65, and the sum set aside at 55 with no further top-ups or withdrawals. Female members receive slightly lower monthly payouts on the same premium, because women live longer on average, and the same premium must stretch over a longer expected payout period. Members who set aside the sum later than 55, or who top up after 55, will have different balances at 65, because the balance earns interest in the Retirement Account at 4 percent a year, subject to the floor, and the payout will reflect the actual balance at the payout start age. The Board estimator, run with the actual balance and the actual start age, is the only figure that should be used for a personal decision, and the figures here are the scale on which that personal figure will sit, not a substitute for it.

Deferring to 70: what waiting buys

Payouts can start at any age from 65 to 70, and deferring increases the monthly amount by roughly 6 to 7 percent per year of deferral, or up to about 35 percent for a five-year deferral to 70. The increase has two sources: the Retirement Account balance keeps earning interest, at 4 percent, during the deferral, so the premium is larger, and the expected payout period is shorter, because payouts start later, so the same premium supports a larger monthly amount. On the Standard Plan illustration, a Full Retirement Sum payout of about S$1,780 at 65 becomes about S$1,900 at 66, about S$2,030 at 67, and about S$2,400 at 70, on the Board approximate deferral factors. The figures are approximate, because the Board applies its current assumptions at the time of deferral, and the exact increase should be read from the estimator.

Deferral is worth it only if the member does not need the income during the deferral years, and has other income or savings to live on. A member who defers and then needs to borrow, or to draw down other savings at a high cost, has traded a certain income for an uncertain one, and the trade is poor. A member who is still working, or who has a spouse income or other savings, and who can afford to wait, gains a permanently higher lifelong income, which is valuable insurance against living longer than expected. Deferral can also be partial in effect: a member can start payouts at 65 and still top up the Retirement Account, though the top-up after payouts start follows the rules the Board publishes, and the interaction should be checked on the estimator. The decision is about need, not about maximising the monthly figure in isolation, and the highest monthly figure is not the best outcome for a member who needs the money at 65.

What moves the payout: balance, age, and interest

Three factors move the payout, and they move it in predictable directions. The balance set aside is the largest: double the balance, roughly double the payout, subject to the Enhanced cap. The start age is the second: later start, higher payout, by roughly 6 to 7 percent per year, as above. The interest rate is the third, and it works through two channels: the interest earned on the Retirement Account balance before payouts start, which raises the premium, and the interest assumed in the annuity pricing, which affects the conversion of premium to monthly payment. The Board reviews the interest assumptions periodically, and a change in the assumed rate changes the estimates for new entrants, though payouts already started are not recalculated for interest changes alone. The mortality assumption is the fourth factor, reviewed as life expectancy changes, and longer life expectancy, all else equal, lowers the monthly payout for a given premium, because the same money must stretch further.

Top-ups are the practical lever most members control. A cash top-up to the Retirement Account, or to the Special Account before 55, attracts tax relief of up to S$8,000 a year for the member own top-up and a further S$8,000 for family members, within the overall S$80,000 personal relief cap, under the Retirement Sum Topping-Up Scheme, and it earns the 4 percent interest from the date of the top-up. A top-up made at 45 compounds for 20 years before payouts start, and its effect on the payout is therefore larger than the same top-up made at 64, which earns only a year of interest. The timing of top-ups matters as much as their size, and the habit of topping up early, within the relief limits, is the most reliable way to raise the eventual payout, more reliable than hoping for a higher interest assumption or a favourable mortality review, neither of which the member controls.

What happens to the money left over: the bequest

On the Standard and Escalating Plans, the bequest to the member nominees or estate is the premium paid, less the payouts already received, where the premium is the amount deducted from the Retirement Account for CPF LIFE. If a member dies after receiving payouts totalling less than the premium, the difference is paid as a bequest. If the member lives long enough that the payouts exceed the premium, there is no bequest from the CPF LIFE fund, because the extra payouts were funded by the pool, from the premiums of members who died earlier. That is the pooling bargain, stated plainly: the bequest is the unspent premium, not a guaranteed inheritance, and a long life consumes it. On the Basic Plan, more premium remains in the Retirement Account, because the plan is structured with a larger Retirement Account component, and the bequest is correspondingly larger, though the lifelong payout is lower. Members who value the bequest highly, for a spouse or for dependants, should weigh the Basic Plan, and should also consider whether the bequest is the best way to provide for those dependants, compared with insurance or with a higher payout that the spouse can save.

The Retirement Account balance remaining after the premium deduction is not part of the bequest calculation in the same way. It stays in the Retirement Account, earns interest, and can be withdrawn by the member under the withdrawal rules, or passes to the estate on death, subject to the nomination and the rules that apply. The distinction between the premium, which goes into the pool, and the remaining balance, which stays personal, is the key to understanding the bequest, and it should be confirmed on the Board statement, which shows the premium, the balance, and the payout separately. A member who does not understand the split will misunderstand both the payout and the bequest, and the statement is the document that settles it.

Choosing a plan, and changing the choice

Choose a plan by modelling all three on the Board estimator, with the actual Retirement Account balance, at the actual intended start age, and by asking three questions. First, how much income is needed from the start, and can the household manage on the Escalating starting amount for the first decade? Second, how long is a long life in this family, and how much does inflation protection matter over 25 or 30 years of payouts? Third, how important is the bequest, relative to the lifelong income, and who depends on it? The answers point to a plan, and the plan should be discussed with the spouse, because the payout supports the household, and the bequest, where it exists, goes to the family. The choice can be made any time from 65 to 70, and it can be changed before payouts start, so there is no need to rush it at 65, and there is value in modelling it at 64 with the actual balance, when the figures are real rather than projected.

Two warnings complete the guide. First, CPF LIFE payouts are one part of retirement income, alongside the Ordinary Account withdrawals, other savings, any pension or annuity, and family support, and the plan choice should be made for the whole income picture, not for CPF LIFE alone. A member with substantial other income may value the Escalating Plan inflation protection more, because the starting shortfall is covered elsewhere. A member whose CPF LIFE payout is the main income may need the Standard or Basic starting amount, because the shortfall cannot be covered. Second, no plan choice can be evaluated without the estimator figure for the actual balance, and this guide estimates, however carefully sourced, are illustrations on the Board published example for a male member at the Full Retirement Sum. Run the estimator, read the statement, and decide on the personal figure. The illustration shows the scale. The estimator shows the answer.

Frequently asked questions

How is a CPF LIFE payout calculated?

The payout is calculated from the premium deducted from the Retirement Account, the member age when payouts start, the plan chosen, and the CPF Board interest and mortality assumptions. The Board payout estimator gives a personalised figure from the actual balance. The published illustration for a male member setting aside the Full Retirement Sum at 55 and starting at 65 on the Standard Plan is about S$1,780 a month.

What are the CPF retirement sums for 2026?

For members turning 55 in 2026, the Basic Retirement Sum is S$110,200, the Full Retirement Sum is S$220,400, and the Enhanced Retirement Sum is S$440,800. The sums are set each year for the cohort turning 55 in that year, so figures for other cohort years differ.

What is the difference between the CPF LIFE Standard, Basic, and Escalating Plans?

The Standard Plan pays a level amount for life. The Escalating Plan starts lower, about S$400 a month below Standard at the Full sum, and rises 2 percent a year for life. The Basic Plan starts higher, then falls to a lower lifelong amount, and leaves a larger bequest. The plans are priced from the same premium, so they differ in timing, not in expected total value over an average lifetime.

How much does deferring CPF LIFE payouts to 70 increase the payout?

Deferring from 65 to 70 increases the monthly payout by roughly 6 to 7 percent per year of deferral, or up to about 35 percent for the full five years, because the balance keeps earning interest and the expected payout period shortens. The exact increase should be read from the CPF Board estimator for the actual balance.

What happens to my CPF LIFE money if I die early?

On the Standard and Escalating Plans, the bequest is the premium paid less the payouts already received. If payouts have already exceeded the premium, there is no bequest from the CPF LIFE fund, because the extra payouts were funded by the pool. The Basic Plan leaves a larger bequest, since more premium remains in the Retirement Account.

Can I choose or change my CPF LIFE plan?

The plan can be chosen any time between age 65 and 70, and changed before payouts start. Once payouts have started, the plan cannot be changed. If no choice is made, the Standard Plan applies by default, with payouts starting at 70.