The Government has accepted and is working to implement these recommendations.
Find out what the recommendations mean for you.
Here’s what you can expect from the CPF Advisory Panel’s recommendations:
- More options to grow your savings
- New Lifetime Retirement Investment Scheme simplifies your investment decisions and helps you grow your retirement savings.
- More CPF LIFE payout options
- New CPF LIFE plan with escalating payouts helps you cope with the rising cost of living in your retirement years.
- More ways to get higher payouts for life
- Choose to start your payouts later, up to age 70, to receive higher payouts.
- Top up your CPF savings up to the Enhanced Retirement Sum.
- Top up your spouse’s CPF so that he or she can also receive monthly payouts for life.
- More flexibility to withdraw savings
- Withdraw up to 20% of your Retirement Account (RA) savings at payout eligibility age*.
* If you turn 55 from 2013 or later, you can withdraw up to 20% of your RA savings at 65.
Growing your retirement savings
Start growing your retirement nest egg early.
Transfer your savings
If you don’t need to use your Ordinary Account (OA) savings for housing or education, you can transfer some to your Special Account (SA) to earn higher interest. Your OA earns an interest of up to 3.5% while your SA earns up to 5%.
Invest your savings
NEW If you seek higher expected returns for your CPF savings with some investment risk, you can opt for the new Lifetime Retirement Investment Scheme (LRIS).
If you have the financial expertise and time, and prefer to manage your own investments, you can consider the existing CPF Investment Scheme (CPFIS).
Learn about the Lifetime Retirement Investment Scheme
- Members with more than $20,000 in OA and $40,000 in SA savings can choose to invest in LRIS.
- Simpler, well-diversified investment choices.
- Low fees enhance your expected returns. Your invested CPF savings will be pooled together with other members to achieve economies of scale.
- Your investments are passively managed – they simply follow a market index. This also keeps your cost of investing low.
- Long-term investing approach to achieve better returns in the long run.
The details on implementation will be announced later.
Find out more
Read Chapter 5 of the Panel’s report for more details on the Lifetime Retirement Investment Scheme.
Wei Lun's story
"I feel that the new Lifetime Retirement Investment Scheme is for me. It’s low-cost and simple, and I don’t have to worry about actively monitoring my investments."
"For investors who are not so savvy, I think a simple investment scheme that has low fees will be a good option."
Decide the retirement payouts you want.
If you are turning 55 in 2016, you can choose from a wider range of retirement sums, based on your desired payouts. The more you set aside at 55, the higher your monthly payouts will be when you reach your payout eligibility age.
At age 55:
set aside the retirement sum to get
your desired monthly payout
From age 65:
Start getting monthly payouts for life
Own a property* and want basic monthly payouts
| Basic Retirement Sum (BRS)**
Don’t own a property, or you want higher monthly payouts
|Full Retirement Sum (FRS)
Want even higher monthly payouts
|Enhanced Retirement Sum (ERS)
* A property charge/pledge does not affect ownership of the property. A charge is created when you withdraw savings from your Ordinary Account for a home purchase. A pledge is created when you make a cash withdrawal in excess of the BRS from your Retirement Account.
** For members turning 55 between 2016 and 2020, the Basic Retirement Sum will be increased by 3% from the cohort in the previous years.
If you have a spouse, top up your spouse’s CPF
You can also transfer your CPF savings to your spouse's CPF so that he or she can also receive monthly payouts for life. You can actually do this at any age as long as you have set aside the Basic Retirement Sum for yourself.
Reaching your Payout Eligibility Age at 65
One size does not fit all. Now you have more options for when and how to retire, based on your needs and means.
Defer your payouts
You can defer your payouts, up to age 70. If you choose this option, your payouts will be around 6% to 7% higher for each year deferred.
Withdraw a lump sum
If you have shorter-term cash needs, you can withdraw up to 20% of your Retirement Account Savings. This applies if you turned 55 from 2013 and includes the $5,000 that you were eligible to withdraw from age 55.
Get escalating payouts
New In future, you can opt for the new CPF LIFE plan with escalating payouts. Although you’ll start off with lower payouts than the CPF LIFE plan with level payouts (Standard or Basic), your payouts will increase by 2% every year. This will help you cope with rising costs of living in your retirement years.
Find out more
Read Chapter 4 of the Panel’s report for more details on the CPF LIFE plan with escalating payouts.
Madam Salamah’s story
"A CPF LIFE plan with payouts that will increase as I get older will be good. Such a plan will help me cope with increases in the cost of living during my retirement years."