CPF Life

CPF Life

The Sunday Times published a front page article on Singapore's CPF Life payout today on 3 January 2010.

Singapore Savings Account Rates read that article and extracted some nuggets on CPF Life scheme and CPF Life payout data.

For those not in the loop, CPF Life is an annuity scheme. CPF Life is the acronym for Central Provident Fund Lifelong Income Scheme For The Elderly. You can read more about it in our earlier CPF Life post here.

In the newspaper article, the actual CPF Life account payout rates were not released. Only CPF Life payout sums were mentioned. The monthly CPF Life payout amount depends on factors like CPF Life account balance, gender, age, plan chosen.

37,000 members have opted for the CPF Life scheme, putting in SGD $1.5 billion. Highest CPF Life payout amount is $1040 a month.

72 per cent of those who signed up for CPF Life qualified for the L-Bonus and 74% qualified for the V-Bonus.

The CPF Life L-Bonus of up to $4000 is given to the first five cohorts who sign up for CPF Life. The L-Bonus amount depends on member's income level and annual home value.

The CPF Life V-Bonus of up to $1800 is given to members who voluntarily defer drawing down their minimum sum.

Government will be giving out $80 million in L-Bonus and V-Bonus in this CPF Life scheme.


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The Team
Singapore Savings Account Rates.

CPF LIFE Roadshows | Talks

CPF LIFE Roadshows | Talks

Have you wondered what is the CPF LIFE scheme? Is it a scheme for you to invest money, an insurance plan to protect your life or a savings account for life using CPF investment funds?

Have questions about CPF LIFE? Get more information about CPF LIFE during the CPF LIFE roadshows and talks in the coming weeks of September, October and November 2009.

CPF LIFE Roadshows, Talks, Event details:

Name of Event | Venue | Date | Day | Time

CPF LIFE event: CPF LIFE Talk
DBS Building Tower 1, DBS Auditorium, Level 3
30/09/2009 Wednesday 6:15 pm to 8:30 pm

CPF LIFE event: Active Ageing Roadshow 2009
Open Field beside Tampines Mall
10/10/2009 Saturday 10:30 am to 6:30 pm

CPF LIFE event: Central Singapore on the Move
Queenstown Stadium
18/10/2009 Sunday 7:30 am to 10:30 am

CPF LIFE event: Active Ageing Festival
Republic Polytechnic Centre
25/10/2009 Sunday 8:00 am to 11:00 am

Roadshow at Nee Soon East
Nee Soon Courtyard
14/11/2009 Saturday 7:30 pm to 10:30 pm

CPF officers will be there to help you understand CPF LIFE better.

Want to know what are the payout rates of CPF LIFE? Check out our earlier article in Singapore Savings Account Rates now.

Thanks for reading Singapore Savings Account Rates.

The Team
Singapore Savings Account Rates.

CPF LIFE Payout Rates

CPF LIFE Payout Rates

What is CPF LIFE? Is it an insurance scheme, a financial investment scheme, a savings deposit scheme or what?

CPF LIFE is the acronym for CPF Lifelong Income Scheme For The Elderly. It is a scheme that will provide monthly payout starting from your Draw Down Age (DDA), for as long as you live.

This CPF LIFE scheme was started because the current Minimum Sum Scheme is estimated to last for about 20 years, a period shorter than the expected life expectancy of many CPF account holders.

With the CPF LIFE Scheme, it is expected to help stretch CPF members savings to last through a longer period of retirement.

Details of CPF LIFE can be found at www.cpf.gov.sg and we will not go into details here.

Of interest to Singapore Savings Account Rates is: what will be the CPF LIFE payout rates?

CPF LIFE Payout Rates:

The CPF LIFE payout range used in the example as given in CPF LIFE brochure at the CPF website is based on CPF interest rates of between 3.75% and 4.25%.

These CPF LIFE Payout Rates do not represent the lower and upper limits of the payout.

The monthly payout may be adjusted every year to take into account factors such as CPF interest rate and mortality experience.

You can use the CPF LIFE Payout Estimator at www.cpf.gov.sg to find out how the monthly payout varies with different CPF Retirement Account (RA) balances.

How does this compare with the CPF Retirement Account rates?

As quoted from CPF site:
"From 1 January 2008, savings in the Special Account, Medisave Account and Retirement Account (SMRA) is pegged to the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1%. To help members adjust to the floating SMRA interest rate, a 4% floor for the SMRA rate will be maintained for the first three years (2008 - 2010).

In addition, an extra 1% of interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA. The extra interest from the OA will go into the member's Special or Retirement Account to improve his retirement savings.

Under the CPF Act, the Board pays interest at a minimum rate of 2.50% per annum. CPF interest is computed monthly and, compounded and credited annually."

Thanks for reading Singapore Savings Account Rates, where we bring you the latest and best Singapore savings account and CPF account rates.

The Team
Singapore Savings Account Rates.