By The Ledger desk · Last verified 4 October 2026
CPF LIFE is the national annuity that turns your Retirement Account savings into a monthly payout for as long as you live. Singapore Citizens and PRs born in 1958 or later with at least S$60,000 in retirement savings when payouts begin are included automatically. Payouts can start any time from 65 to 70, and each year you defer raises them by up to 7%. You pick one of three plans: Standard (level payouts, the default), Escalating (starts about 20% lower, then rises 2% a year for life) or Basic (lower payouts, a larger bequest for longer). For someone turning 55 in 2026 with the Full Retirement Sum of S$220,400, CPF estimates Standard Plan payouts of about S$1,640 to S$1,750 a month from 65.
It is one of the few products anywhere that promises an income you cannot outlive. The choice of plan is yours, and it is worth ten calm minutes.
Quick facts
- Payout eligibility age: 65. Latest start: 70, when payouts begin automatically if you have not chosen.
- Deferring adds up to 7% a year, so up to about 35% more if you start at 70.
- No plan chosen by 70? You are placed on the Standard Plan.
- CPF writes to you about three months before you turn 65; you choose through the “Plan my monthly payouts” e-service.
- 2026 retirement sums: BRS S$110,200, FRS S$220,400, ERS S$440,800.
- Any unused premium and remaining CPF savings go to your nominees or estate when you die.
Standard, Escalating or Basic: what is the difference?
| Plan | Monthly payout | Premium taken from your RA | Bequest |
|---|---|---|---|
| Standard | Higher, level for life | All RA savings, when payouts start | Lower than Basic |
| Escalating | About 20% lower at first, then up 2% every year | All RA savings, when payouts start | Lower than Basic |
| Basic | Lowest, and may fall once your RA balance drops below S$60,000 | About 10% to 20% of RA savings | Higher, up to about age 90 |
Under the Basic Plan, most of your money stays in your Retirement Account and pays you until one month before 90, after which the premium takes over. That is why its bequest is larger in the early years and its payouts are smaller. Under all plans, once your own premium is used up, payouts continue from pooled interest, however long you live.
How much will you get?
CPF’s estimates for members turning 55 in 2026, on the Standard Plan, are below. Actual figures depend on your balance when payouts start, interest and your plan.
| Retirement Account at 55 (2026) | Estimated monthly payout from 65 | Estimated monthly payout from 70 |
|---|---|---|
| BRS, S$110,200 | S$890 to S$930 | S$1,170 to S$1,270 |
| FRS, S$220,400 | S$1,640 to S$1,750 | S$2,190 to S$2,370 |
| ERS, S$440,800 | S$3,180 to S$3,410 | S$4,200 to S$4,550 |
Worked example (illustrative). Suppose your Standard Plan payout would be S$1,700 a month from 65. The Escalating Plan would start about 20% lower, at roughly S$1,360. After 10 yearly increases of 2%, at 75, it reaches about S$1,658 (S$1,360 × 1.0210). After 12 increases, at 77, it is about S$1,725 and has overtaken the Standard Plan for good. If you expect a long life and worry about prices rising, Escalating suits you; if you want the most money in your late 60s and early 70s, Standard does.
When should you start your payouts?
- Watch for CPF’s letter about three months before your 65th birthday.
- Use CPF’s payout estimator to compare start ages and plans with your actual balance.
- If you are still working or have other income, consider deferring: each year can add up to 7%.
- If you need the money from 65, or have health concerns, starting earlier is a perfectly sensible choice.
- Submit your choice through “Plan my monthly payouts” on the CPF website. Do nothing, and payouts start at 70 on the Standard Plan.
Members who are not automatically included, such as those with less than S$60,000, can still join CPF LIFE any time from 65 until one month before turning 80. Otherwise they receive payouts under the older Retirement Sum Scheme, which pays until the balance runs out.
The WahLiao Verdict
For most people the real decisions are not between plans but about how much is in your Retirement Account at 55 and when you start. If you can afford to wait, deferring is one of the best guaranteed returns you will find. Pick Escalating if you are healthy and want protection against inflation in your 80s; pick Standard if you want more income in your early retirement years; pick Basic only if leaving a larger sum in the first two decades matters more to you than monthly income. Whatever you choose, make the choice yourself rather than letting age 70 make it for you.
Questions people ask
Do I lose my money if I die early?
No. Any unused CPF LIFE premium, plus your other remaining CPF savings, goes to your nominees or estate. Only the pooled interest stays in the scheme.
Can I start payouts before 65?
Not for CPF LIFE. The payout eligibility age is 65 for members born in 1954 or later. You may still withdraw some savings from 55, as explained in our guide to withdrawing your CPF at 55 and 65.
Can I increase my payouts?
Yes, by topping up your Retirement Account (up to the prevailing ERS) before payouts start, or by deferring. Cash top-ups may also earn tax relief, within the limits set by IRAS.
Is CPF LIFE taxable?
No. CPF LIFE payouts are not subject to income tax, unlike SRS withdrawals, of which half is taxable.
Sources: CPF Board, CPF LIFE overview and plans; CPF Board, how CPF LIFE premiums work; CPF Board, when payouts start and when to choose a plan; DBS, 2026 retirement sums and payout estimates. The Ledger explains; it does not advise.
Read next: CPF Accounts Explained · The Supplementary Retirement Scheme (SRS) · Silver Support and the Majulah Package · Back to The Ledger
For what’s worth it this week, with the bill shown, read The WahLiao Week.
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