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CPF Life – How much are you getting? How much do you need?

CPF Life and in general, CPF is just one big confusing thing. Even the minister agrees.

CPF Life is actually an annuity that provides payout for life, which in our opinion makes it one of the best, if not the best annuity around.

By the age of 65, one will need to apply to CPF to start your payouts.

By default, everyone would be enrolled in CPF Life, UNLESS

  1. You are born before 1958.
  2. You have less than $60,000 in your Retirement Account when you are 64 years and 6 months old or young.

If you fall in the above category, you will need to apply to be included in CPF Life. To find out more information, please click here and scroll down to “How do I apply to Join CPF Life?“.

Or scan this QR Code.

CPF Life QR Code

Payouts and Retirement Sum

One of the questions many have is how much money will one receive if they enroll in CPF Life, well, CPF has provided a very useful tool to estimate the amount that one will receive every month. Do take note that it is only an estimator.

Click here to play with the estimator.

CPF Life Calculator

Once you are in, there are 2 options for you.

  1. How much you will receive every month.
  2. How much you need to receive a fixed amount every month.

The first option is pretty straightforward, whereas the second option is to reverse engineer the retirement sum needed if you would like to set a fixed amount.

Retirement and Financial Freedom

CPF is only one cornerstone of your retirement. If anything goes wrong, Singaporean have CPF payouts to rely on. Nonetheless, CPF, with its stringent requirements do not offer full flexibility which is why CPF is and should only be one cornerstone of your retirement and finances.

Financial Freedom should be built on the combination of Active Income and Passive Income, to know about the different types of income, click here.

To find out the amount of money that you need to achieve financial freedom, click here.

And lastly,

 

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