CPF LIFE Explained
CPF LIFE pays a monthly income for life — the question is which payout shape suits you. (CPF Board.)
CPF LIFE is a national annuity. From your Retirement Account, it pays a monthly income for as long as you live — so you cannot outlive it. You choose one of three plans, which differ in how the payout behaves over time and how much is left behind as a bequest.
The Standard Plan pays a level monthly amount — steady and predictable, with a smaller bequest, and is the default. The Escalating Plan starts about 20% lower but rises 2% a year for life, helping your income keep pace with rising prices. The Basic Plan starts lower and can decline once your balances fall, but leaves the largest bequest.
Which fits depends on your priorities: predictability, protection against inflation, or leaving more to loved ones. There is no universally best plan — only the one that matches your needs.
Illustrative example: three payout shapes
The chart contrasts the three plans — level, rising, and lower-with-a-bigger-bequest. Your actual payout depends on your Retirement Account balance and the plan you pick.
Plan features are as published by the CPF Board for 2026 and can change — confirm current details and payout estimates at cpf.gov.sg.
Educational only — not financial, tax, or investment advice, or a recommendation to take any particular course of action. Any names, figures, and examples illustrate a principle and are historical or simplified; past performance is not a reliable indicator of future results. Rules, tax treatment, and published figures change over time and may not reflect current policy. Wealth Diagnostics provides education and tools for financial advisers and their clients — seek licensed advice for your own circumstances before making any financial decision.