CPFB | Top up to enjoy higher retirement payouts (2024)

FAQs

CPFB | Top up to enjoy higher retirement payouts? ›

From age 55, you can choose to top up your Retirement Account up to the current Enhanced Retirement Sum (ERS) of $308,700 for higher payouts. As the ERS increases every January, you can make further top-ups every year for even higher payouts!

The ERS in 2025 will be $426,000. A member turning 55 years old in 2025 can receive about $3,330 per month of CPF LIFE payouts at age 65, if he chooses to top up to the raised ERS, up from about $2,530 today.

By topping up your CPF savings early (and regularly), you're ensuring that your retirement savings keep up with the pace of inflation. Use the CPF Planner to project how your CPF savings will grow over time. Learn how close you are to your goal, and how much more you may need to support your dream retirement.

Top up your CPF accounts to earn higher interest and enjoy up to S$16,000 in tax relief annually. Use cash instead of your OA to fund mortgage repayments. SRS contributions are eligible for tax relief and can be invested for potentially higher returns.

Full Retirement Sum: Gives you higher monthly payouts when you retire, can cover basic living expenses + rent. Enhanced Retirement Sum: Gives you even higher monthly payouts when you retire, can cover your desired lifestyle.

Get your CPF savings off to a running start by topping up earlier in the year! Earn more interest when you make cash top-ups in January. The beginning of a new year is often a good time to kickstart your financial plans for the year and beyond.

Payouts do not grow to protect you against inflation so you'll have to lower your lifestyle to buy less as things get more expensive in the years ahead. Payouts start higher than the Escalating Plan, but will eventually become lower than the Escalating Plan.

Members who want higher monthly payouts can set aside the Full Retirement Sum (“FRS”) or Enhanced Retirement Sum (“ERS”), which are currently set at two times the BRS and three times the BRS respectively. The BRS payouts will be increased for each cohort turning age 55 from 2023 to 2027, as shown in Table 1.

What happens to CPF after 65? ›

You have the flexibility to start receiving your monthly payouts anytime between 65 and 70. However, if you do not submit any instructions on your payouts by the time you turn 70, your monthly payouts will automatically start on your birthday month.

Generally, when you turn 55, you can withdraw at least $5,000 or any amount in excess after setting aside your Full Retirement Sum (FRS). If you are born in 1958 and after, when you turn 65, you can withdraw an additional amount of up to 20% of your retirement savings. See more details on the withdrawal rules.

Members can also choose to start their payouts from age 65 to 70, so those who want to defer payouts until 70 will continue to earn interest on their savings in the Retirement Account until then.

Additional tip: Perform your top-up at the beginning of the year. As CPF interest is calculated monthly, if you make a top up in January instead of December each year, you will earn 20% more in interest over 10 years.

You can earn up to 20% more interest in 10 years by making a cash top-up to your SA or RA in January as compared to December. This is because your CPF interest is calculated monthly!

When the ERS becomes $426,000 in 2025, you can also top up to this amount to enjoy the enhanced payout of $3,330. The increase of $117,300 from the ERS in 2024 is huge, but you can top up in stages with either CPF or cash.

Generally, when you turn 55, you can withdraw at least $5,000 or any amount in excess after setting aside your Full Retirement Sum (FRS). If you are born in 1958 and after, when you turn 65, you can withdraw an additional amount of up to 20% of your retirement savings. See more details on the withdrawal rules.

If you've only got a minute: Your CPF Retirement Account (RA) is created when you turn age 55. Your savings from your CPF Special Account (SA) and then Ordinary Account (OA) will be transferred to your RA up to the Full Retirement Sum (FRS) You can top-up your RA to the Enhanced Retirement Sum (ERS) from age 55.

Enhanced Retirement Plans gives organizations that offer benefits like 401(k) or 403(b) plans more flexibility to automate and enforce the relationship between employee- tiered matches and employee contribution limits across retirement plans. Flexibility to create employer-matched. contributions.