CPF Account Value Thread 2026

[BBCWatcher]

Isn't this the same for the 3 plans? Beneficiaries will get the remaining money (total RA at payout - total payouts received while alive)

All payout plans guarantee payouts (to the member and to his/her nominees) that total to at least entry principal (your RA balance, plus accrued interest, just before payouts start). All payout plans also guarantee monthly income for life, however long it lasts.

The Basic Plan tries to cling to a larger residual longer compared to the Standard Plan — and that's just a natural consequence of a permanently lower monthly payout to the member for the rest of his/her life. None of the payout plans guarantee that your nominee(s) will receive any residual, and all payout plans feature residuals that decline to zero. The Basic Plan's residual takes longer to fall to zero, that's all.

 

[ZinY]

Ah, I understand why you chose Basic.

I was actually asking when you joined CPF LIFE, because the answer to your “what am I paying for?” question depends quite a bit on which cohort/rules you're under. That's why I asked when you joined.

I joined CPF Life in 2009 when it was launched. So, which cohort/rules I am under? Please enlighten me.
In fact, I now remember back that I was paying the premium and accrued interest for the assurance to get monthly payouts after age 90.

 

[ZinY]

...
Sure, you have 3 payout plan choices along with CPF RA funding level choices and starting payout age choices. And your spouse/partner has his/her own set of choices, too. YMMV.

Yes.
I think no plan is the best or the worst. Choose the most suitable one for oneself.

 

[BBCWatcher]

I joined CPF Life in 2009 when it was launched. So, which cohort/rules I am under?

Back in 2009 you had 4 payout plan choices, and one was the Basic Plan. You made your payout plan choice when you joined (which was how it worked back then). If you joined in 2009 you joined voluntarily since automatic enrollment only applies to members born after 1957. Presumably you also received attractive incentives to join — even more attractive now with the benefit of hindsight.

Today you probably have the one-time option to switch plans (to either the Standard Plan or Escalating Plan) if you wish. And/or you can add funds to your CPF Retirement Account if you wish, assuming you haven’t reached the current Enhanced Retirement Sum. Adding funds to an RA increases monthly payouts for life and also increases the residual paid to nominees (for ages when a residual remains). In some cases adding cash to your RA qualifies for either matching funds (added to your RA) or tax relief (if not to you, to the family member such as a child who tops up your RA).

 

[ZinY]

Back in 2009 you had 4 payout plan choices, and one was the Basic Plan. You made your payout plan choice when you joined (which was how it worked back then). If you joined in 2009 you joined voluntarily since automatic enrollment only applies to members born after 1957. Presumably you also received attractive incentives to join — even more attractive now with the benefit of hindsight.
....

Quite comprehensive info.
Thanks for refreshing my mind!

 

[royalmix]

I joined CPF Life in 2009 when it was launched. So, which cohort/rules I am under? Please enlighten me.
In fact, I now remember back that I was paying the premium and accrued interest for the assurance to get monthly payouts after age 90.

Wah, My guess is right: you chose to switch from RSS to CPF Life!

Congrats! You chose the best plan out of the 4 plans, most popular and still alive as a choice today, while the rest of the 3 plans had been phased out for new cohorts. The worst one is where both the 100% of premium + accrued interest will not be refunded, ie makan forever by the pool if the member uplorry earlier than expected.

This makes my answer to your question "what am I paying for" the longest! To avoid confusing others with rules that only affect you/your cohort, I will take it offline (pm). Give me more time to consolidate the detailed answers for you, now I need to complete my other tasks.

 

[Andrew833]

I chose the CPF LIFE Basic Plan years ago knowing exactly how it worked. It’s just that after all this time, I’m experiencing that classic Singaporean "Where is my money?" syndrome!
To be honest, I’ve always disliked buying insurance and prefer keeping my coverage to the minimum. While I wanted the guaranteed lifelong annuity payout that CPF LIFE offers, I didn’t want to pool 100% of my RA savings to share the mortality risk with everyone else.
As most Singaporeans know, the Standard Plan commits 100% of your RA to the premium pool right from the start. In contrast, the Basic Plan only takes an initial premium of about 15% to 20%.
While I know the Basic Plan yields lower monthly payouts than the Standard Plan, I think the amount is sufficient for my lifestyle. The biggest draw for me was capital preservation: if I pass away early, my remaining RA savings go entirely to my beneficiaries. I will only lose the accrued interest on the pooled premium.
In fact, choosing plans come down to personal priorities. I had made my decision and I am still confident it wasn't a mistake for me.

You are correct to choose Basic Plan for more bequest.
The other 2 plans are more for beating the pool and live longer than age 85.

 

[ZinY]

Wah, My guess is right: you chose to switch from RSS to CPF Life!

Congrats! You chose the best plan out of the 4 plans, most popular and still alive as a choice today, while the rest of the 3 plans had been phased out. The worst one is where both the 100% of premium + accrued interest will not be refunded, ie makan forever by the pool if the member uplorry earlier than expected.

This makes my answer to your question "what am I paying for" the longest! To avoid confusing others with rules that only affect you/your cohort, I will take it offline (pm). Give me more time to consolidate the detailed answers for you, now I need to complete my other tasks.

Take your time to pm me later. I will be looking forward to it. Thanks!

 

[BBCWatcher]

You chose the best plan out of the 4 plans, most popular and still alive as a choice today, while the rest of the 3 plans had been phased out.

The other 3 payout plans are closed to new enrollees. The Income Plan, at least, is still running for its enrollees.

The worst one is where both the 100% of premium + accrued interest will not be refunded, ie makan forever by the pool if the member uplorry earlier than expected.

No, there's nothing "worst" about the CPF LIFE Income Plan. The Income Plan offers the very highest level monthly payout, higher even than the Standard Plan. (The Escalating Plan initially starts at a lower payout but could end up with a substantially higher monthly payout.) The Income Plan was the very best choice for members trying to maximize their monthly lifetime retirement income who either didn't have any CPF nominees or who wanted to guarantee higher lifetime gifts and bequests from other assets. (See below.) For better or worse the Income Plan was closed to new enrollees since only about 4% of members selected it. The CPF Board needs a certain level of plan popularity to keep operating a plan. But the Income Plan was clearly the best available choice for some members in some circumstances.

You are correct to choose Basic Plan for more bequest.

All we can say is that the CPF LIFE Basic Plan maintains a higher residual for longer from CPF (only). Whether the Basic Plan ends up delivering a larger total bequest to heirs (and, better yet, lifetime gifts) is a very different question and depends on many other factors.

The other 2 plans are more for beating the pool and live longer than age 85.

No, not really, not only. If you know in advance (and with high confidence) how long you'll live, that's one thing. But most people don't. The CPF LIFE Escalating Plan, as a notable example, gives you the freedom to give away more money sooner. (Assuming the income stream level at least meets your basic needs — which can be arranged if you simply fund your RA "enough.") What's the recipient of this earlier money going to do with it? If the recipient puts it into a 0.05% interest bearing account and sits on it for decades, that's clearly not building dynastic wealth. If as another example the recipient invests your larger, earlier, guaranteed gift in high returning investments (which could even be a university degree), different story!

Earlier money is fundamentally much different than later money — especially when it's an uncertain and non-guaranteed delivery date on that later money, and it could even be zero. In some situations earlier money is infinitely more valuable. But it depends on what that earlier money is going to do.

You should never make CPF LIFE-related decisions in isolation. It's a powerful tool within an overall retirement financial strategy. Fully insure your longevity risk, and you have complete freedom to give away all your other assets in any amount at any time. What's that freedom worth? "It depends."