CPF Account Value Thread 2026

[BBCWatcher]

Fixed deposit rate too low.
It is better make a voluntary Housing refund, to earn 2.5%?

The interest rate on CPF OA savings is currently higher, but what are you trying to accomplish? To pay for a wedding 18 months from now? To support a 30+ year retirement starting 12 years from now? What are these dollars supposed to buy, and when?

And what are your other dollars doing? Do you have all of your savings in Singapore dollars, in predictably low yielding vehicles?

You means CPF Life can choose the plan between age 55 to 65 years old ?

No, I wrote what I wrote: you choose your CPF LIFE payout plan shortly before you start payouts. You cannot choose a payout plan until you're nearly age 65. And you're not even required to start your payouts at age 65. (The default is age 70, and in that case you'd make your plan selection at age 69, a couple months before your 70th birthday.)

Why the rush to choose a payout plan? Isn't it great that you can make a payout plan decision when you have more information about your future circumstances and objectives?

Let say I start to choose payout at 65years, These 10 years, the interest go to to pool and cannot take out, correct ?

Not correct. During at least this period RA interest, including bonus interest, is credited to your RA every December 31 (visible by very early January). Also, you usually have the option to withdraw up to 20% of your RA just before payouts start. Of course reducing your RA also reduces your monthly CPF LIFE payout amount.

What happen if the person pass on before the CPF Life started pay out?

That deceased person's entire CPF savings, including their entire RA balance, is paid to their CPF nominee(s).

 

[thinline]

Now I have clearer picture.
• At 55 years old, money remains in RA and earn interest
• At 65 to 70 years, need to choose CPF Life Plan. Once start payout, interest earn in the premium goes to the pool to help CPF Life members payout. If pass on at 75, unused money return to beneficiaries, however interest earn after payout start cannot be returned.
Correct?

 

[BBCWatcher]

Now I have clearer picture.
• At 55 years old, money remains in RA and earn interest
• At 65 to 70 years, need to choose CPF Life Plan. Once start payout, interest earn in the premium goes to the pool to help CPF Life members payout.

Including your monthly payout. All CPF LIFE payouts are computed interest inclusive.

If pass on at 75, unused money return to beneficiaries, however interest earn after payout start cannot be returned.
Correct?

No, not as you've written it. I think for example if you die at 75 (and previously chose the CPF LIFE Basic Plan) you and your CPF nominee(s) would get total payouts somewhere above your CPF RA balance just prior to CPF LIFE entry.

Relatedly, if you're in poor health in your late 60s (i.e. you have a rational basis to predict you'll die rather early), you don't particularly need the monthly payouts, and you have at least one CPF nominee that you care about, you might end up choosing the Basic Plan to try to maximize the amount you and your nominee(s) extract out of CPF LIFE. But you wouldn't/shouldn't make a payout plan decision before you need to. For example, if you have only one CPF nominee you care about, and that nominee surprises you and dies much sooner than you expect, you should not choose the Basic Plan.

 

[royalmix]

https://forums.hardwarezone.com.sg/threads/cpf-life-standard-plan.7220258/

Just drawing attention to this thread that is in edmw.

Someone happily posted and reposted his "article" on Basic Plan in that thread. I was wondering why he never notice the misinformation in it. By chance, I found a writeup at CPFB website:

https://www.cpf.gov.sg/service/article/how-does-the-cpf-life-basic-plan-work

Now I know why, he copied from this website page. Why CPFB website can still contain misinformation for so many years?

To me, is a glaring misinformation: extra interest information is incorrect. Below is extracts from the webpage mentioned above:

"Your RA savings that are first used for your monthly payouts will continue to earn 4% interest, with an extra interest of up to 2% earned on the first $60,000 of your CPF balances (across all your CPF accounts)."

Moral of the Story: always do your own due diligence!

 

[ZinY]

...
To me, is a glaring misinformation: extra interest information is incorrect. Below is extracts from the webpage mentioned above:
"Your RA savings that are first used for your monthly payouts will continue to earn 4% interest, with an extra interest of up to 2% earned on the first $60,000 of your CPF balances (across all your CPF accounts)."

Please enlighten me why extra interest information is incorrect.
I think, CPFB information is very confusing.
- RA savings are first used for your monthly payouts.
- (Remaining) RA savings will continue to earn 4% interest (or more if OA+MA < 60K)?

 

[BBCWatcher]

- (Remaining) RA savings will continue to earn 4% interest (or more if OA+MA < 60K)?

I’m not sure what you mean with your parenthetical. See here for details on bonus interest computations and crediting.

 

[royalmix]

Please enlighten me why extra interest information is incorrect.
I think, CPFB information is very confusing.
- RA savings are first used for your monthly payouts.
- (Remaining) RA savings will continue to earn 4% interest (or more if OA+MA < 60K)?

If you are above 55:

If you are 55 years old and above, you will earn an extra interest of 2% per annum on the first $30,000 and 1% per annum on the next $30,000 of your combined CPF balances (capped at $20,000 for OA).

How is my combined CPF balance computed?

Your accounts are used to compute your combined CPF balances in the following order:

- 1st: Retirement Account (RA), including any CPF LIFE premium balance = so long this is above 60k, you get 3%x30k = $900 per year credited to your RA if you are under the CPF Life Basic Plan. You can ignore the rest of the balances below until RA+CPF Life premium balance drops below 60k.

- 2nd: OA, with a cap of $20,000*
- 3rd: Special Account (SA) - closed
- 4th: MediSave Account (MA)

(Words in red are extracted from CPFB website. Words in black are my explanations).

 

[Andrew833]

If you are above 55:

If you are 55 years old and above, you will earn an extra interest of 2% per annum on the first $30,000 and 1% per annum on the next $30,000 of your combined CPF balances (capped at $20,000 for OA).

How is my combined CPF balance computed?

Your accounts are used to compute your combined CPF balances in the following order:

- 1st: Retirement Account (RA), including any CPF LIFE premium balance = so long this is above 60k, you get 3%x30k = $900 per year credited to your RA if you are under the CPF Life Basic Plan. You can ignore the rest of the balances below until RA+CPF Life premium balance drops below 60k.

- 2nd: OA, with a cap of $20,000*
- 3rd: Special Account (SA) - closed
- 4th: MediSave Account (MA)

(Words in red are extracted from CPFB website. Words in black are my explanations).

CPF website didn't state clearly, so end up many guessing.

If you are 55 years old and above, you will earn an extra interest of 2% per annum on the first $30,000 and 1% per annum on the next $30,000 of your combined CPF balances (capped at $20,000 for OA).

1st 2% is for RA and OA
2nd 1% is for SA and MA (not stated in the website but stated in income blog)
SA closed, so 1% goes to MA.

 

[RedsYWNA]

Perhaps for this new 'Quality of Life' national bonus for ministers, CPF retirement adequacy should be considered, along with measures for health and housing.

 

[royalmix]

Perhaps for this new 'Quality of Life' national bonus for ministers, CPF retirement adequacy should be considered, along with measures for health and housing.

Wrong thread, please take this discussion over to a ministerial salary or general news topic instead of derailing MoneyMind CPF Thread with political compensation debates. This is not EDMW.

 

[ZinY]

... See here for details on bonus interest computations and crediting.

If you are above 55:
...

I am above 65 and withdrawing monthly CPFLife on Basic plan.
Please help me understand the followings -
The accrued interest from my CPFLife premium will always goes into the insurance pool, right?
For now, I am withdrawing from my own RA account balance, right?
I am not benefiting anything from the CPFLife annuity until my RA runs out. What am I paying for?

 

[limster]

I am not benefiting anything from the CPFLife annuity until my RA runs out. What am I paying for?

Insurance against the risk that you live longer than expected?

 

[wutawa]

I am above 65 and withdrawing monthly CPFLife on Basic plan.
...
I am not benefiting anything from the CPFLife annuity until my RA runs out. What am I paying for?

it is buying toto to collect part of your bet after 25 years.

 

[royalmix]

I am above 65 and withdrawing monthly CPFLife on Basic plan.
Please help me understand the followings -
The accrued interest from my CPFLife premium will always goes into the insurance pool, right?
For now, I am withdrawing from my own RA account balance, right?
I am not benefiting anything from the CPFLife annuity until my RA runs out. What am I paying for?

I’m curious - why did you choose the Basic Plan if you’re now wondering what exactly you’re paying for?

So which one is it?

1. Did you choose to switch to CPF LIFE from the old RSS, or
   
2. Did you actively opt for the CPF LIFE Basic Plan when you joined CPF LIFE at 65 this year?
   

Because if you actively chose Basic, I’m even more curious what made you choose it in the first place!

Edit: Note: above 65 can belong to one of the 3 different cohorts, I need to know which one.

 

[a4973]

I’m curious - why did you choose the Basic Plan if you’re now wondering what exactly you’re paying for?

So which one is it?

1. Did you choose to switch to CPF LIFE from the old RSS, or
   
2. Did you actively opt for the CPF LIFE Basic Plan when you joined CPF LIFE at 65 this year?
   

Because if you actively chose Basic, I’m even more curious what made you choose it in the first place!

Perhaps at the point of choosing plan and starting payout TS is aware of the mechanics of the Basic Plan now he is just philosophically asking "what am I paying for" as in if I don't make it to the age of drawing down from the Life Premium then I have paid for others?

 

[royalmix]

Perhaps at the point of choosing plan and starting payout TS is aware of the mechanics of the Basic Plan now he is just philosophically asking "what am I paying for" as in if I don't make it to the age of drawing down from the Life Premium then I have paid for others?

I was actually asking him those questions.

Let’s hear from the man himself — did he choose the Basic Plan at 65 knowing exactly how it works, or did he come into CPF LIFE from the old RSS?

Note: above 65 can belong to one of the 3 different cohorts, I need to know which one first.

 

[ZinY]

Perhaps at the point of choosing plan and starting payout TS is aware of the mechanics of the Basic Plan now he is just philosophically asking "what am I paying for" as in if I don't make it to the age of drawing down from the Life Premium then I have paid for others?

I was actually asking him those questions.

Let’s hear from the man himself — did he choose the Basic Plan at 65 knowing exactly how it works, or did he come into CPF LIFE from the old RSS?

Note: above 65 can belong to one of the 3 different cohorts, I need to know which one first.

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.

 

[royalmix]

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.

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.

 

[BBCWatcher]

As most Singaporeans know, the Standard Plan commits 100% of your RA to the premium pool right from the start.

"From the start" means when you start CPF LIFE payouts. The default payout starting age is 70.

When CPF LIFE originally started you chose your payout plan at age 55. But that rule was abolished many years ago.

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.

Yes, but since the Basic Plan's payout is permanently lower than the Standard Plan's you'll need to spend down any/all other savings at a faster rate if your retirement spending needs ever exceed your Basic Plan's payout amount. And even if the payout is sufficient to meet your needs today, the point when inflation erodes your Basic Plan payout to insufficiency arrives sooner than it does with the higher Standard Plan payout. Your heirs might or might not receive a higher CPF LIFE residual when you choose the Basic Plan, but they may also receive less of your remaining other savings for the twin lower payout and earlier inflation impact reasons.

"There's no free lunch."

Another complicating factor is that a higher payout for life means you're freer, earlier, to give away more of your savings than when you have a lower payout for life. So if you want greater freedom to make bigger lifetime gifts sooner, another payout plan probably works better. Said another way, a lower payout means you're assuming more longevity risk than when you have a higher payout, and you need to retain more savings to insure against that greater longevity risk.

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.

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.

 

[ciscube1]

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