Key Takeaways
CPF LIFE turns your Retirement Account savings into monthly payouts for as long as you live, protecting you against outliving your money.
For members turning 55 in 2027, the Basic, Full and Enhanced Retirement Sums are $114,100, $228,200 and $456,400, and your balance shapes your payouts.
The Supplementary Retirement Scheme (SRS) gives you tax relief on contributions of up to $15,300 a year, but its returns depend on how you invest.
Private annuities and retirement endowment plans can supplement CPF, but most pay out for a fixed period and carry distribution costs and surrender penalties.
Whole life plans can add to your retirement savings through their cash value, but they’re built for protection first. Reach out to our MoneySmart financial advisors to compare life insurance plans in Singapore for more cash value and payout options.
Retirement savings plans in Singapore are the schemes and financial products that turn your working-life savings into income once you stop working. They fall into two groups: the Central Provident Fund (CPF) and its CPF LIFE annuity (a plan that pays you a monthly income for life), and voluntary options such as the Supplementary Retirement Scheme (SRS) and private retirement plans from insurers.
Knowing how these pieces fit together helps you decide how much to rely on CPF and where extra savings could fill the gap. This guide explains how each scheme works, the CPF rules through 2027, and what to weigh before adding a private plan.
Key Retirement Savings Schemes in Singapore
Navigating retirement savings in Singapore can feel overwhelming with all the acronyms and product choices. Here’s what you need to know to make sense of the local landscape, even if you’re brand new to it.
Scheme | What it is | Who can join | Payouts and guarantees | Tax treatment |
|---|
CPF Retirement Account (RA) | Account created at 55 to hold your retirement savings | Singapore Citizens and PRs (compulsory for employees) | Funds your CPF LIFE premium, with limited withdrawals from 55 and 65
✅ Government-guaranteed interest | Tax-free interest earned |
CPF LIFE | National annuity funded by your RA savings | Automatic for Singapore Citizens and PRs born in 1958 or later, with at least $60,000 in retirement savings | ✅ Government-backed monthly payouts for life, starting any time from 65 to 70 | Tax-free payouts |
SRS | Voluntary savings account opened with DBS, OCBC or UOB | Singapore Citizens, PRs and foreigners aged 18 and above | Withdraw from the statutory retirement age (64 today), with a 5% penalty for early withdrawals
❌ No guaranteed returns | Contributions get tax relief; 50% of withdrawals at retirement are taxable |
Private annuities and retirement endowments | Insurance plans that pay income for a fixed period or for life | Varies by insurer and plan | Regular income for a set period or for life, or a lump sum at maturity
Mix of guaranteed and non-guaranteed returns | No life insurance tax relief on premiums paid |
The biggest difference is longevity protection. CPF LIFE keeps paying however long you live, while most private retirement income plans stop after a set period. Because CPF is compulsory, SRS and private plans are the parts you control directly.
SRS works differently from CPF because you manage it yourself. You can hold only one SRS account, and contributions made by 31 December count towards your tax relief for the following Year of Assessment. Uninvested SRS cash earns only a nominal rate of about 0.05% a year, so you'll usually want to invest it in stocks, exchange-traded funds (ETFs), bonds or insurance plans for it to grow.
How Do CPF LIFE and Retirement Account Work?
When you turn 55, CPF opens your Retirement Account (RA) and moves your Special Account (SA) savings, then your Ordinary Account (OA) savings, into it, up to your Full Retirement Sum. From your payout eligibility age of 65, those savings pay the premium for CPF LIFE.
Think of it as risk pooling: the interest on everyone's premiums is pooled, so members who live longer keep receiving payouts after their own savings are used up.
Choosing a CPF LIFE plan
CPF LIFE offers three plans, which differ in how your payouts change over time:
Plan | How payouts work | Good to know |
|---|
Standard Plan | Level monthly amount for life | Default plan if you don't choose one |
Escalating Plan | Starts lower than the Standard Plan, then rises 2% every year | Helps your income keep pace with rising prices |
Basic Plan | About 10%–20% of your RA savings goes into the premium; paid from your RA until 90, then from the premium | Payouts get progressively lower once your combined CPF balances fall below $60,000, as you earn less extra interest; can leave a larger bequest (the amount passed on to your beneficiaries) if you pass away early |
MoneySmart Tip
Each year you defer payouts beyond 65 raises them by up to 7%, or up to 35% (if you wait until 70), when payouts begin automatically.
Retirement sums from 2025 to 2027
Your retirement sum is fixed in the year you turn 55, and sets how much goes into your RA:
Year you turn 55 | Basic Retirement Sum (BRS) | Full Retirement Sum (FRS) | Enhanced Retirement Sum (ERS) |
|---|
2025 | $106,500 | $213,000 | $426,000 |
2026 | $110,200 | $220,400 | $440,800 |
2027 | $114,100 | $228,200 | $456,400 |
Source: CPF Board and the Ministry of Manpower's Budget 2022 factsheet. The government raised the BRS by about 3.5% a year for members turning 55 from 2023 to 2027, rounded to the nearest $100, and set the FRS and ERS as multiples of the BRS.
BRS: Covers basic retirement needs. If you own a property with a lease lasting until at least age 95, you can pledge it for up to half of your FRS and set aside only the BRS in cash.
FRS: Twice the BRS, and the amount CPF transfers into your RA if you have enough savings.
ERS: Four times the BRS since 2025 (up from three times), and the cap on voluntary top-ups for higher payouts.
How much you can withdraw depends on these sums and your age:
When | What you can withdraw | Good to know |
|---|
From 55 | $5,000, or everything above your FRS if you have more | With a property pledge, you can withdraw everything above your BRS instead |
From 65 | Up to 20% of your RA savings as a lump sum, if you turned 65 in 2023 or later | Includes the $5,000 from 55; excludes cash top-ups, CPF transfers and government grants |
On medical grounds | Some or all of your savings, at any age | A doctor must certify a severely reduced life expectancy, permanent unfitness for work or permanent lack of mental capacity |
Leaving Singapore for good | All of your savings | Only after you give up your Singapore citizenship or PR |
When you pass away | Your remaining CPF savings plus any unused CPF LIFE premium, paid to your nominees | Unused premium = premium paid minus payouts received |
Note: The FRS (or BRS, if you've pledged a property) isn't a withdrawal limit. It's the amount CPF keeps in your RA to fund your CPF LIFE payouts, so only what you have beyond in your CPF can be taken out as cash.
For example, if you turn 55 in 2026 with $300,000 in CPF, you could withdraw the $79,600 above the $220,400 FRS. And if you paid a $200,000 CPF LIFE premium and received $67,200 in payouts before passing away, your nominees would get the remaining $132,800.
Recent CPF changes to know
December 2026: Budget 2026 provides a one-off, means-tested CPF top-up of up to $1,500 for Singaporeans aged 50 and above in 2026 with lower CPF balances.
January 2027: CPF contribution rates rise by 1.5% for employees aged above 55 to 60, and by 1% for those above 60 to 65. The increase goes into the RA, up to the FRS.
Topping Up CPF LIFE? Get a Second Opinion
Too many brochures, too little time? Compare endowment plans and speak to MoneySmart’s financial advisors for a no-pressure chat on your retirement savings and plans.
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How to Choose a Retirement Savings Plan in Singapore
With CPF LIFE as your base, the real question is whether to add to it, and how. Weigh these factors:
1. Find your income gap
Estimate your monthly spending in retirement and compare it with your projected CPF LIFE payout. The shortfall is the extra income you need to plan for.
2. Set aside an emergency fund
CPF, SRS and private plans all lock your money away, and private plans penalise early surrender. Keep a buffer in a savings account you can access anytime before committing to any of them.
3. Top up your CPF first
Cash top-ups to your RA, up to the ERS, raise your CPF LIFE payouts. This matters most if you're self-employed or a gig worker, since you don't receive employer CPF contributions.
4. Add SRS if your tax bracket is high
Each dollar you contribute, up to $15,300 a year for Singapore Citizens and PRs, cuts your taxable income. You can later spread withdrawals over up to 10 years to keep the tax low.
5. Consider a private plan last
Add one only if a gap remains after fees. If you have dependants, check whether it offers riders (optional add-ons) for critical illness or disability, and learn how life insurance can protect your family alongside it.
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