Our CPF; not your CPF


One of the most current affairs stories today is “Our CPF”.  It’s about letting Singaporeans decide how much we need during our retirement. I think it is good we have a discussion here. Perhaps you know everything; but some of us have questions and comments.

If you have questions, do ask; and anyone can respond.  If you have comments, great.  Keep your response short, so we enjoy and understand you better. Please keep short your response to 1-3 paragraphs.  I have questions too.

In the case or we turning 55 in 2016, and the options are:

  1. Basic retirement sum (with property):  A monthly payout of $650 – 700 for life, for basic needs.
  2. Full retirement sum (without property): A monthly payout of $1,200 – 1,300 for life, for basic needs.
  3. Enhanced retirement sum $241,500:  A monthly payout of $1,750 – 1,900 for life, if we choose to put more in the retirement account.

If you wish to rate your thoughts and share it with fellow members, use the scale of 1-10 (10 is excellent), avoid using I dont like it or it is a good idea.

Please share your thoughts.

Terence Seah


11 thoughts on “Our CPF; not your CPF

  1. I recognise one of the proposed CPF recommendations is to top up to different retirement sums to allow for different monthly payouts. Does this affect CPF members who are over 55 in 2016?

    Even if you dont know, you can share with us what you know. Haha, I am a goat.

    Terence Seah

  2. At the rate CPF policies keep changing is ridiculous. If you put your money on a monthly basis in a bank (or any agencies for that matter) on the agreement that you could withdraw the full amount you’ve put in up till a certain age with some interest and nearing the date you are supposed to cash out, the bank tells you : “Sorry, we got to keep your money a little longer or, you’ve got to add in some money so that we can pay you more on a monthly basis or, …… whatever….” wouldn’t you flip?

  3. Cpf is our money How we want to do with our money is our choice Gov can give us options but they cannot impose restrictions like minimum sum in retirement and medisave By doing so has turn it into a form of tax to the people Gov should work out a comprehensive health insurance plus giving subsidies to the poor Instead they impose such a high sum in medisave, they are creating a very safe margin for themselves and not thinking whether most of the people can achieve these minimum sum Gov cannot make money from the people, it has to be transparent and all surplus return to us and not to use for other purposes. Moreover they do not guarantee your payout and only for as long as cpf is solvent. That means if cpf is bankrupt you all lose all your money

  4. What I understand…

    1. The new CPF changes are focused on, and affect the latest cohort of 55 year olds (in 2016) and the subsequent cohorts (55 years old in 2017, 2018, 2019, 2020).
    2. These younger cohorts’ MS* (at 55 years of age) will be used by CPF to pay premiums for annuities from CPF LIFE so that after 10 years, CPF LIFE can start paying out a monthly sum to the CPF members on their retirement, for life.
    3. The older cohorts (55years old before 2013) might not have chosen to be on CPF LIFE annuities. They had preferred to leave their MS/RA** with CPF and will draw, or are now drawing, a monthly payment from CPF till their RA is exhausted.
    4. The general advice to the younger generation is not to withdraw their CPF savings at age 55 unless there is an urgent need for funds. CPF still pays the highest interests on savings compared to banks, etc .

    *MS: Minimum Sum. ** RA: Retirement Account

  5. Hi Jassmine,

    I’ve always been curious to know which is a better deal – CPF Life or just leave the money in the RA as in your (3). Putting in RA gives you a 4% yearly interest plus a bonus of $600 p.a. if you do not draw out. I dont know, really but I’m too lazy to open a CPF annuity account.

    Any advice, pl?


  6. But of course one key difference is that CPF Life pays you until death, where RA only “pays” you until the amount is exhausted. So if your RA account dries up 10 years later and your are still alive, you will get nothing after that, where CPF Life will continue paying you until you are 100 years old!

  7. Hi Susan
    The older cohorts of CPF retirees had the option to sign up for CPF LIFE or to remain on CPF, but not the younger cohorts. They are automatically on CPF LIFE.
    CPF will pay out a fixed amount – almost double the payout from CPF LIFE – on draw-down date and this payout will last till the retiree is 80 years old (see Sunday Times 8/2). Because of these two reasons, many at that time chose not to opt for CPF LIFE but to let their MS/RA remain will CPF.

    Members who are not on CPF LIFE can sign up to be on CPF LIFE any time before they are 80 years old. Personally I don’t think anyone from the older cohorts would one to be on CPF LIFE if his/her MS is with CPF. CPF payout is so much better and it will last for quite a long time – till the retiree is 80…

    …and beyond 80 years, there is the goldmine house-owners are sitting on, and personal savings and gold bars…these are all waiting to be used when the annuity payout ends. ? Lol!

  8. I give up! There are so many changes to our CPF that it’ll take a long time to assimilate who gets how much and when.
    Please note that Medishield Life will be launched end of this year and ALL Singaporeans are covered. This is like a medical life insurance and what the benefits are, are yet to be clarified. What I do know is that there is no opt-out for this. Premiums will vary from age group to health status. Yes, even a Singaporean with a host of ailments will be covered BUT the premiums will be higher than one who is healthy.

    It sounds good on paper – respective of your health condition, you will be covered under Medishield Life. BUT, no such thing as FULL coverage as in having your hospital bills paid for hor. We still have to fork out cash. To sum it up, we pay monthly/annual premiums in advance for the big bill we might get one fine day from the hospital. After the claims, our premiums will be re-adjusted to guess what?….higher premiums lah. Just like car insurance claims.

    We can use our Medisave to pay for the Medishield Life premiums or pay cash.

    My grouse? If I did not hear it wrongly, the moment a child is born, he/she is covered under the Medishield Life. Piangz, a baby has to pay premiums? Okay, young infants can fall sick but remember, coverage is supposedly for major illnesses. Healthy children also have to pay premiums from their parents’ Medisave accounts or the parents have to pay cash.

    This is COMPULSORY and to me this sucks!


  9. I am thinking of designing a poll on this forum, re the latest CPF announcements, especially among us. Aiyah, I forgot how to do it. But nevermind, if you can help to design the poll questions, let’s say 5 questions, we will figure out how to do the poll.


    Terence Seah

  10. The CPF policies keep changing and it is indeed difficult to follow up and comprehend. Clearly any further policies changes are to justify retaining your CPF money.

    To know exactly which policies affecting you and the minimum sum you need to maintain depending on the year you turn 55 is to march down to CPF board and give them your date of birth. Tape or write down aht the officier tell you on what is your entitlement and plan your retirement life with what you can withdraw. Lucky are those who are not affected by the CPF Life and those who still had a choice not to choose it. On that I agreed with Rosalind that it is better stick to withdraw from your Retirement fund till it runs out.

    The sentiment in the public is that this panel after spending months only come up with superficial changes using new terminologies to continue to hold back your funds.
    One citizen mentioned if S$5,000 allowed to withdraw at 55 can really last to cover expenses till 65 when only then you are able to get your monthly payout.
    It is a joke.

  11. Aiyayah!

    The gahmen is only trying to please all Singaporeans… so give you a choice as to how much money you want to keep or withdraw from your CPF. Of course you cannot withdraw all… you want us to be brankrupt? Of course you cannot withdraw till you reach 63 or 65… depends on your age, lah!

    If you don’t have Minimum Sum then you must have CPF Life… so simple lah! What?… you expect us to pay for your retirement??

    Don’t confuse CPF with MediShield Life… For once I think that this could be the best policy… if it’s carried out properly. Taiwan and many other countries have implemented a comprehensive medical insurance scheme to cover all citizens from cradle to grave. The problem with Singaoore is that everything must address the bottom line … so, it is privatized… like, NTUC take over from cradle to grave. A MediShield Life program can be administered with lower costs still employing prudent actuarial and financing principles, without having to engage private insurers. But that’s only my personal view… which also extends to our world-class transport system and our vaunted hospital and medical services.

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