Everything You Need To Know About CPF Retirement Sum In Singapore

Are you worried about your retirement and your Central Provident Fund? Follow this article to learn more about CPF Retirement Sum and its eligibility criteria.

Will Retirement Payments Stop If CPF Retirement Account Runs Out Of Money
What Is The Minimum Sum For CPF Retirement Account

Having a sustainable retirement sum is the dream of every employee, which makes him work overtime or deal with different bosses for his monthly payouts.

While a CPF account can devour a significant part of your earnings, CPF savings can help you a lot when you retire, making it a valuable addition to your retirement income.

However, CPF Retirement Sum and its eligibility criteria can daunt employees as they have to meet certain conditions to withdraw their retirement income.

So what is CPF Retirement Sum?

What is the minimum sum for CPF Retirement Account?

Will retirement payments stop if CPF Retirement Account runs out of money?

If you are an employee who wants to set a strong foundation for retirement, understanding your CPF Retirement Sum will undoubtedly help you achieve life goals.

This article will help you understand the basics of CPF Retirement Sum and how you can work to build up your retirement savings.

What Your CPF Full Retirement Sum Might Look Like When YouGCOre 55

What Is CPF Retirement Sum?

When you join a work environment, you immediately start to earn or make transactions for retirement.

While you can choose among different schemes to reap contrasting benefits when you retire, the end goal is to tackle expenses during retirement.

However, also note that your current lifestyle, like basic expenses, also comes into play, especially when considering the Minimum Sum.

In short, you are contributing a dedicated sum from your current earnings to use for different payouts during retirement.

So how can you withdraw your CPF Retirement Sum?

After you attend the age of 55, you will receive a Retirement Account that will help you retrieve your CPF Retirement Sum.

Furthermore, the sum that you have accumulated in your Ordinary and CPF Special Accounts gets transferred to this Retirement Account to make it more convenient.

So how much funds can you expect from your CPF Retirement Sum?

Your CPF Retirement Sum depends on how much premium you pay to your CPF savings, which means a higher insurance premium will result in a higher payout.

For instance, there are three different types of premiums under CPF LIFE payouts – Enhanced Retirement Sum (ERS), Full Retirement Sum (FRS), and Basic Retirement Sum (BRS).

In short, you can get up to $288,000 if you opt for the Enhanced Retirement Sum.

Furthermore, you can withdraw hard cash from your CPF Retirement Account to fuel a property purchase.

However, you will have to leave the BRS or Basic Retirement Sum in your account.

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When Do We Start Saving For Future CPF Retirement Sum

What Is The Minimum Sum For CPF Retirement Account?

When you contribute to your retirement savings, your CPF Retirement Account calculates a Minimum Sum based on your Special and Ordinary accounts.

This Minimum Sum than progresses further as a future retirement sum where you will get monthly repayment payouts from age 65.

However, determining your retirement expectations in terms of financial requirements like mortgage repayment, basic household expenses, and currency value can be tricky.

For instance, the standard of living in your current lifestyle will differ in the future, when you might have to pay more for basic expenses.

Likewise, a decrease in currency value by the time you retire may also affect the Minimum Sum of your CPF Retirement Account.

In short, you will have to cope with inflation and consider the living standards in your future retirement plan.

Thankfully, you can use various ways to estimate your future payouts when you reach the age of 65.

What Your CPF Full Retirement Sum Might Look Like When YouGCOre 55

How Much Is The CPF Retirement Sum?

The Singapore government rolls out different plans and schemes for CPF account holders to reap more benefits when they retire.

For instance, according to the latest budget plans, the Singapore government raised the Basic Retirement Sum by 3.5%/year from 2023 to 2027.

This increase in the base interest rate will ensure that employees who retire during this period will get more out of their Basic Retirement Sum till 2027.

Here is a chart that will help you understand how much you can get from your BRS, FRS, and ERS if you retire between 2023 and 2027.



Basic Retirement Sum

Full Retirement Sum

Enhanced Retirement Sum


Current percentage





3.5% (increase from 2022)





3.5% (increase from 2023)





3.5% (increase from 2024)





3.5% (increase from 2025)





3.5% (increase from 2026)





The new plan also indicates a hike in the monthly payouts and other retirement sums, which will help employees manage their expenses after retirement.

Furthermore, employees who cannot set aside their BRS or Basic Retirement Sum can skip their CPF cash top-ups.

The move to increase CPF contribution rates will improve retirement adequacy, especially for senior employees, as they will be able to cope with the current and future living standards.

Here is another chart that will help you understand the estimated monthly payouts if you retire between 2023 and 2027.


Basic Retirement Sum (Monthly payouts)

Full Retirement Sum (Monthly payouts)

Enhanced Retirement Sum (Monthly Payouts)


























The Singapore government will continue to promote better schemes after the current plan ends in 2027, which will undoubtedly benefit employees when they retire.

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What If Retirement Sum Sits On CPF

What Your CPF Full Retirement Sum Might Look Like When You’re 55?

When you start working in Singapore, a part of your salary goes into your CPF or Central Provident Fund contributions (CPF Special/Retirement Account/MediSave Account).

These accounts have different purposes where you can utilize your CPF savings according to your needs.

For instance, you can use your Ordinary Account for mortgage repayments, insurance payments, or tuition fees for your family members.

Likewise, the MediSave Account fuels your medical treatments and insurance policies.

Although you can invest money in a CPF investment scheme using your Special Account, it would be best not to do so for two primary reasons.

For instance, if you currently have $50,000 in your CPF Special Account, you can only invest $10,000 as you have to maintain a minimum balance of $40,000 in your account.

Secondly, most investment schemes cannot guarantee long-term returns, while you can get a steady 4% interest per year with your CPF Special Account.

So what does your CPF Full Retirement Sum look like when you’re 55?

If you turn 55 in 2022, you will receive $192,000 as your Full Retirement Sum.

However, as the new CPF norms will come into effect from 2023, you will get higher FRS if you retire between 2023 and 2027.

You can refer to the table provided above to know the estimated Full Retirement Sum from 2023 to 2027.

What If Basic Retirement Sum CanGCOt Be Meet

How Much Can Be Withdrawn From CPF At Age 55?

According to a survey, 40% of 7,200 CPF members didn’t have any plans to withdraw money from their CPF account after they attained the age of 55.

However, financial requirements like medical expenses, personal needs, and other engagements may force you to withdraw money from your CPF account.

If you have turned 55 and have some urgent financial requirement, you can withdraw $5,000 or anything above the FRS or Full Retirement Sum.

Furthermore, you can withdraw your Retirement Account savings after leaving the BRS or Basic Retirement Sum.

However, you must own property to use this withdrawal method and also have to exclude any government grants, cash top-up amount, and interest earned on your CPF account.

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What If Retirement Sum Sits On CPF?

As mentioned earlier, if you do not disturb your CPF account and let your Retirement Sum sit as long as you can, you will likely get more monthly payouts.

For instance, if your desired monthly payout is around $1,000, you need to have at least $120,000 when you turn 55, which will further increase to $184,400 if you do not use your CPF funds till you turn 65.

In short, you can evaluate your desired monthly payout and avoid using your CPF savings to get the best results.

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Will Retirement Payments Stop If CPF Retirement Account Runs Out Of Money?

Although CPF savings can give you peace of mind during your retirement days, you could land into trouble if you do not opt for the CPF LIFE scheme.

CPF LIFE is a national insurance scheme that guarantees a desired monthly payout as long as you live.

You will be included in the program if you have $60,000 in your CPF retirement savings, were born in or after 1958, or are a Singapore permanent resident or citizen.

However, if you are not included automatically, you can join the scheme at any time by providing your contact details and other information before attaining the age of 80.

How Much Is The CPF Retirement Sum

Is CPF LIFE The Same As The Retirement Sum Scheme?

Although the CPF LIFE and Retirement Sum Scheme fulfill identical purposes, their fundamentals differ from each other.

Here are the key considerations you should make while opting for these schemes.


You can track and monitor the payouts received under the Retirement Sum Scheme as they come from our retirement account, whereas CPF LIFE does not procure payments from our retirement account.

In short, you receive your monthly payouts from the premiums you contribute to CPF LIFE.

Property purchase

Since the retirement sum resides in our Retirement Account, you can use it to purchase a property.

On the other hand, you cannot use your retirement sum once you contribute it to the CPF LIFE scheme.

Lifelong payouts

One of the primary differences between the CPF LIFE and Retirement Sum Scheme is that CPF LIFE guarantees lifelong payouts.

On the other hand, the Retirement Sum Scheme will only last as long as you have funds in your retirement account.

However, you can use the CPF Retirement Sum Topping-Up Scheme to get additional benefits like CPF cash top-up relief and cash top-ups or CPF transfers to enhance the Retirement Sum Scheme.

What If Basic Retirement Sum Can’t Be Meet?

If you are unable to meet the Basic Retirement Sum, you can still receive monthly payouts after you reach the age of 65.

Furthermore, you can withdraw $5,000 after you turn 55 and continue with other benefits after you retire.

When Do We Start Saving For Future CPF Retirement Sum?

While everyone must think of their retirement plans as soon as they start working, you can join a retirement scheme according to your needs.

Retirement plans like the Retirement Sum Scheme and CPF LIFE will help you maintain your living standards with sustainable monthly payouts.

However, CPF LIFE guarantees a lifelong payout, whereas the Retirement Sum Scheme will only last as long as you have funds in your CPF Retirement Account.

Thankfully, you can get maximum CPF cash top-up relief, maximum top-up amount, and relief for cash out with the Retirement Sum Scheme to enhance your retirement plans.

However, ensure that you consult with a financial expert before you join a retirement scheme.

How Much Can Be Withdrawn From CPF At Age 55

CPF Retirement Sum: For Young Singaporeans

Although young Singaporeans have a lot of time to plan their retirement, it is always wise to start early to maximize your savings.

For instance, if you join a company at the age of 20, you will have more than 40 years to contribute to your CPF savings, which translates to more benefits during your retirement.

Here are some tips you can use to maximize your retirement savings.

  • You should use the cash more than funds from your CPF account.
  • Ensure that you transfer funds from your Ordinary Account to your Special Account.
  • Try to use cash or at least half-CPF if you have a housing loan. Using cash or partial CPF usage will ensure that your retirement savings gain more benefits over the years.
  • Although top-up schemes are not mandatory, you can use them to boost the overall interest to get better interest from your retirement savings.
  • If possible, try to work for as long as you can to maximize your CPF contribution.

Remember, retirement is an extension of your life, so it is always wise to be prepared for everything.

In short, proper planning is crucial, and the best thing would be to start early.

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