S$1250 Monthly CPF LIFE Pension in Singapore: All You Need To Know

Financial security is the most important thing in the life of the elderly. When an individual retires he has no established source of income, and in this case, a dependable scheme to ensure that on retirement, an established amount coming in as monthly pension is a boon or blessing. CPF LIFE scheme (Central Provident Fund Central Provident Fund click here to read more about Central Provident Fund) in Singapore is in the process of doing the same.

We shall know all about CPF LIFE scheme, how to obtain S$1250 per month, what are all the eligibility, what are all the benefits and what you as an individual should do to become a part of it in this article.

What is CPF LIFE scheme?

CPF LIFE (Lifelong Income For the Elderly) is one of the Singapore government pension schemes, with the objective of sexcessful monthly income to the old people of Singapore. In this plan, an individual will still get a fixed amount of money per month even after his retirement- regardless of the number of years that one lives.

This scheme is based on the Central Provident Fund (CPF), which is Singapore’s mandatory savings account. Working people deposit a part of their salary in CPF and employers also contribute to it. This money is transferred to CPF LIFE at the time of retirement.

How to get a monthly pension of S$1250?

The amount of pension under CPF LIFE depends on how much money you have deposited in the CPF account till retirement. If you have an amount of about S$198,800 or more in your CPF retirement account, you may be eligible to get a pension of up to about S$1250 every month. This amount is available for life from the age of 65.

Who can join CPF LIFE?

There are some conditions to join this scheme:

• The person must be a citizen of Singapore or a permanent resident (PR).
• Age should be 65 years or above (although joining CPF LIFE can start at 55 years).
• Have sufficient savings in retirement account (at least Basic Retirement Sum or Full Retirement Sum).
• If you don’t have sufficient funds, you can still join CPF LIFE but the pension amount may be less.

CPF LIFE Plans – Which Plan is Best for You?

There are three main types of CPF LIFE:

• Standard Plan Highest monthly pension.

But no “insurance protection” – meaning less benefit after death.

• Basic Plan Monthly pension is slightly less.

But the money left in the CPF account after death is returned to the nominee.

• Escalating Plan The pension increases by 2% every year – protects against inflation.

But the monthly amount is a little less in the beginning.

What are the benefits of CPF LIFE?

• Lifetime monthly income: Whether the person lives for 90 years or 100, the pension will continue.
• Reliability: This is a government-run scheme – completely safe.
• Non-taxable: CPF LIFE pension is usually tax-free.
• Inflation protection: The pension can be increased every year with the Escalating Plan.

How to join CPF LIFE?

If you are 55 years old and have minimum savings in your CPF retirement account, the process of joining CPF LIFE starts. You have to choose the plan at the age of 65.

Joining Process:

• Go to the CPF website: www.cpf.gov.sg
• Click on the “Join CPF LIFE” section.
• Choose your plan – Standard, Basic or Escalating
• Confirm the details and fill out the online form.

Can I get a lump sum pension?

CPF LIFE is a lifetime monthly income plan, so there is no lump sum option. However, at age 55, you can withdraw some amount as a lump sum (the balance after the Basic Retirement Sum).

Can foreigners avail of this benefit?

Yes, if you are a Singapore citizen and have sufficient savings in a CPF account, you can get a CPF LIFE pension even if you are abroad. All you need to do is provide your bank account details to CPF and your pension can be credited to your account every month via international transfer.

What happens after death?

If a CPF LIFE member dies, the balance in the CPF account is returned to the nominee, depending on the plan type – particularly under the Basic Plan.

The Standard Plan has a lower amount to be returned upon death as the individual receives a higher lifetime pension.

CPF LIFE vs other savings options

Criteria	CPF LIFE	Private Pension Schemes
Security	Government-backed – Safe	Subject to market risks
Income	Guaranteed lifelong monthly income	Varies with market conditions
Tax Benefits	Tax-free	Depends on the scheme
Beneficiary Payment	Nominee receives balance in Basic Plan	Not available in some schemes

Conclusion

If you are a Singaporean looking for a lifetime monthly income after retirement, CPF LIFE is a very reliable option. The best part is that there is no investment risk, it is guaranteed by the government, and it can give you a stable income of up to ₹76,000 (S$1250) per month.

FAQs