1. What is CPF LIFE?

CPF LIFE (Central Provident Fund Lifelong Income For The Elderly) is Singapore's national longevity insurance annuity scheme. It provides Singaporeans with a monthly payout for life, starting from their chosen payout age.

2. How Does the Calculator Work?

The calculator uses the CPF LIFE payout formula:

Where:

• \( Retirement\ Sum \) — The amount set aside in your CPF Retirement Account
• \( Annuity\ Factor \) — A factor based on your age, gender, and chosen plan

Explanation: The annuity factor represents the present value of $1 of monthly payout for life, considering mortality rates and interest rates.

3. Importance of CPF LIFE Planning

Details: Proper planning for CPF LIFE ensures you have adequate monthly income during retirement years, providing financial security and peace of mind in your golden years.

4. Using the Calculator

Tips: Enter your retirement sum in Singapore dollars and the appropriate annuity factor based on your age, gender, and chosen CPF LIFE plan. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between CPF LIFE plans?
A: CPF LIFE offers different plans (Standard, Basic, Escalating) with varying payout amounts and bequest features to suit different retirement needs.

Q2: When should I start my CPF LIFE payouts?
A: You can start your CPF LIFE payouts anytime from your payout eligibility age (currently 65) up to age 70. Starting later results in higher monthly payouts.

Q3: How is the annuity factor determined?
A: The annuity factor is calculated by CPF Board based on mortality tables, interest rates, and your demographic factors like age and gender.

Q4: Can I change my CPF LIFE plan after starting payouts?
A: No, you cannot change your CPF LIFE plan once payouts have started. It's important to carefully consider your choice before commencing payouts.

Q5: What happens to unused CPF LIFE premiums?
A: Any unused premiums after your passing will be paid out to your nominated beneficiaries as a bequest.