1. What is the CPF LIFE Calculator?

The CPF LIFE (Central Provident Fund Lifelong Income For The Elderly) calculator estimates monthly payouts based on retirement savings and annuity factors. It helps Singaporeans plan for their retirement income through the national pension scheme.

2. How Does the Calculator Work?

The calculator uses the CPF LIFE formula:

Where:

• \( Balance \) — Total CPF retirement savings ($)
• \( Annuity Factor \) — Factor based on age, gender, and chosen plan

Explanation: The annuity factor represents the present value of a lifetime stream of monthly payments, accounting for life expectancy and interest rates.

3. Importance of CPF LIFE Planning

Details: Proper retirement planning ensures financial security in old age. CPF LIFE provides a guaranteed monthly income for life, protecting against longevity risk and inflation.

4. Using the Calculator

Tips: Enter your CPF retirement savings balance 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 factors affect the annuity factor?
A: The annuity factor is determined by age, gender, interest rates, and the specific CPF LIFE plan chosen (Standard, Basic, or Escalating).

Q2: How often are CPF LIFE payouts made?
A: Payouts are made monthly and continue for life, providing a steady stream of retirement income.

Q3: Can I change my CPF LIFE plan after starting payouts?
A: Generally, you cannot change your plan once payouts have begun, so careful consideration is important before joining.

Q4: What happens to unused CPF savings?
A: Any remaining savings after the member's passing will be distributed to nominated beneficiaries.

Q5: When should I join CPF LIFE?
A: CPF members are automatically enrolled in CPF LIFE if they meet the eligibility criteria, typically around the payout eligibility age.