What happens to my savings used for CPF LIFE when I pass away? Will it go to my beneficiaries?
Upon your passing, your remaining CPF LIFE premium balance and any remaining balances in your CPF accounts will be paid to your beneficiaries. The remaining CPF LIFE premium balance refers to the amount of Retirement Account (RA) savings deducted for the CPF LIFE premium when you joined CPF LIFE less the total amount of CPF LIFE payouts you received prior to your passing. As CPF LIFE works by risk-pooling, like other insurance, the interest on the remaining CPF LIFE premium is pooled to enable members to receive lifelong payouts.
Illustration 1: John has $200,000 in his RA at age 65 which he uses to join the CPF LIFE Standard Plan. He receives a monthly payout of $1,120 a month. After 5 years, he would have received a total of $67,200 (i.e. $1,120 x 12 months x 5 years) in payouts. His remaining premium balance would then be $132,800 (i.e. $200,000 - $67,200). If he passes away at this point, the $132,800 will go to his beneficiaries, together with any remaining balances in his CPF accounts.
For members on the CPF LIFE Basic Plan, about 10-20% of their RA savings are used for their CPF LIFE premium. They will receive payouts from their remaining RA savings until age 90. From age 90 onwards, the monthly payouts will come from their CPF LIFE premium. When they pass away, their beneficiaries will receive their remaining CPF LIFE premium balance as well as any remaining balances in their RA and other CPF accounts.
Illustration 2: Jane has $300,000 in her RA at age 70 when she decides to join the CPF LIFE Basic Plan. $51,000 of her RA is deducted for the CPF LIFE premium. She receives a monthly payout of $1,560 a month, which is drawn from her RA until age 90. After 10 years, she would have received $187,200 (i.e. $1,560 x 12 months x 10 years) of payouts in total, from her RA savings. Her remaining CPF LIFE premium balance is still $51,000. If she passes away at this point, the remaining premium balance of $51,000 will go to her beneficiaries, together with any remaining balances in her CPF accounts.
You can check your CPF LIFE policy details, including your premium balance in the “Monthly payouts” section of your Retirement Dashboard.
To ensure your loved ones receive your CPF savings, including any CPF LIFE premium balance, quickly and conveniently, make a CPF nomination or review your CPF nomination details.
This information is sourced from CPF
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