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How are the CPF LIFE payouts calculated?

Updated by CPF
CPF LIFE payouts are computed based on the following factors:  
 
FactorHow it affects your monthly payout 
Your Retirement Account (RA) balance when you join CPF LIFEYour RA savings are used to pay for the CPF LIFE premium. The higher your RA balance when you join CPF LIFE, the higher your payout will be.
When you start payouts For each year that you defer starting payouts, your payouts will increase by up to 7%. 
CPF interest ratesCPF LIFE payouts factor in the CPF interest rate, with a floor of 4%, and up to 2% extra interest on the first $60,000 of your combined CPF balances.
Life expectancy / Mortality rates

Since CPF LIFE pays monthly payouts for life, longer life expectancies would result in lower monthly payouts as the payout duration is longer on average.

Hence, males receive higher payouts compared to females as they have a shorter average life expectancy.

 
 
 

This information is sourced from CPF.

Topics:

Retirement IncomeMonthly Payouts

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