Would it not be great to wake up during retirement and receive steady monthly income no matter how old you are? In Singapore where people are living longer this is not just a dream. CPF LIFE makes it possible. This national annuity scheme protects you from running out of savings in old age. New improvements coming in 2025 will make the system even better and give financial security to more Singaporeans. What is CPF Life? CPF LIFE is a government-backed annuity scheme that provides lifelong monthly payments using your Retirement Account savings. The scheme works by pooling risk across all members so everyone gets income for their entire life even after their personal savings run out. Most Singapore citizens & permanent residents are automatically enrolled once they have at least S$60000 in their Retirement Account. People who start receiving payments between ages 65 and 70 get higher monthly amounts because their savings have more time to grow through compound interest.
Key Updates for 2025
One of the most significant updates in 2025 is the increase in the Enhanced Retirement Sum (ERS). It has been raised from three times to four times the Basic Retirement Sum (BRS). This change allows members who are turning 55 in 2025 to voluntarily set aside a much larger amount in their Retirement Account, leading to substantially higher monthly payouts in retirement. The revision reflects long-term planning needs as people live longer and face higher living expenses in later years.
In addition to the ERS increase, several other enhancements have been introduced. These include stronger support for members with lower CPF balances through the Matched Retirement Savings Scheme, as well as higher CPF contribution rates for older workers. Together, these measures aim to improve retirement adequacy while keeping rising costs and longevity risks in clear focus.
Retirement Sums in 2025
Your Retirement Account (RA) is created when you turn 55, and the savings transferred into it are guided by the applicable retirement sums for the year. In 2025, these updated benchmarks allow members greater flexibility in choosing how much they wish to set aside, depending on their desired retirement income. The higher ERS option especially benefits those who want stronger monthly payouts while still enjoying CPF’s attractive interest rates.
| Support Scheme | Who Can Receive It | 2025 Benefit Value | Key Details |
|---|---|---|---|
| SG60 Cash Vouchers | Singapore citizens aged 21 and above | $600 (ages 21–59) $800 (ages 60+) |
One-time payout scheduled for December 2025 |
| CDC Household Vouchers | All Singaporean households | $800 per household | Released in multiple tranches across 2025 |
| Assurance Package – Cash Component | Adults 21+, based on income and property ownership | Portion of $700–$2,250 package | Multi-year support, with part paid out in 2025 |
| U-Save Utilities Rebates | Eligible HDB households | Up to $760 per year | Enhanced for 2025 and credited quarterly |
Choosing Your CPF LIFE Plan
CPF LIFE offers three main plans designed to suit different retirement needs and preferences. The Standard Plan, which is the default option, provides higher monthly payouts at the start, making it suitable for those who prefer more stable income without adjustments for inflation. This plan is often chosen by retirees who prioritise immediate cash flow.
The Basic Plan offers comparatively lower payouts but places greater emphasis on leaving a bequest. It is generally preferred by individuals with shorter life expectancy or those who value passing on savings to their beneficiaries. Each plan allows members to align their retirement income with personal circumstances.
What Sets CPF LIFE Apart in 2025
With the revised ERS limits in 2025, retirees can now work towards significantly higher monthly payouts, potentially reaching around $3,300 or more. Beyond payouts, CPF LIFE continues to stand out due to its tax relief benefits and consistently high, risk-free interest rates. When combined with other CPF schemes and planning tools, CPF LIFE remains a strong and reliable foundation for long-term retirement sufficiency in Singapore.
