With increased life expectancy, you need to set aside enough savings to see yourselves through a longer period of retirement. The CPF Minimum Sum Scheme provides you with a monthly income to support a basic standard of living during retirement. You can choose to pledge your property up to 50% of the Minimum Sum. In the event that the property is sold or otherwise disposed of, you are required to refund the Minimum Sum deficiency, or the principal CPF withdrawn for the property plus the accrued interest*, whichever is lower. The Minimum Sum deficiency is the CPF Minimum Sum applicable to you when you reach 55 less the balance in your Retirement Account (excluding the interest earned).

* If your principal pledged amount is higher than your CPF principal amount used plus accrued interest, you will be required to refund the Minimum Sum deficiency or the principal pledged amount, whichever is lower.

If you have a Minimum Sum shortfall, part of your new CPF contributions, government top-ups and other refunds received after 55 will be used to make up the shortfall when you next withdraw your CPF.

Depending on your year of birth, you:

* Those who were born before 1930 have up to 31 December 2010 to join.

CPF LIFE will give you a monthly payout starting from your Draw-Down Age (DDA) for life. It improves upon the current Minimum Sum Scheme where payouts only last about 20 years.

For detailed information on CPF LIFE, please click here.

If you join CPF LIFE before your DDA, you will start to receive your monthly payout from your DDA. If you join after your DDA, you will start to receive the monthly payout from the following month after you are included in the scheme. You will get the payouts for as long as you live.

If you are on the CPF Minimum Sum Scheme, your monthly payment starts from your Draw-Down Age. If you have bought a life annuity, you will get a monthly income for life from your insurance company. Similarly, if you have kept your Minimum Sum with a participating bank, you will receive a monthly income from your bank until your Minimum Sum is exhausted.

Payment will start the following month upon receipt of your application and it will be credited to your designated bank account by the 4th working day of each month. The amount you will receive every month depends on the Minimum Sum you have set aside in your Retirement Account. The payment will continue until your Minimum Sum, including interest, is exhausted.

Click here to have an indication of the Minimum Sum monthly payout amount you will receive, and here for an estimate of the CPF LIFE monthly payout.