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 off, you are required to refund the pledged amount plus accrued interest to your Retirement Account.

If you have a Minimum Sum shortfall, up to 50% 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.

Your CPF Minimum Sum 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 monthly payout amount you will receive.

If you are 50 years old or younger in 2008 with at least $40,000 in your Minimum Sum at age 55, you will be automatically covered by CPF LIFE.