1. Higher Interest Rates
2. Lifelong Payment: Delayed Draw-down Age
3. Lifelong Payment: Deferment Bonus (D-Bonus)
4. Lifelong Payment: Voluntary Bonus (V-Bonus)
5. CPF LIFE
6. Re-employment & Workfare Improvement Scheme (WIS)
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| 1. Higher Interest Rates |
The first $60,000 of your combined CPF balances, with up to $20,000 from your Ordinary Account, will earn an extra 1% interest. |
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The OA interest rate formula will remain unchanged. Hence, at current interest rates, the OA rate on the first $20,000 will be 3.5%. The extra interest will be paid into the Special or Retirement Accounts. |
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The SMRA interest rate will be pegged to the yield of the 10-year Singapore Government Security (10YSGS) plus 1%. So, if the 10YSGS is 3%, then the SMRA interest rate will be 4%*. SMRA money in the extra interest tier will earn 5%.
*Using this formula, the average SMRA interest rate from 1999 till today would have been 4.5% instead of 4%. |
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All CPF accounts will continue to have a guaranteed interest rate of 2.5%. To help members adjust to the new SMRA formula, SMRA funds will have a guaranteed interest rate of 4% for 2 years from 2008 to 2009. |
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| Click here to calculate extra interest. |
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| More related FAQs. |
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| 2. Lifelong Payout: Delayed Draw-down Age (DDA) |
| The Minimum Sum DDA will be raised progressively from age 62 to 63 in 2012, 64 in 2015 and 65 in 2018. |
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| More related FAQs. |
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| 3. Lifelong Payment: Deferment Bonus (D-Bonus) |
| To help members who are between age 50 and 57 this year cope with the later DDA, a one-off D-Bonus will be given. Those above 55 will receive their D-Bonus on 1 May 2008. The others will receive it when they turn 55. D-Bonus will be paid into members’ Retirement account to improve their retirement savings. |
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| Click here to check your eligibility of D-Bonus and V-Bonus. |
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| More related FAQs. |
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| 4. Lifelong Payment: Voluntary Bonus (V-Bonus) |
| To encourage members to voluntarily defer their draw down to age 65, a V-Bonus will be given for each year of deferment. Members aged 54 to 63 in 2007 who have not started their draw-down are eligible. V-Bonus will be paid into members’ Retirement account to improve their retirement savings. |
DDA, D-Bonus and V-Bonus Table
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Age at
31 Dec 07 |
Draw-Down Age (DDA) |
D-Bonus for later DDA (3 - 5% of RA balance up to max of $30,000) |
V-Bonus to 65 years (2% of RA balance up to max of $30,000 for each year) |
Maximum Total Bonus |
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63 |
62 |
Not applicable |
2% (max $600) |
$ 600 |
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62 |
62 |
Not applicable |
2% (max $600 x 2 years) |
$1,200 |
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58 to 61 |
62 |
Not applicable |
2% (max $600 x 3 years) |
$1,800 |
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56 to 57* |
63 |
5% (max $1,500) |
2% (max $600 x 2 years) |
$2,700 |
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54 to 55* |
64 |
5% (max $1,500) |
2% (max $600) |
$2,100 |
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52 to 53* |
65 |
4% (max $1,200) |
Not applicable |
$1,200 |
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50 to 51 |
65 |
3% (max $900) |
Not applicable |
$ 900 | |
| * These are the cohorts first affected by each change in the DDA |
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| Click here to check your eligibility of D-Bonus and V-Bonus. |
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| 5. CPF LIFE |
| Singaporeans are living longer and run the risk of outliving their income in old age. They should therefore make financial provisions in case they live longer than expected. This is fair, as other Singaporeans would have to take care of them if they run out of savings. |
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| CPF LIFE is the cheapest way to do this. CPF LIFE would give members a monthly income from age 65 for as long as they live. CPF LIFE plans are fair, affordable and provide flexible options so that members’ needs are addressed. |
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| More information on CPF LIFE. |
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| 6. Re-employment Legislation & Workfare Income Supplement (WIS) |
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| By 1 January 2012, employers will be required by law to offer re-employment to workers reaching 62, to work up to age 65, and eventually to 67. For more information on the re-employment legislation, visit MOM’s website or call them at 6438-5122. |
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| The maximum Workfare Income Supplement (WIS) today is $100 a month. To encourage older workers to work longer, the maximum WIS will be increased to $150 for workers aged above 55 to 60, and to $200 for those above 60. |
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| These changes will be immediate. The first WIS payment will be made in January 2008 for work done in the first half of 2007. |
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| More details on WIS. |
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| Click here to calculate WIS payouts. |
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| More related FAQs. |
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