CPF LIFE for 55 years old and above

Start­ing from this month, CPF Board will begin to offer CPF LIFE to mem­bers age 55 and above this year. This first phase of CPF LIFE will be on a vol­un­tary basis, unlike those younger mem­bers whereby par­ti­cip­a­tion is compulsory.

Mem­bers will be placed into one of the four plans, LIFE Bal­anced Plan (default), LIFE Basic Plan, LIFE Plus Plan and LIFE Income Plan. The LIFE Basic Plan provides for a higher bequest amount at the expense of lower monthly pay­outs. The LIFE plus Plan give a higher income but lower bequest amount. The LIFE Income Plan offers the highest monthly income but no bequest amount, prob­ably most suit­able for mem­bers who have no dependents.

LIFE-bonus of up to $4000 will be given to eli­gible mem­bers who opt in. This will help those with lower CPF bal­ances to enjoy higher monthly pay­outs under CPF LIFE scheme. Mem­bers who have received their draw­down age could receive their first pay­outs from CPF LIFE as early as Janu­ary 2010. The interest rate for Spe­cial, Medis­ave, Retire­ment Account floor rate will still be kept at a floor rate of 4% till end 2010. There­after, it will be pegged to the yield of the 10-Year Singa­pore Gov­ern­ment Secur­it­ies plus 1%.
The time­frame for opt­ing in is shown in the table below:

Born in Age in 2009 When to apply To be eli­gible for L-Bonus
1929 and before 80 and older From Sept 2009 to Dec 2010 By Dec 2010
1930 — 1954 55 –79 From Sept 2009 till age 80 By Dec 2010
1955 — 1962 47–54 Upon turn­ing 55 till age 80 Before turn­ing age 56
1963 and after 46 and younger NA

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