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|