With effect from 1 Jan 2016, there is no more CPF Minimum Sum. The scheme has been replaced by “CPF Retirement Sum Scheme”. Click here for the information about the new scheme

cpf-minimum-sumThe scheme below has been discontinued.

With increased life expectancy, we must set aside enough savings to see ourselves through a longer period of retirement.

What is CPF Minimum Sum

The CPF Minimum Sum Scheme provides members with a monthly income to support a modest standard of living during retirement. In another word, it converts the lump sum from your Retirement Account to a stream of retirement income.

Members may participate in CPF LIFE or buy approved life annuities with their Minimum Sum to give them a guaranteed income for life. Alternatively, they may place their savings with approved banks or continue to keep it with the CPF Board. The Minimum Sum left with the CPF Board currently earns 4% interest per annum. The interest rate is revised every yearly.

How much is CPF Minimum Sum

The CPF Minimum Sum was set at $80,000 in 2003 and will be raised gradually until it reaches $120,000 (in 2003 dollars) in 2015. These amounts will be adjusted yearly for inflation.

If you are unable to set aside your full Minimum Sum in cash, your property, bought with your CPF savings, will be automatically pledged for up to half of your Minimum Sum. You will receive a monthly income from your Draw-Down Age until your Minimum Sum is exhausted.

The two tables below show the increment of CPF minimum sum and applicable draw-down Age. If you want your payout to last longer, you may wish to start your monthly payouts later.

CPF Minimum Sum Increment
55th birthday on or afterMinimum Sum
(in 2003 dollars)
Minimum Sum
(after adjustment for inflation)
1 July 2003$80,000$80,000
1 July 2004$84,000$84,500
1 July 2005$88,000$90,000
1 July 2006$92,000$94,600
1 July 2007$96,000$99,600
1 July 2008$100,000$106,000
1 July 2009$104,000$117,000
1 July 2010$108,000$123,000
1 July 2011$112,000$131,000
1 July 2012$113,000$139,000
1 July 2013$115,000$148,000
1 July 2014$117,500$155,000
1 July 2015$120,000$161,000
Table: applicable draw-down Age
Your age as at 31 Dec 2007Applicable draw-down age
64 and above60
58 and 6362
56 to 5763
54 to 5564
53 and below65

How much is your monthly payout

cpf-minimum-sum-cartoonYou can project the monthly payout you will receive from your Retirement Account upon reaching your applicable Draw Down Age using this CPF Minimum Sum Payout Calculator. However, do note the calculation is based on the following assumptions:

  1. Inflation rates for calculation of the CPF Minimum Sum for July 2011 and beyond are assumed to be 1%.
  2. The Retirement Account interest is currently at 4%, subject to future changes.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

  • I tried to click on “CPF Minimum Sum Payout Calculator” but the link is invalid.
    I would like your opinion of whether it is better to join the CPF Life scheme or remain on MS scheme.

  • {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}