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 The scheme has been replaced by “CPF Retirement Sum Scheme”.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.
The 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.
|55th birthday on or after||Minimum Sum|
(in 2003 dollars)
(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|
|Your age as at 31 Dec 2007||Applicable draw-down age|
|64 and above||60|
|58 and 63||62|
|56 to 57||63|
|54 to 55||64|
|53 and below||65|
How much is your monthly payout
You 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:
- Inflation rates for calculation of the CPF Minimum Sum for July 2011 and beyond are assumed to be 1%.
- The Retirement Account interest is currently at 4%, subject to future changes.
Like this article? Subscribe for More
Simply leave your email for more money and investment tips.