When Singaporeans think about retirement, CPF inevitably comes to mind given how much of a role it plays in our savings journey. However, what’s really key to determining our lifestyle, at least post-retirement, is CPF LIFE.
This is the scheme that converts your CPF savings into lifelong monthly payouts – giving you the assurance of an income for as long as you live. But, exactly how much you’ll receive in CPF LIFE payouts largely depends on how much you’ve set aside in your Retirement Account (RA). In turn, your RA is largely determined by how much flows into it from your Special Account (SA) and Ordinary Account (OA) when you turn 55 years old.
More specifically, your monthly payouts are determined by whether you’ve hit the Basic Retirement Sum (BRS), Full Retirement Sum (FRS), or Enhanced Retirement Sum (ERS) in your RA.
Each year, the BRS, FRS and ERS is revised each year – to account for inflation and higher cost of living in Singapore.
Read Also: [Beginners’ Guide] Understanding CPF LIFE And Your Monthly Payouts When You Retire In Singapore
Understanding The Three Retirement Sums
Let’s start with the Basic Retirement Sum (BRS), which represents the “baseline” supplemental income that aims to meet basic living expenses in retirement. This is assuming you own a home and do not need to pay rent.
Meanwhile, the Full Retirement Sum (FRS) is simply double the BRS. It’s designed to provide a more comfortable level of retirement income for those who can set aside more savings in their RA.
Finally, you have the Enhanced Retirement Sum (ERS) which, as its name suggests, is the upper limit you can voluntarily top up your RA to.
In the past, the ERS was three times the BRS but starting in 2025, CPF has raised that ceiling to 4 times the BRS. This higher cap gives those who can afford it the optionality to generate a much larger payout in retirement.
Read Also: BRS, FRS, ERS: Why There Are 3 CPF Retirement Sums & Why They Increase Every Year
CPF LIFE And The Retirement Account
CPF LIFE is effectively an annuity scheme provided by the Singapore Government. When you turn 55, a Retirement Account (RA) is created for you.
Money from your Special Account is transferred into it first, followed by the Ordinary Account (OA) up to the prevailing FRS. Your RA savings earn up to 6% interest per year, and from age 65, it funds your CPF LIFE payouts.
You contribute your RA savings to the scheme, and in return, you get monthly income for life when you hit the retirement age (which in 2025 is 65 years old). Alternatively, you can delay entering the CPF LIFE scheme until you reach 70.
The amount you receive depends on how much you’ve accumulated, which CPF LIFE plan you choose (Standard, Basic, or Escalating), and the age at which you start your payouts.
The Retirement Sums For 2025
For those turning 55 in 2025, the current retirement sums are:
– BRS: S$106,500
– FRS: S$213,000
– ERS: S$426,000
These figures reflect the government’s ongoing annual increase in retirement sums from 2023 to 2027, that’s meant to keep pace with inflation and reflect rising living costs. When the time comes, the government will also release the retirement sums in future years, giving us more certainty in knowing what we should be aiming for.
Read Also: Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55
How Much Will Your CPF LIFE Payout Be?
So how does this translate into real monthly income once you reach 65 and start receiving payouts under CPF LIFE’s default Standard Plan?
If you’ve set aside the Basic Retirement Sum of S$106,500, you can expect to receive roughly S$860 to S$930 per month upon retirement. This range can cover your essential expenses, assuming you own a property and have minimal financial obligations.
If you’ve managed to save the Full Retirement Sum of S$213,000, your monthly payout nearly doubles to around S$1,610 to S$1,730. That’s a meaningful increase in retirement comfort, allowing more headroom for discretionary spending like dining out and occasional travel.
At the top end, if your RA holds the Enhanced Retirement Sum of S$426,000, your CPF LIFE monthly payout rises sharply to S$3,100 to S$3,330 per month.
CPF Retirement Sums And Monthly Payouts At 65
Source: CPF Board
That’s more than triple the BRS payout and can comfortably support a middle-class lifestyle, especially if you’re debt-free and continue earning some passive income from other sources.
What The Different Plans Mean
CPF LIFE offers three options. The default Standard Plan provides the highest starting payout and is the default for most members. The Escalating Plan starts with a lower payout that increases by 2% each year to offset inflation. Then there’s the Basic Plan, which gives lower payouts but leaves a larger pot for your beneficiaries.
Most Singaporeans stick with the Standard Plan because it maximises lifetime income. The key takeaway is that the plan choice affects the size and trajectory of your payouts, but your underlying RA savings will remain the biggest driver of monthly income in retirement.
While one of the biggest changes to CPF LIFE in 2025 was the ERS being raised to four times the BRS, the there was also the closure of the SA for members aged 55 and above.
However, the underlying principle remains the same: the more you save in your CPF, the more secure and predictable your retirement income will be from CPF LIFE.
For those who do want to get to the various sums faster, small top-ups, consistent CPF contributions, and an awareness of how the system can help you compound your BRS, FRS, or ERS will make all the difference when it’s your turn to collect a monthly income in retirement.
Read Also: CPF LIFE Standard, Basic Or Escalating Plan. Which CPF LIFE Plans Should You Choose?
The post How Much You Will Get In CPF LIFE Monthly Payouts if You Save The BRS/FRS/ERS In 2025? appeared first on DollarsAndSense.sg.
