Taking stock of retirement income at age 60

Congratulations on reaching a new life stage! With this milestone, you may now unlock a host of new benefits and privileges. As you begin to enjoy them, it’s also a timely opportunity to revisit your retirement plans. A thoughtful review now can help ensure you're well-positioned for the journey ahead – confident, secure, and ready for what’s next.

1. Central Provident Fund (CPF) savings and CPF LIFE

From age 55 and above, you will experience two key CPF milestones:

Age 55

At age 55, CPF transfers savings from your Special Account (SA) and/or Ordinary Account (OA) to your new Retirement Account (RA), up to your Full Retirement Sum (FRS) and closes your SA.

The FRS increases every year but your FRS at age 55 stays the same for the rest of your life. Take note that you continue to enjoy the same long-term interest rate for RA savings as SA balances. Under CPF LIFE, RA savings will generate monthly payouts when you turn 65.

Remaining savings, if any, are transferred to your OA. CPF savings can be withdrawn from age 55 to pay for immediate needs. Do check how much you can use by logging in to your Retirement Dashboard before making any withdrawal. Also consider how withdrawals can affect future CPF LIFE income.

Age 65

You can begin receiving your CPF LIFE payouts from age 65. If you prefer, you have the flexibility to defer them anytime up to age 70 – giving you more control over your retirement income timeline.

CPF LIFE is Singapore’s national insurance annuity scheme that provides monthly income for life and CPF LIFE savings are guaranteed by the Singapore Government. The payouts are a reliable source of income, which is why Singapore banks also recognise them as proof of income should you apply for credit cards after you stop working.

Your CPF LIFE monthly payouts from age 65 depend on two main factors:

1. How much you set aside in you RA

• If you set aside only the Basic Retirement Sum (BRS), your monthly payouts may pay for basic living expenses, according to CPF.
• If you set aside the FRS, which is double the BRS, you may be able to pay for living expenses and rental costs, also according to CPF.
• To enjoy higher payouts, you can set aside the Enhanced Retirement Sum (ERS). In 2025, the ERS was increased from three times to four times the BRS, to SGD426,000.

2. Which plan you select. Choose from three to suit your budget and retirement needs:

• Standard – Receive fixed monthly payouts for life.
• Escalating – Monthly payouts start lower than the Standard plan but increase 2% every year for as long as you live to help protect your retirement lifestyle from inflation.
• Basic (legacy plan) – Monthly payouts start lower than the Standard plan and decrease when your CPF savings fall below SGD60,000.

These are estimated CPF LIFE payouts, based on CPF projections made in 2025. Note that your payouts may vary.

What you can do at age 60:

• If you are still working, review your desired retirement age, how much you need when you are retired and how much you have accumulated so far. The difference between how much you need and how much you have is your retirement gap.
• Log in to CPF’s Monthly Payout Estimator to estimate your monthly CPF LIFE payouts from 65.
• If you want larger monthly CPF LIFE payouts, increase CPF LIFE premiums by making cash-top ups or CPF transfers to your RA, up to the ERS of the current year. Consider making top-ups annually when the ERS is raised every January. Take note that you also qualify for tax relief of up to SGD8,000 if your top-ups are made in cash.
• Consider other ways you can bridge your retirement gap. Are there opportunities to unlock value from your home, make cash savings work harder or even delay retirement?
• Also consider how inflation can eat into your retirement lifestyle over the years.

2. Property as retirement asset

Here are some ways you can unlock value from your property to boost retirement income:

Lease Buyback Scheme (LBS)

From age 65, if you live in a Housing and Development Board (HDB) flat and plan to continue living there during retirement, you can consider selling part of your lease back to HDB under the LBS.

Proceeds from sale will be used to top up your CPF RA to specified requirements for lifelong CPF LIFE monthly payouts. You will also receive an LBS bonus of up to SGD30,000 depending on how much you top up.

Silver Housing Bonus (SHB)

From age 55, receive a cash bonus of up to SGD30,000 when you downsize from a larger HDB flat to a three-room or smaller flat, and use the proceeds to top up your CPF RA. From 1 December 2025, the cash bonus increases SGD10,000 to SGD40,000.

Rental income

Earn passive income from renting out investment property or spare bedrooms in your home.

What you can do at age 60:

• Plan ahead by checking eligibility conditions and RA top-up requirements (LBS).
• Check eligibility conditions, and especially if you qualify to buy an HDB flat (SHB).
• Discuss with loved ones living with you their future housing needs and plans before going ahead.

3. Investments as retirement nest egg

If your investment portfolio is your retirement nest egg, these are three considerations as you get older.

• Your investments can be easily sold should you urgently need cash more than what you have in your emergency fund.
• Your portfolio is not concentrated in investments with high risk of capital loss.
• Investments can generate cashflow to meet daily expenses. Passive income may come from bond coupons, as well as dividends from unit trusts, Real Estate Investment Trusts (REIT) or stocks. Also remember that, like investment returns, investment income is not guaranteed.

What you can do at age 60:

• Review both your risk profile and investment portfolio.
• Retirement planning typically involves reducing risk in your portfolio as you plan to stop work, while diversifying the portfolio to include investments that can pay regular income.
• Plan ahead, as rebalancing your portfolio can take time depending on market conditions, portfolio size, and the types of investments you hold.

4. Other sources of retirement income

Supplementary Retirement Scheme (SRS) savings

You can withdraw from your SRS account at any time. However, take note that early withdrawals from your SRS account before the statutory retirement age will incur a 5% penalty. The withdrawn amount will also be subject to taxes. When you withdraw from your SRS account on or after the statutory retirement age, only 50% of the amount withdrawn is taxable.

Cash savings

You can set aside cash savings in a high-interest bank account to ensure funds are easily accessible for emergencies. Fixed deposits may offer slightly higher interest but will require you to lock up your money for a specific period. Consider your liquidity needs for both daily expenses and emergencies.

Payouts from insurance policies

Consider using maturity proceeds from insurance policies to pay down debt like an outstanding housing loan as you plan for retirement. Or even topping up your CPF RA to the current ERS for higher CPF LIFE payouts when you turn 65.

Planning beyond 60

As life circumstances change, review your retirement strategy periodically and allow for flexibility.

You may find fulfilment in a job beyond the statutory retirement age or decide to work part-time during retirement to stay active. Life changes such as supporting a loved one, welcoming a grandchild, or facing new health challenges, may also prompt adjustments to your retirement plan.

While you take stock of retirement income, also take the opportunity to make or review legacy plans like your will, CPF nomination, Lasting Power of Attorney (LPA) and Advance Care Plan (ACP). Putting these plans in place early give you peace of mind that you will be cared for the way you wish, and your loved ones are provided for should the unforeseen happen.

Find out more: What happens to your money if you’re suddenly gone? | UOB Singapore

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