18 Sep 2026

SOURCE: CPF Board

You’ve been working towards retirement throughout your working years. As you get closer, you might already be thinking of how your retirement lifestyle will look like.

However, your needs might change as well, and that includes getting used to new responsibilities, routines, and even new roles outside of work. Beyond your basic needs, it’s also important that your financial needs in retirement do not add to the stressors of change. As you consider how your retirement lifestyle will shape up, it’s also worth reviewing if you’re still on the right track for your financial goals. To help you do just that, here are three steps to help you get ready for that important milestone.

1) Projecting ahead for your retirement

We know that it’s important to look ahead when you plan for retirement. That doesn’t stop even if you plan to stop working in the next few years or so.

As you get closer to your planned retirement age, your expenses and financial priorities may change. With less time to adjust your plans, the decisions you make now can have a lasting impact on your retirement. It is therefore important to review whether your current financial commitments will remain affordable after you stop receiving a regular salary. For instance, insurance premiums for additional coverage offered by an Integrated Shield Plan (IP) may seem more affordable when you’re younger and still earning a monthly salary. But over time, these premiums rise with age and can become harder to sustain in retirement.

If you’re investing or looking to invest, you might also find yourself wondering if you can take as much risk with your next investment. All investments come with risks, and with a shorter runway before hitting the retirement age, you also have less time to recover from any potential losses. Review your investments to ensure that the level of risk remains suitable for your retirement needs and circumstances.

With these considerations in mind, you can plan ahead for retirement more tangibly. You may not need to make major changes, but intentional adjustments with the future in mind can help you better manage the transition to retirement, and give you greater financial confidence as you enter a new stage in life.

2) Review if your retirement goals still suit you

Beyond reviewing whether your current financial commitments will remain affordable, consider whether your retirement goals still reflect the life you want.

Plans can change over time. For example, you might have thought about moving overseas when you retire, but caregiving responsibilities, family considerations or simply a change in preference may lead you to reconsider.

If you are still not sure how much you might need, the CPF retirement sums can serve as useful reference points. This amount you set aside in your Retirement Account (RA) will affect the monthly payouts you can receive in retirement:

• Basic Retirement Sum (BRS)

This is the amount where your monthly payouts in retirement will be sufficient in covering basic needs. For reference, if you turn 55 in 2026, the BRS is $110,200, and if you turn 55 in 2027, the BRS will be $114,100.    

• Full Retirement Sum (FRS)

This is set at double the amount of the BRS, and is the default amount set aside in your RA when you turned 55. For reference, if you turn 55 in 2026, the FRS is $220,400, and if you turn 55 in 2027, the FRS will be $228,200.

• Enhanced Retirement Sum (ERS)

This is double the amount of the FRS, and is the maximum amount you can top up to your RA if you’re aged 55 and above. For reference, if you turn 55 in 2026, the ERS is $440,800, and if you turn 55 in 2027, the ERS will be $456,400.

While these retirement sums aren’t absolute goals to follow, they are good reference points that can guide you to better understand how much you want to save towards.

If you find that your current projected payouts are insufficient for your needs, consider taking steps to close the gap. For example, you can make cash top-ups to your CPF to the Enhanced Retirement Sum, or transfer your Ordinary Account savings to your Retirement Account, to get higher monthly payouts in retirement.

3) Choose the CPF LIFE plan that best suits your needs

Once you are clearer about your goals, it’s easier to determine how much you might need each month when you retire.

While the retirement sum projects how much you need to set aside for a certain level of payouts, CPF LIFE helps you decide how you’ll receive your payouts.

What is CPF LIFE?

CPF Lifelong Income For the Elderly (CPF LIFE) is a national longevity insurance annuity scheme that provides you with monthly payouts no matter how long you live. You’re automatically included in CPF LIFE if you’re a Singapore Citizen or Permanent resident, have at least $60,000 in your retirement savings when you start getting your monthly payouts, and be born in 1958 or after.

CPF LIFE has three plans you can choose from:

• Escalating Plan

Under this plan, monthly payouts start lower, but increase by 2% a year for life. This is a plan for when you want to maintain your lifestyle even as prices go up due to inflation.

• Standard Plan

Under this plan, your monthly payouts stay the same, meaning they do not increase or decrease over time. This means you will have to make changes to your lifestyle should prices rise over time.

• Basic Plan

Under this plan, monthly payouts start low, and fall when your CPF balances fall below $60,000. This is suitable for you if you can lower your lifestyle to buy lesser over time, even as prices rise.

There are no right or wrong answers when it comes to choosing which plan to go for. At the end of the day, it’s all about what kind of retirement lifestyle you want, and opting for the plan that will give you the payouts required for that lifestyle. If you are aiming for higher retirement payouts, find out what it may take to receive $3,000 a month in CPF LIFE payouts. 

As you near retirement, planning well becomes even more important to ensure you can enter the golden years of your life with more confidence. What's more, you don’t have to take this journey alone. Planning together with your loved ones can help you align your priorities, make informed decisions and look ahead with confidence. The complete guide to retirement planning in Singapore can help you better understand what you need to know, and keep you prepared with the necessary resources.

The information provided in this article is accurate as of the date of publication.