4 Oct 2024
SOURCE: CPF Board
How much monthly payouts do you need in retirement?
The amount of monthly payouts you need in retirement requires careful consideration of your expenses and income sources. Start by calculating your basic living expenses, including housing, food, healthcare, and utilities.
Next, consider any additional expenses you may have, such as leisure activities, travel, or supporting dependents. Keep in mind that these extra costs may likely need to be funded through other sources.
Finally, bear in mind that prices today will rise over time due to inflation. Hence, the further you are from retirement, the more you may need to adjust your estimated expenses for rising prices over time.
If you want to increase your CPF monthly payouts to meet your needs, you can consider making a cash top-up to your Retirement Account (RA) or transfer savings from your Ordinary Account (OA) to RA to benefit from CPF interest rates of up to 6% per annum.
Planning your CPF retirement payouts with the Retirement Payout Planner
Plan your CPF retirement payouts by first visiting the CPF’s Retirement Payout Planner. Next, log in to your CPF account using Singpass.
1) Set your retirement payout goal based on your desired lifestyle
Start by indicating the monthly payout you need. You can also try using the retirement income guide in the planner to help estimate the monthly payout you need based on your lifestyle.
Be sure to also consider how your lifestyle might be adjusted as the cost-of-living increases over your retirement years.
2) View your current projected CPF monthly payouts and savings, which are based on personalised information like your salary details
Key in your current salary details to project your CPF payouts and savings at age 65, with CPF contributions factored in.
You can see the comparison between your projected monthly payouts and payout goal, and identify any shortfalls if any.
3) Simulate CPF actions to help reach your payout/savings goals
Simulate CPF actions (e.g. top-ups or transfers) and see how it can increase your projected CPF retirement payouts/savings!
Make the most of your CPF savings and plan your retirement payouts with the CPF Retirement Payout Planner
CPF’s Retirement Payout Planner is a handy and useful tool that projects your retirement payouts and savings at age 65. It also enables you to simulate CPF actions to visualise the impact on your projected payouts and savings.
At the end of the planner, once you’re clearer about the next step to take for your retirement planning, you can also choose to perform transactions like topping up or transferring your CPF savings from OA to SA to progress towards your retirement payout goal.
If you like this article, be sure to check out these simple steps to make a CPF nomination and how you can easily transfer your OA savings to SA!
Information in this article is accurate as at the date of publication.
