CPF Board has recently released more details on the CPF LIFE Scheme. The CPF Life Payout Estimator and Information Booklet can be found on their website here – CPF LIFE Website. I’ve done some comparison between the CPF LIFE vs Commercial Annuity already, I’ll do some simple comparison between payouts under the new CPF LIFE vs Minimum Sum Scheme (MMS).

The Minimum Sum Scheme

Depending on your birthday, the corresponding  Minimum Sum (MS) will be different for different ages. This MS would provide a monthly payout that would last approximately 20 years. The prevailing Minimum Sum (MS) is $117,000.

The Draw Down Age (DDA), ie when you can start receiving the payout, is different for different ages.

Table 1 MMS DDA

Assuming a CPF member aged 55 having the MS of $117,000 fully in cash, he can start receiving a monthly payout of $1,040 for about 20 years. The interest rate is assumed to be 4% per annum. Read more…