A common misconception by many Singaporeans is regarding the Retirement Sum set aside in their Retirement Account (RA) versus what they “should be proportionately getting” in their monthly payouts. There are three levels of Retirement Sum: The Full Retirement Sum (FRS) is two times the Basic Retirement Sum (BRS), and the Enhanced Retirement Sum (ERS) three times the BRS. These are subject to annual revisions to cater for long-term inflation and increase in standard of living. However, why are CPF LIFE monthly payouts for BRS, FRS and ERS not proportional? The first $60,000 of your CPF balances earns higher interest of up to 6% p.a. This is due to the Extra 1% Interest, which is currently paid on the first combined $60,000 balances. Additional Extra 1% Interest, which is currently paid on top of the Extra Interest on the first combined $30,000 balances for Singaporeans aged 55 and above <img...