CPF Life is an essential part of every Singaporean’s plan for retirement. While most of us will be automatically enrolled for CPF Life when we reach the age of 65, there are those in the Merdeka Generation, born before 1958, who have a choice between CPF Life and the Retirement Sum Scheme (RSS). Although they are automatically enrolled for the Retirement Sum Scheme, they also have the option to switch to CPF Life at anytime before the age of 80. How should they choose between these two options, and when should they do it?

CPF Life offers CPF members a guaranteed annuity of between 15 to 25 years, depending on the plan chosen (Standard or Basic), where you either get payouts if you survive, or a bequest if you do not. It also offers a true annuity past the guaranteed period, providing payouts for life, thus hedging you against the risk of outliving your financial resources.