Do I have enough CPF savings?

For many Singaporeans, CPF is like a quiet safety net that works in the background. You see a chunk of your salary deducted early every month, and you probably glance at your CPF statement once in a while; However most of us probably do not think too much about our CPF until we are closer to retirement.

Eventually, you will probably ask yourself these questions: "Will my CPF savings be enough? How much will I really get each month? And will it cover the lifestyle I want when I stop working?"

The answers however are not one-size-fits-all. They will depend on several factors including your family circumstances, your housing situation, or whether you have other assets outside CPF.

This article goes through some of the factors you will need to consider to determine whether your CPF savings will be enough for you.

1. Understand the Retirement Income baseline

The core of retirement planning in Singapore is CPF LIFE (Lifelong Income For the Elderly). CPF LIFE is an annuity scheme that pays you a monthly income for as long as you live, starting from your payout eligibility age (currently 65, though you can defer to 70).

Your monthly payout depends on how much you set aside in your Retirement Account (RA) at age 55. At that point, savings from your Special Account (SA) and Ordinary Account (OA) are transferred into your RA, up to the applicable retirement sum.

As of 2025, the CPF Retirement Sums are:

• Basic Retirement Sum (BRS): S$106,500
• Full Retirement Sum (FRS): S$213,000 (generally 2x BRS)
• Enhanced Retirement Sum (ERS): S$426,000 (from 2025, the ERS was raised to 4x BRS)

What does this mean in practice?

• BRS: Payouts of S$860 to S$950/month from age 65.
• FRS: Payouts of S$1,610 to S$1,730/month.
• ERS: Payouts of S$3100 to S$3,330/month.

These payouts rise slightly over time because CPF LIFE is adjusted for inflation and longevity. But the central question remains: Would you be able to live comfortably on those payouts, considering your desired lifestyle in retirement?

2. Factor in housing and healthcare

CPF was never designed as a retirement-only account. A large portion of our CPF monies often goes into housing, particularly through the OA.

For most Singaporeans, this is not a bad thing: owning your home outright eliminates a major expense in retirement. But there are two key risks:

1. Over-investing CPF in housing. If most of your CPF went into a large or expensive property, you may be “asset-rich but cash-poor.” You will own a valuable asset, but your retirement income will be thin.
2. Outstanding loans at 55. If you still have a mortgage, your CPF contributions may continue to be diverted into housing instead of building up your RA. This can erode your retirement security.

Healthcare is the other elephant in the room. MediSave and MediShield Life provide basic coverage, but serious illness or long-term care can be financially devastating. Singapore’s healthcare costs are expected to rise faster than inflation as the population ages. Ensuring you have sufficient MediSave balances, plus CareShield Life and optional supplements, is as critical as ensuring RA adequacy.

Ask yourself:

• Will my home be fully paid up before I retire?
• If I need to unlock housing wealth (via downsizing or Lease Buyback), am I willing to?
• Is my MediSave balance growing steadily (ideally S$40,000–S$60,000 or more at retirement)?

3. Compare CPF against your lifestyle goals

CPF “enoughness” also depends on your lifestyle. Retirement is not just about covering necessities; it’s about maintaining dignity and, ideally, enjoying the fruits of decades of work.

Here is how CPF balances stack against common lifestyles:

• Basic lifestyle (BRS sufficient): You own a fully paid HDB, cook at home, rely on public transport, keep entertainment modest.
• Comfortable lifestyle (FRS closer): Occasional dining out, yearly regional travel, regular social activities, ability to support grandchildren or parents.
• Aspirational lifestyle (ERS or more): Frequent overseas travel, hobbies like golf or cruises, leaving financial legacy for children.

The Department of Statistics’ Household Expenditure Survey indicates retiree households spend S$1,300–S$2,500/month, depending on income group. That is why CPF LIFE payouts at FRS level (~S$1,600/month) are designed to hit the national “average retiree spend.” But remember: your household size, health, and expectations may push you above or below that benchmark.

4. Do not forget other assets

CPF is a foundation, but it was never intended to be the entire house. Other income sources can significantly change the picture:

• Investments: REITs, stocks, or bonds can provide dividends and growth beyond CPF’s guaranteed interest.
• Property rental: A second property can be a powerful income stream (though ABSD rules limit new purchases).
• Cash savings: Flexibility in emergencies.
• Insurance endowments/annuities: These can supplement CPF LIFE with additional guaranteed income.

The rule of thumb: the more diversified your assets, the less pressure on CPF to do all the heavy lifting.

How to build up CPF if you are falling short

If you discover a gap, there are proven strategies:

1. Voluntary top-ups (RA/SA): Earn up to 6% interest annually, tax relief benefits apply.
2. Transfer OA to SA before 55: Accelerates growth since SA interest is higher (4% vs OA’s 2.5%).
3. Delay CPF LIFE payouts: Deferring payouts from 65 to 70 increases them ~7% per year.
4. Right-size housing: Selling a larger flat and moving to a smaller unit can release equity while cutting expenses.
5. Extend working years: Even part-time work after 65 adds contributions and reduces the years of full dependency on savings.

Quick CPF “Enoughness” checklist

✅ Do I know my projected CPF LIFE payout at 65?
✅ Does it cover at least 70% of my expected monthly expenses?
✅ Will my home be fully paid before retirement?
✅ Is my MediSave balance sufficient (≥$40,000–$60,000)?
✅ Do I have other assets to top up CPF income?

If you score 4–5 “yes” answers, you are in a strong position. If not, action is needed.

A simple CPF retirement calculator framework

1. Expected retirement expenses/month: $________
2. Projected CPF LIFE payout/month (check via CPF website): $________
3. Gap = Expenses – CPF payout: $________
4. Other income sources (investments, rental, cash): $________
5. Adjusted gap after other income: $________

If the adjusted gap is ≤ 0, you are secure. If positive, you will need either to increase CPF savings, cut expenses, or boost other income sources.

Get help if you need it

While CPF rules are standardised, your retirement needs are unique. Factors such as whether you own a property, how much you have set aside in investments, your health outlook, and your family responsibilities all affect how much you truly need.

This is where speaking to a licensed financial adviser or representative can make a difference. A professional can:

• Project your CPF LIFE payouts based on your current contributions.
• Assess whether your CPF balances are tracking toward the Retirement Sum you aim for.
• Recommend strategies to bridge any gaps, such as top-ups, private annuities, or investment plans.

By getting tailored advice early, you will have more options to grow your savings and ensure your retirement lifestyle aligns with your goals.