4 Tips To Help You Achieve Your Sweet Retirement

CPF Basic Retirement Sum 2022

CPF Basic Retirement Sum 2022

This year, during the budget speech, our Finance Minister announced updates to the CPF Basic Retirement Sum (BRS), Full Retirement Sum (FRS) and Enhanced Retirement Sum (ERS).

The Basic Retirement Sum (BRS) monthly payouts will be increased with each cohort turning 65 in years 2023 to 2027. CPF Basic Retirement Sum (BRS) will also be raised by 3.5% per year from 2023 to 2027.

The objective of the increase is to give retirees greater assurance for their basic retirement needs.

Below are the changes to the respective retirement sum.

CPF Basic Retirement Sum (BRS) – Year 2023 to 2027

The Basic Retirement Sum for those turning 55 this year is $96,000.

Year member turns age 55Estimated BRS Payout at age 65RA Balance at age 65 with BRSBRS to be set aside at age 55
2023$870$154,500$99,400
2024$900$159,600$102,900
2025$930$164,800$106,500
2026$950$170,200$110,200
2027$980$175,800$114,100

CPF Full Retirement Sum (FRS) – Year 2023 to 2027

Year member turns age 55Estimated FRS Payout at age 65RA Balance at age 65 with FRSFRS to be set aside at age 55
2023$1,620$298,800$198,800
2024$1,670$308,900$205,800
2025$1,730$319,400$213,000
2026$1,780$330,100$220,400
2027$1,840$341,500$228,200

CPF Enhanced Retirement Sum (ERS) – Year 2023 to 2027

Year member turns age 55Estimated ERS Payout at age 65RA Balance at age 65 with ERSERS to be set aside at age 55
2023$2,370$443,100$298,200
2024$2,450$458,300$308,700
2025$2,530$474,000$319,500
2026$2,610$490,100$330,600
2027$2,690$507,100$342,300

Summary of CPF Basic Retirement Sum 2022

Here are some of the ways to reach your desired retirement sum earlier

  1. Use cash instead of CPF to pay for your house.
  2. Make partial capital repayments on your housing loan, using cash.
  3. Transfer money from your Ordinary Account (OA) to your Special Account (SA).
  4. Retirement Sum Topping-Up Scheme.

One comment

  1. With costly hdb flats, an average earners will find it hard to use cash to pay off the balance of the housing loan or top up their RA since most of their take home pay will be used for family needs, children education, personal expenses, taking care of aged parents etc.
    As Chinese saying, “if you don’t have enough fresh fish to eat now, don’t think of preserving it for tomorrow”

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