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 55 | Estimated BRS Payout at age 65 | RA Balance at age 65 with BRS | BRS 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 55 | Estimated FRS Payout at age 65 | RA Balance at age 65 with FRS | FRS 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 55 | Estimated ERS Payout at age 65 | RA Balance at age 65 with ERS | ERS 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
- Use cash instead of CPF to pay for your house.
- Make partial capital repayments on your housing loan, using cash.
- Transfer money from your Ordinary Account (OA) to your Special Account (SA).
- Retirement Sum Topping-Up Scheme.
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”