Estimate monthly annuity income from a lump sum.
Monthly payout
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Total income received
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Total vs lump sum
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CPF LIFE approx (FRS S$213k)
~S$1,600/mo
Annual payout
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Your breakdown
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How annuity payouts work
An annuity converts a lump sum into a stream of regular income. The provider holds your capital, invests it, and returns it to you with interest over the agreed payout period. The monthly payout is set so that the capital and accumulated interest are exactly exhausted at the end of the term, if it is a fixed-term annuity. A lifetime annuity does not run out at a fixed date: payouts continue until death, and the longevity risk is pooled across all policyholders. CPF LIFE is a lifetime annuity, which is why it is generally superior for retirement income planning compared to a fixed-term private annuity. For a fixed-term product, the key variables are the lump sum, the crediting rate, and the term.
CPF LIFE as the benchmark
For Singapore citizens and permanent residents, CPF LIFE is the default retirement income product. At the Full Retirement Sum of approximately S$213,000 in 2025, the Standard Plan pays roughly S$1,500 to S$1,800 per month starting at age 65, for life. At the Enhanced Retirement Sum of approximately S$426,000, payouts rise to roughly S$2,300 to S$2,800 per month. These payouts are partially supported by the pooling of mortality risk: those who die early effectively subsidise the payouts of those who live longer. A private annuity without this pooling needs a higher crediting rate to match CPF LIFE, which is why CPF is often described as one of the best annuity products available in Singapore.
Supplementing CPF LIFE with private products
Most Singaporeans approaching retirement supplement CPF LIFE with additional income sources: the Supplementary Retirement Scheme (SRS), rental income, dividends, and occasionally private annuities. SRS withdrawals from age 62 are taxed at 50 percent of the normal rate, making SRS an effective tax-planning tool. Private income annuities from local insurers are sometimes used to bridge the period between early retirement and CPF LIFE payout commencement at 65. When comparing products, focus on the effective internal rate of return, the death benefit treatment, and whether the payout is fixed or inflation-linked. Few private annuities offer inflation-linked payouts in Singapore, which means their real value erodes over a long retirement.