CPF LIFE VS Retirement Sum Scheme (RSS) : What’s The Difference?

https://dollarsandsense.sg/cpf-life-vs-retirement-sum-scheme-whats-difference/

Main Similarities & Differences between RSS & CPF Life

Same:
PEA age = 65 (must apply payout at 65, otherwise default to auto-payout at 70)

(PEA : Payout Eligibility Age)

Differences:

1. Compulsory Scheme

  • RSS : 1957 or earlier
  • CPF Life: 1958 onwards. Opt in for 1957 or earlier

2. Payment duration:

  • RSS : until CPF money depleted (till 95)
  • CPF Life: Forever till death

3. Where is your CPF Money ?

  • RSS: still in your account, depleted by monthly payout till 95.
  • CPF Life: Forever Gone ! You get it back a monthly payout until death.

4. Interest:

  • RSS : interest earned deposited into your account.
  • CPF Life: ZERO. All interest gone to the common pool.

5. Buy Property:

  • RSS: can (amount subject to below conditions)
  • CPF Life: CAN NOT!

RSS Monthly Payout until CPF depleted till 95 (estimated)

https://www.bankbazaar.sg/cpf/retirement-sum-scheme.html

You can cash out the excess from your Retirement Account above the Basic Retirement amount.

Example:
Assume you have in the Retirement Account the required Full Sum $123K (for 1955 borns reaching age 55 by 2010):

CPF Life Payout (Default Standard Plan = higher payout / lower bequest)

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