CPF Overview – The FIVE 3s

Many people are confused what CPF is all about, including me last time.

I summarise the Five 3s of CPF here.


3 Basic Needs for Retirement

  1. A fully paid up home.
  2. Support for Healthcare Expenses.
  3. Lifelong Stream of Retirement Income


3 Contributors to CPF

  1. Yourself
  2. Employer
  3. Government provide good risk free interest rate


3 Ways to Grow CPF Savings

  1. Do Nothing and enjoy risk free interest rate (CPFOA 2.5%, CPFSA 4%).
  2. Use CPFIS (CPF Investment Scheme) if you know how to invest  to generate higher return.
  3. Use LRIS (Lifetime Retirement Investment Scheme) if you don’t know how to invest.

Note: All the above need time to let the compounding effect to take place.


3 Levels of Retirement Sums Set Aside at Age 55 in Retirement Account (RA)

  1. Basic
  2. Full
  3. Enhanced


3 CPF Life Plans After Age 65 Which Determine the Monthly Payout

  1. Standard Plan (Give more today and leaves less for your loved ones)
  2. Basic Plan (Give less today and leaves behind more for your loved ones)
  3. Escalating Plan (Start with lower payout that will increase every year)




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