Last week, over lunch with my colleagues, the conversation turned to CPF LIFE. There was quite a bit of uncertainty about whether the interest earned in an individual’s CPF Retirement Account (RA) actually goes to them and their heirs or if it gets integrated into CPF LIFE.
To clear up this confusion, let’s delve into what becomes of your CPF RA balance and the interest accrued when CPF LIFE starts taking effect.
### Understanding CPF LIFE
CPF LIFE, or the Central Provident Fund Lifelong Income For the Elderly, is a national annuity program. It’s designed to provide you with monthly payouts for the rest of your life, ensuring financial stability during your retirement years. A crucial point to note here is about the interest from the CPF LIFE premium. This interest isn’t yours to keep. Instead, it’s added to the CPF LIFE funds, which collectively support the ongoing payouts for all members.
So, how exactly does your CPF RA balance and its interest factor into this? Let’s explore further.
