Read a message about the Government quietly shifting the so-called “retirement payout age” from 65 to 70 years old for CPF members under the Retirement Sum Scheme?
Factually summarises what you need to know.
1. There has been no change to the Payout Eligibility Age – it is 65
The Payout Eligibility Age, which is 65 years old from 2018, is the age CPF members can start receiving their retirement payouts.
There has been no change to the Payout Eligibility Age.
2. You decide when you start your payouts
CPF members, not the CPF Board, decide when to start their retirement payouts. This has been a long-standing practice.
This is because CPF members are in the best position to decide based on their individual circumstances.
3. Applying for your CPF payouts is simple
About six months before they turn 65, CPF members on the Retirement Sum Scheme will receive a letter from the CPF Board. It includes an application form to start payouts. They only need to fill in basic information - name, NRIC, contact and bank account details - and mail the completed form to the CPF Board.
They can also apply online on the CPF website or at a CPF Service Centre.
For members who do not apply, CPF Board will continue to remind them in their CPF Yearly Statement of Account.
4. CPF Board will start payouts if you don’t do so by age 70
In the past, some CPF members on the Retirement Sum Scheme did not submit their applications to start their payouts. This could result in their savings staying in their accounts until they passed away.
To help Retirement Sum Scheme members kick-start their retirement income, since January 2018, CPF Board has helped members start their payouts at age 70 if they have not applied by then.
5. You will get more, if you start your payouts later
CPF members can decide when to start their payouts, anytime between age 65 and 70. Those who do not need their payouts at 65, can benefit from earning risk-free interest of up to 6% a year on their CPF savings, and hence receive a larger payout and/or a longer payout duration. The 6% includes the extra interest of 1% for the first $60,000 and additional extra interest of 1% for the first $30,000.
Not sure which scheme you are on? Here’s a quick breakdown: