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CPF savings are meant to provide members with an income in retirement

Employment practices
  • The Straits Times (29 March 2019): Give those turning 70 an option to further defer CPF payouts

CPF savings are meant to provide members with an income in retirement
- The Straits Times, 9 April 2019

  1. We thank Mdm Whing Yeok Leng for her views on deferring CPF payouts beyond age 70 (Give those turning 70 an option to further defer CPF payouts, Mar 29).
  2. CPF members can instruct CPF Board to start their retirement payouts at any time after they reach their payout eligibility age of 65.
  3. From Jan 2018, CPF Board will also start payouts for members on the Retirement Sum Scheme if they have not done so by age 70. Since this was announced, the Board has received appeals from some members who turned 70 and wished to retain their savings in CPF to enjoy above-market interest rates. Some of these members have much more than their cohort Full Retirement Sum.
  4. Some flexibility to defer payouts beyond age 70 is granted on a case-by-case basis to members with lower balances. This allows them to benefit from higher payouts that last them to a later age. 
  5. Fundamentally however, the CPF is designed to provide members an income in retirement, rather than serve as an alternative investment instrument in retirement.  Members with higher balances who have no immediate use of their CPF savings even after age 70, or who wish to build up a larger bequest for their nominees, should consider other investment options besides CPF.
  6. CPF Board has separately contacted Mdm Whing on the outcome of her appeal.

Sim Feng-Ji
Divisional Director
Income Security Policy Division
Ministry of Manpower

Give those turning 70 an option to further defer CPF payouts
- The Straits Times, 29 March 2019

  1. The CPF Retirement Sum Scheme allows CPF members to voluntarily defer the start of their payouts up to a maximum of age 70. That is of concern to me.
  2. I have a friend who turned 70 last year and was allowed to defer her monthly payout only on appeal.
  3. The Central Provident Fund Board should allow members turning 70 this year to continue to defer the start of monthly payouts if they choose to do so, until such time when they need the money.
  4. It makes no financial sense to make it mandatory for such members to have to accept the monthly payouts, only for them to redeposit the money into a bank.
  5. In a bank, the funds would be earning a much lower interest rate, compared with the CPF interest of 4 per cent to 6 per cent.
  6. Incidentally, I have appealed to the CPF Board to allow me to continue deferring my monthly payouts when I turn 70 in two months' time, but have not received a reply.

Whing Yeok Leng