CPF: Why some offered 22, 24, 30 years, etc, monthly retirement payout?


Should people receive higher monthly payouts instead of extending their payment periods for increased interests?

After I wrote “CPF: “No action is required if you wish to start your payouts at age 70”?” (Sep 7) – one of my schoolmates from Raffles Institution called me to ask about a similar letter which his wife has just received – saying that she would receive $910 monthly from age 64, for 24 years – but that she would have to opt for it at cpf.gov.sg (no specific link address).

If she does nothing – her monthly withdrawals will automatically be deferred to age 70.

A reader also made the following comment at TR Emeritus:-


Mr Leong, you are lucky that your payouts last for 22 years. I have received same CPF letter a month ago. My letter stated that my payouts will last for 30 years. Oh gosh! how CPF Board can predict that I can live up to the age of 94? I have voiced my displeasure about the extended payment period and demanded that the Board stick to the payout for 20 years as listed in their website. But all their replies are nonsensical like interests have increased and now life expectancy is longer. I have argued that since we can earn more interests now, then it will be logical for the Board to pay higher monthly payouts instead of extending the payout period. However they have rejected all my requests.”

Why is it that the period is different for different people – 22, 24, 30 years, etc?

Leong Sze Hian

About the Author

Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.