CPF: “No action is required if you wish to start your payouts at age 70”?

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“The later you start the payouts, the more interest you will earn in your RA.”

I have just received a letter from the CPF Board dated 5 September 2017, informing me that “You will be turning 64 in November. Based on your Retirement Account (RA) balance of $………. as at 31/08/2017, you can receive $…….. monthly from November 2017 under the CPF Retirement Sum Scheme. Your payouts will last about 22 years.

You can choose to start your payouts between age 64 and age 70. The later you start your payouts, the more interest you will earn in your RA. You will also receive a Voluntary Deferment Bonus of 2% on the first $30,000 of your RA balance if you start your payouts later.

No action is required if you wish to start your payouts at age 70. 

Should you decide to start your payouts before age 70, please complete and send the enclosed form to us. If you have a POSB, OCBC or UOB account, apply online at www.cpf.gov.sg.”

Has there ever been any announcement in the media or in Parliament that – if you take no action – your retirement monthly payouts will automatically be deferred to start at age 70?

Leong Sze Hian

About the Author

Leong
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.