“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