Social commentator Mr Leong Sze Hian recently received a letter from the Central Provident Fund (CPF) Board stating that the monthly payouts from his CPF account, which were supposed to start being disbursed to him from the time he turns 64, has automatically been deferred to start when he turns 70 instead – unless he requests otherwise.
The letter also reportedly indicated that the later he defers his payouts to, the higher the amount of each payout will be. This would mean that more funds from his CPF account would be disbursed to him if he chooses to begin receiving his monthly payouts at a later age.
However, when Mr Leong visited the CPF branch in Bishan to clarify what will be the higher payout he will receive if he defers his payouts to begin from the age of 70, he was allegedly told by a staff member that she could not reveal the amount to him “because it’s a projection.”
When he questioned the staff once again, requesting that he needs to know since he would potentially be deferring his payments for an additional six years, the staff appears to have told him that there is no higher payout, but that the amount in his account would last him longer.
This is apparently contrary to the letter he received, according to Mr Leong who recounted the exchange in a blog post:
“I queued at the CPF Board at Bishan this morning (26 September) to ask “Since I have received your letter informing me that my monthly payout which is supposed to start at age 64, has been automatically deferred to start at age 70, unless I request otherwise – what is the higher payout that I will get from age 70?”
“The staff’s answer: “We can’t tell you the amount because it’s a projection.”
“Then I followed up with another question: “But if I wait 6 more years to start my payouts I would need to know how much more right?”
“She looked at her computer terminal again and replied: “the amount is the same – just that it would last longer for more years”.
“But the letter I received says I will get more, the later I delay my payout to 70, 69, 68, 67, 66, 65 and 64?”
So which is it? Do you receive higher payouts if you defer disbursements to a later age? Or is the amount of the payout the same? Misinformed staff or misleading letter?