The Central Provident Fund (CPF) Board took to Facebook over the weekend to dispel rumors circulating that the age for receiving CPF payouts under the Retirement Sum Scheme (RSS) was raised to 70 years old.
On Saturday morning, January 19, the CPF posted the following, under the title, ‘4 FACTS ABOUT THE CPF PAYOUT ELIGIBILITY AGE’
“You may have recently come across social media posts and messages that claim that the Government has quietly shifted the ‘retirement payout age’ to 70 for the Retirement Sum Scheme (RSS). This is not true and here are the facts. Do share this with your friends and loved ones.
The Payout Eligibility Age (PEA) for members born from 1954 onwards is 65 years old. This means that members can start receiving their monthly payments anytime from age 65. This was announced in 2007 and has not changed.
Before members reach their PEA, they will receive a letter from the CPF Board informing them that they can start their monthly payouts using the enclosed application form or applying online. Members are also reminded through their Yearly Statement of Account that they can apply to start their payouts.”
Prior to 2018, if members did not apply to start their RSS payouts from age 65, the payouts would not start at all as there was no automatic start age for payouts. As a result, some members did not start their payouts even after age 70. The Board therefore introduced the automatic starting of payouts for members turning age 70 from Jan 2018 onwards, to simplify the activation process and let members start enjoying a retirement income from their CPF savings.
Similarly, the automatic start age of 70 applies to CPF LIFE members who turn age 55 from July 2015, if they have not informed us of their wish to start their payouts between the ages of 65 to 70. This enables CPF members to enjoy higher payouts, which is in line with the CPF Advisory Panel’s recommendation to offer members the option of deferring the payout age up to age 70.”
Confusion concerning the payout age seems to have started after members who received letters from the CPF Board interpreted one portion to mean that the payout age had been raised.
These letters simply serve to remind citizens that they can apply for monthly payouts from the time they reach 65, and provide an application form and link to an online application form if the citizen wishes to do so.
The sentence, “No action is required if you wish to start your payouts at age 70” may have led people to believe that payouts will not be given till that age, although people can avail of it if they apply starting from age 65.
The automatic payout scheme activated when citizens reach the age of 70 was implemented last year to ensure that seniors will indeed get their payouts, since, in the past, citizens who did not apply did not receive the payouts.