The CPF Board has responded to a letter writer from the Today newspaper who asked why the Central Provident Fund (CPF) Board is requiring its members to have sufficient funds in their retirement account to last them till age 128.
In its reply to Mr Phan Pang Chia the Board’s spokesperson said, “the payout duration depends on the Central Provident Fund member’s RA balance. Members who have received high amounts of voluntary top-ups to their RA may see a big extension of the duration.”
“Under such circumstances, members can apply to increase their monthly RSS payouts and shorten the duration. Alternatively, they can join CPF Life, which would provide higher monthly payouts, while ensuring that payouts last for life,” she added.
The Board has also personally contacted Mr Phan and his wife to better explain how the scheme works in detail. It assured members that it was enhancing its communication of RSS policies to members, and reviewing the default RSS payout duration.
Send in your scoop to firstname.lastname@example.org