TL;DR – It’s a genuine question.
By now, we should all be clear that the social media posts and messages we’ve seen circulating, claiming that the Government has shifted the payout age for the Retirement Sum Scheme (RSS) to 70 are NOT true.
Central Provident Fund (CPF) Board even put out a statement to debunk the fake news:
In case you need to be reminded again, the eligible payout age for withdrawal still stays at 65.
While there is always a group of people lamenting and screaming “Return my CPF”, we also have a group of people on the other end of the spectrum, who prefer to have their money kept in their CPF accounts to earn better interest, as compared to leaving it in a bank account.
And Straits Times Forum writer Ms Whing Yeok Leng is one of them.
In her letter to the Straits Times forum, she wrote:
The CPF Retirement Sum Scheme allows CPF members to voluntarily defer the start of their payouts up to a maximum of age 70. That is of concern to me.
I have a friend who turned 70 last year and was allowed to defer her monthly payout only on appeal.
The Central Provident Fund Board should allow members turning 70 this year to continue to defer the start of monthly payouts if they choose to do so, until such time when they need the money.
It makes no financial sense to make it mandatory for such members to have to accept the monthly payouts, only for them to redeposit the money into a bank.
In a bank, the funds would be earning a much lower interest rate, compared with the CPF interest of 4 per cent to 6 per cent.
Incidentally, I have appealed to the CPF Board to allow me to continue deferring my monthly payouts when I turn 70 in two months’ time, but have not received a reply.
Whing Yeok Leng
Bearing in mind that the writer is not asking for the CPF Board to delay payout, but be given an option to allow members turning 70 to continue to defer their payouts – if they choose to do so and until a time when they need the money – do you think the option should be considered?