Confused about CPF payout age? All you need to know

Recently, some CPF members were confused about when they can start receiving their monthly payouts.
Recently, some CPF members were confused about when they can start receiving their monthly payouts.ST PHOTO: JASMINE CHOONG
Netizens have raised concerns over a recently circulated letter from the Central Provident Fund Board, which some have misunderstood as the Government raising the default payout age from 65 to 70.
Netizens have raised concerns over a recently circulated letter from the Central Provident Fund Board, which some have misunderstood as the Government raising the default payout age from 65 to 70.PHOTO: ST READER

The retirement sum you set aside in your Central Provident Fund (CPF) Retirement Account will be used to provide you with monthly payouts once you reach your payout eligibility age (PEA). This is 65 years old for those born from 1954 onwards. Recently, some CPF members were confused about when they can start receiving their monthly payouts.

Why the confusion and unhappiness?

It started with a recent Facebook post which included a photograph of a letter from CPF advising the recipient of the letter of the CPF payout options upon turning 65. One sentence in the letter read: "No action is required if you wish to start your payouts at age 70."

Some netizens misunderstood the wording and mistakenly concluded that the payout age has been moved to 70. Others thought that if they do not apply to start their monthly payouts at 65, the next time they can do so is at age 70.

So what's the truth?

CPF members can choose to start their monthly payouts at 65 or defer payouts anytime between 65 and 70. Age 70 is the latest that you can defer payout.

How it works

 

About six months before you turn 65, the CPF Board will inform you that you can start your monthly payouts by completing an application form. You can apply online. Your payouts will start from your birthday month.

If you are still working or have other sources of income, you may not want to start your payouts at 65. So you can choose to begin the payouts at anytime between ages 65 and 70.

If you do not submit your application to the board between the ages of 65 and 70, your payouts will automatically start at the age of 70.

Members who defer the start of their payouts will benefit from getting more retirement savings with the attractive interest that they earn on their CPF savings. For every year that you defer, your CPF Life payouts will increase by up to 7 per cent.