Give those turning 70 an option to further defer CPF payouts

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. PHOTO: LIANHE ZAOBAO

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

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A version of this article appeared in the print edition of The Straits Times on March 29, 2019, with the headline Give those turning 70 an option to further defer CPF payouts. Subscribe