CPF’s Retirement Sum Scheme payout period to be capped at age 90 from 2020

[kobayashiGT]

CPF’s Retirement Sum Scheme payout period to be capped at age 90 from 2020
Read more at https://www.todayonline.com/singapore/cpfs-retirement-sum-scheme-payout-period-be-capped-age-90-2020-josephine-teo

SINGAPORE — The payout rules for the Retirement Sum Scheme under the Central Provident Fund (CPF) will change in 2020, with payouts lasting up to age 90 at most, instead of up to age 95 today.

The change comes after feedback from CPF members who felt that a payout duration up to age 95 was too long, the Ministry of Manpower (MOM) said.

With the change, members whose payouts were originally projected to end beyond the age of 90 will now have their payouts end when they turn 90 instead, and they will thus effectively see an increase in their monthly payout amounts, Manpower Minister Josephine Teo said in Parliament on Monday (Nov 4).

The extent to which the monthly payout will increase for these members will depend on his or her individual circumstances, such as age, Retirement Account balance and existing payout amount.

It will also take into account any top-ups to and withdrawals from his Retirement Account, MOM said.

Mrs Teo said that the new rules will apply to all CPF members who turn 65 from July 1 next year.

 

For older members who have already chosen to start their Retirement Sum Scheme payouts under the current rules, the new rules will apply to them from Jan 1 onwards — provided the resulting amount is higher than what they are presently getting, she said.

As of Jan 1 next year, CPF will send out a letter to members who are already receiving their payouts under the scheme.

This letter will detail if and how they are affected by the changes. This includes whether they will see any changes to their payouts or not, and how their payout duration has changed.

 

Mrs Teo also stressed that changes to the rules of the scheme will not affect the payout eligibility age of 65, for members born in 1954 and later.

The Retirement Sum Scheme is the main retirement payout plan for CPF members who were born before 1958, and it kicks in when they reach the age of 65.

MOM stated that around 160,000 members have passed their payout eligibility age and have started receiving payouts through the scheme.

Of this group, around 60,000, or over a third, will get higher payouts under the new rules.

 

 WHY SHORTEN THE PAYOUT DURATION?

The decision to shorten the duration came after MOM and CPF concluded a review on the payout rules.

MOM announced on Oct 7 that it had conducted the review of the scheme after receiving feedback from CPF members that the current duration is “too long”.

Taking into account the 4 per cent base interest rate on the CPF Retirement Account savings, the scheme is designed to provide members with monthly payouts for 20 years, or until their Retirement Account balance is exhausted.

The addition of the Extra Interest and Additional Extra Interest component, which were introduced in 2008 and 2016 respectively, allows the scheme's payout duration to be extended beyond 20 years, which the MOM had previously said “reduces the risk of members running out of savings in old age”.

For members who prefer to receive monthly payouts for life, Mrs Teo reminded them that they can opt for CPF Lifelong Income For the Elderly (Life), which was introduced in 2009.

CPF Life is optional for members under the Retirement Sum Scheme, who can apply to join CPF Life anytime between their payout eligibility age and before they turn 80 years old.
 

Quote

I am not too sure if i can still remb my singpass password at the age of 80 thou.

 

[Ash2017]

30 minutes ago, kobayashiGT said:

CPF’s Retirement Sum Scheme payout period to be capped at age 90 from 2020
Read more at https://www.todayonline.com/singapore/cpfs-retirement-sum-scheme-payout-period-be-capped-age-90-2020-josephine-teo

SINGAPORE — The payout rules for the Retirement Sum Scheme under the Central Provident Fund (CPF) will change in 2020, with payouts lasting up to age 90 at most, instead of up to age 95 today.

The change comes after feedback from CPF members who felt that a payout duration up to age 95 was too long, the Ministry of Manpower (MOM) said.

With the change, members whose payouts were originally projected to end beyond the age of 90 will now have their payouts end when they turn 90 instead, and they will thus effectively see an increase in their monthly payout amounts, Manpower Minister Josephine Teo said in Parliament on Monday (Nov 4).

The extent to which the monthly payout will increase for these members will depend on his or her individual circumstances, such as age, Retirement Account balance and existing payout amount.

It will also take into account any top-ups to and withdrawals from his Retirement Account, MOM said.

Mrs Teo said that the new rules will apply to all CPF members who turn 65 from July 1 next year.

 

For older members who have already chosen to start their Retirement Sum Scheme payouts under the current rules, the new rules will apply to them from Jan 1 onwards — provided the resulting amount is higher than what they are presently getting, she said.

As of Jan 1 next year, CPF will send out a letter to members who are already receiving their payouts under the scheme.

This letter will detail if and how they are affected by the changes. This includes whether they will see any changes to their payouts or not, and how their payout duration has changed.

 

Mrs Teo also stressed that changes to the rules of the scheme will not affect the payout eligibility age of 65, for members born in 1954 and later.

The Retirement Sum Scheme is the main retirement payout plan for CPF members who were born before 1958, and it kicks in when they reach the age of 65.

MOM stated that around 160,000 members have passed their payout eligibility age and have started receiving payouts through the scheme.

Of this group, around 60,000, or over a third, will get higher payouts under the new rules.

 

 WHY SHORTEN THE PAYOUT DURATION?

The decision to shorten the duration came after MOM and CPF concluded a review on the payout rules.

MOM announced on Oct 7 that it had conducted the review of the scheme after receiving feedback from CPF members that the current duration is “too long”.

Taking into account the 4 per cent base interest rate on the CPF Retirement Account savings, the scheme is designed to provide members with monthly payouts for 20 years, or until their Retirement Account balance is exhausted.

The addition of the Extra Interest and Additional Extra Interest component, which were introduced in 2008 and 2016 respectively, allows the scheme's payout duration to be extended beyond 20 years, which the MOM had previously said “reduces the risk of members running out of savings in old age”.

For members who prefer to receive monthly payouts for life, Mrs Teo reminded them that they can opt for CPF Lifelong Income For the Elderly (Life), which was introduced in 2009.

CPF Life is optional for members under the Retirement Sum Scheme, who can apply to join CPF Life anytime between their payout eligibility age and before they turn 80 years old.
 

 

I think a point in time will come when citizens become so fed-up that they don't bother and start to work around it

1. confirming that once an MP said CPF money is yours

2. can never touch the CPF money because goal post keeps shifting, unrealistic and do not intend to keep at 95 years, then to show they listen, they reduce to 90 years, if no one else complain they keep it at 90 years. I suspect there is a lower age limit that they have in mind but they are just floating balloons.

3. I apologize, I would love to share more internal information with you guys, but since I had been out of the PM race, I am also out of a lot of privy information.

 

 

[Mustank]

Doesn’t seems to affect cpf life

please correct if I read wrongly 

[Beehive3783]

Erections coming yo!

[Spring]

2 hours ago, Mustank said:

Doesn’t seems to affect cpf life

please correct if I read wrongly 

I also confused. I thought CPF Life is for life? Isn't CPL Life same as Retirement Sum Scheme?

[Mustank]

11 minutes ago, Spring said:

I also confused. I thought CPF Life is for life? Isn't CPL Life same as Retirement Sum Scheme?

I also don’t know

i suspect retirement sun scheme is for those our Father Time one

not us

those do digital economy freelance jobs like grab food type next time very hard

[Rm2s]

12 minutes ago, Spring said:

I also confused. I thought CPF Life is for life? Isn't CPL Life same as Retirement Sum Scheme?

Long answer to your short question. I copied from another website:

A If you were born before Jan 1, 1958, you will be on the RSS unless you have opted to join CPF Life.

If you were born between Jan 1, 1958 and April 30, 1961 and have at least $40,000 in your RA when you reach 55 years old; or at least $60,000 in your RA six months before you reach your PEA, you will be on CPF Life.

If you were born from May 1, 1961 onwards, and have at least $60,000 in your RA six months before you reach your payout eligibility age, you will be on CPF Life.

If you are on the RSS and would like to receive lifelong monthly payouts, you can join CPF Life any time before age 80.

So, CPF Life is for Life and CPF Life <> Retirement Sum Scheme

[Angcheek]

what CPF Life ......... it is still ur own money .  Btw , how much can you draw out per month ? 

how many can life over 80 ? 

at 80  already Lau cock cock ........... 🤣 

I help @Mockngbrd say ................ CCBPAP 

 

[Angcheek]

 

You give me now ......... I remind u when u are at 80 ai mai ?

FOC

 

[Mustank]

1 minute ago, Angcheek said:

what CPF Life ......... it is still ur own money .  Btw , how much can you draw out per month ? 

how many can life over 80 ? 

at 80  already Lau cock cock ........... 🤣 

I help @Mockngbrd say ................ CCBPAP 

 

65 lah not 80 lah 

 

 

[Angcheek]

Just now, Mustank said:

65 lah not 80 lah 

 

I can help u .... go massage twice a week will keep u to 80  

Mao ZheDong say one 

 

[Mustank]

4 minutes ago, Angcheek said:

I can help u .... go massage twice a week will keep u to 80  

Mao ZheDong say one 

 

No money lah 

got so much loans to clear

got parents and kids to feed 

Jin sandwitched

[Ct3833]

34 minutes ago, Mustank said:

65 lah not 80 lah 

 

 

He is referring to average life expectancy, avg ppl wontive long beyond 8p to continue receiving  payout, so the interest sum goes to ?

[Mustank]

Just now, Ct3833 said:

He is referring to average life expectancy, avg ppl wontive long beyond 8p to continue receiving  payout, so the interest sum goes to ?

That one is like pooled insurance liao

the one that lives longer gets more money

but outside you buy annunity you cannot get this rate one 

[Ct3833]

5 minutes ago, Mustank said:

That one is like pooled insurance liao

the one that lives longer gets more money

but outside you buy annunity you cannot get this rate one 

That is true,  I compare a couple of offers,  all no match. 

[Mustank]

10 hours ago, Ct3833 said:

That is true,  I compare a couple of offers,  all no match. 

My friend got tell me one trick to have less money pooled But the less money in the pool, you also get lesser lah

They got 3 Payout style; you take the one that leaves more money for your kids

my fries say this style more money stay in your SA and less money go in the pool

[Chongster]

Frankly If we have a system where cpf pays till 90, and after 90, govt just continue to pay and take care of the very old in society, I don’t mind my tax money supporting something like that.  
 

 

[Mustank]

16 minutes ago, Chongster said:

Frankly If we have a system where cpf pays till 90, and after 90, govt just continue to pay and take care of the very old in society, I don’t mind my tax money supporting something like that.  
 

 

Cpf life is Doing this but Depends onside ownself cpf account got how much noney

those grab food people no cpf next time want to buy house retirement all very difficult 

Edited November 6, 2019 by Mustank