7,000 Members of CPF life will see higher monthly payouts

Singapore. On 15 February, the Central Provident Fund Board announced that 85,000 people born before 1948 will receive automatic monthly payouts from June. The payouts will be received in their coming birth month and will be deposited into their bank account.

Previously, a lot of members neglected to instruct the CPF board to start payouts from age 65. This prompted the board to make changes in 2018, where members born on or after 1948 automatically receive monthly payouts.

More from OMY: What Is The Maximum CPF Contribution?

“This was positively received as the seamless process had allowed CPF members to enjoy their CPF savings which they had accumulated during their working years,” shared CPF Board.

“It is timely to extend this automatic commencement of monthly payouts to cohorts born before 1948.”

Under the Retirement Sum Scheme, those part of the senior population shall receive payouts every month until their retirement savings run out. This applies to people who are not part of CPF Life, which enrols people turning 65 in 2023 with at least S$60,000 in their retirement account. This also provides monthly payouts for life. Those who are part of the Retirement Sum Scheme may join CPF Life before turning 80.

Additionally, the CPF also announced that around 7,000 members and future members will enjoy higher payouts if they have savings in their OA and SA that cannot be withdrawn in a lump sum.

“If they have not set aside their cohort Full Retirement Sum, such inflows may not be withdrawable in a lump sum and are meant to be streamed out as monthly payouts,” stated the CPF Board.

“These members currently need to instruct CPF Board to annuitise their Ordinary and Special Account savings so that they may receive a higher CPF Life payout.”

Starting October 2023, savings in OA and SA which can’t be withdrawn in a lump sum will be annuitised automatically for higher CPF Life payouts. Members will also be notified before this.

In his budget speech, Finance Minister Lawrence Wong announced that the minimum CPF monthly payout for seniors on the Retirement Scheme will be S$350 from S$250.

More from OMY: A Comprehensive Guide to CPF in Singapore

(Photo: CPF|Facebook)

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