Angry Singaporeans have stormed the CPF Board’s Facebook page, demanding the removal of the automatic delay of the Retirement Payout Age to 70 years old.
This, after the CPF Board issued a clarification on its FB page to a letter that went viral online.
As stated in the letter: “No action is required if you wish to start your payouts at age 70″
Clarifying the “default age” for payouts, the CPF Board said that CPF members can “apply to start their payouts any time between the ages of 65 and 70. If they do not wish to start payouts before age 70, they need not do anything” and that “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.”
Many, like Derick Choo, feel that it’s a matter of the CPF Board doing the right thing by default:
“I find CPF’s explanation bizarre. If the intent is to make the process seamless and easy for our elders, than the payouts should be made automatic at 65. Only those who want to benefit from the higher interest rates should than be allowed to apply to start payouts from 70. I mean, am I not reading this right?”
CPF’s “opt-out” system has also been slammed by many for being confusing.
Said Dato Sri Alan Lee:
“This does not seem right. We have all assumed payouts start at 65. So the right thing to do is to send every member reaching 65 a letter offering an extension to 70 years old explaining the benefit and let them choose if they want to extend the withdrawal to 70. The baseline should be automatic withdrawal at 65 unless you choose to extend. Too many tweaks to the rules confuse people.”
Some, like Jeyaraj Krishnasam, believe that there the CPF Board is deliberately making things difficult for Singaporeans:
“Playing with words? Hoping that seniors would miss this Opt-out and thus payout at 70 years old, allowing their money to be held longer for… Your guess why they always want to hold our money and implementing compulsory insurance schemes that doesn’t seem to benefit us.”