The CPF Board has responded to a query by Singaporean Phan Pang Chia, who questioned why the fund in his wife’s CPF retirement account should last till she turns 128 years old.
Irene Kang, who’s Group Director (Communications) for the CPF Board, said:
“The Retirement Sum Scheme (RSS) provides members with monthly payouts until their Retirement Account (RA) balances are exhausted.
The payout duration depends on the Central Provident Fund member’s RA balance. Members who have received high amounts of voluntary top-ups to their RA may see a big extension of the duration.
Under such circumstances, members can apply to increase their monthly RSS payouts and shorten the duration. Alternatively, they can join CPF Life, which would provide higher monthly payouts, while ensuring that payouts last for life.”
What this means, in simple terms, is that the amount that Mr Phang’s wife has in her account can last her till she’s 128 years old, with the current monthly payout.
She can choose to increase the payout amount that she receives monthly.
Mr Phang had appeared to be worried that his wife’s CPF money would be locked away, up until her estimated life expectancy was exceeded.