During his Budget 2023 speech on 14 Feb, Deputy Prime Minister Lawrence Wong revealed that the minimum Central Provident Fund (CPF) monthly payout for those not on CPF LIFE, such as those on the Retirement Sum Scheme, will increase from S$250 to S$350 a month.
In addition, the CPF Board will introduce two more measures to assist seniors during their retirement.
These include automatic monthly payouts for those born before 1948 and the boosting of CPF LIFE payouts.
In a press release on Wednesday (15 Feb), CPF Board stated that automatic monthly payouts will be extended to seniors born before 1948.
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Previously, CPF members could instruct the board to begin payouts when they reached 65 years of age.
However, many members neglected to do so. Thus, in 2018, the board introduced a change that ensured seniors born on or after 1948 would automatically receive payouts.
The board added that it is now timely to extend these automatic payouts to those born before 1948.
From June 2023, 85,000 seniors will start receiving payouts in their personal bank accounts in their coming birth month. The board will send them individual notifications beforehand.
According to Channel NewsAsia (CNA), the Retirement Sum Scheme is one of two retirement schemes under the CPF Board which lets seniors receive monthly payouts until their retirement savings are depleted.
The scheme is only applicable to those not on CPF LIFE.
In addition, the CPF Board stated that they will be boosting CPF LIFE payouts with savings in the Ordinary and Special Account (OSA).
Singapore citizens and permanent residents born in or after 1958 will be automatically included in CPF LIFE if they have at least $60,000 in their retirement savings when they start their monthly payouts.
Members who have begun receiving the payout may have also gained subsequent inflows to their OSA.
“If they have not set aside their cohort Full Retirement Sum (FRS), such inflows may not be withdrawable in a lump sum and are meant to be streamed out as monthly payouts,” the board said.
Instead, these members will have to instruct CPF Board to annuities their OSA savings in order to receive a higher CPF LIFE payout.
From Oct 2023, it will be easier for such members to enjoy higher monthly CPF LIFE payouts.
“Any savings in their OSA which cannot be withdrawn in a lump sum will be automatically annuitised for higher CPF LIFE payouts,” the board revealed.
Prior to the annuitisation, members will also receive notifications.
The board added that about 7,000 members currently on CPF LIFE and more in the future will get to enjoy higher monthly payouts for life as a result.
For members who have set aside their cohort FRS, the board assured that they will be able to withdraw their savings in the OSA at any time.
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