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Straits Times
03-07-2025
- Business
- Straits Times
More Singapore residents met CPF Required Retirement Sum when they turned 55 in 2024
Sign up now: Get ST's newsletters delivered to your inbox The retirement sum is used to join CPF Life, which provides members with monthly payouts for life starting any time from age 65 to 70. SINGAPORE – Singaporeans are putting funds aside to beef up their retirement safety nets, noted the Central Provident Fund (CPF) Board's 2024 annual report. It found that more members who turned 55 in 2024 had set aside their Required Retirement Sum than in 2023. Meanwhile, retirement payouts crept above $4 billion in 2024, while the amount of excess savings withdrawn by those 55 and above rose but remained below the 2022 high. There were 39,000 active members who turned 55 in 2024. Around 70 per cent of this cohort set aside the Required Retirement Sum, up from 67.6 per cent in 2023. These members either had the Full Retirement Sum (FRS) in CPF savings, or had at least the Basic Retirement Sum (BRS) and owned a property. Mr Bryan Chan, solutions lead at advisory firm Providend, said the data is encouraging as it shows the proportion has been increasing consistently from 63.6 per cent in 2020 to 70.5 per cent in 2024. Mr Alfred Chia, chief executive of advisory firm SingCapital, said that fewer than half of CPF members met the FRS a decade ago, so these numbers have shown a lot of improvement. Top stories Swipe. Select. Stay informed. Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022 World Liverpool's Portuguese forward Diogo Jota dies in car crash in Spain Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub Singapore $500 in Child LifeSG credits, Edusave, Post-Sec Education Account top-ups to be disbursed in July Business 60 S'pore firms to get AI boost from Tata Consultancy as it launches new innovation centre here The retirement sum is used to join CPF Life, which provides members with monthly payouts for life starting any time from age 65 to 70. The report also noted that $4.4 billion was disbursed to CPF members as retirement payouts, up 29.4 per cent from $3.4 billion in 2023. This worked out to a simple average of about $624 a month for each of the 588,000 members eligible for payouts, up from $552 in 2023 and $532 in 2022. Mr Chan noted that the CPF system is designed to cater to the basic needs of households in the second expenditure quintile. This refers to the group of households with the second-lowest spending in the population. He added that while CPF payouts provide a solid foundation for retirement, CPF savings could be supplemented with other streams of income for a complete retirement provision. Some CPF members might have topped up only to the BRS because they owned a property, so their payouts will be lower, but they have a roof over their heads, Mr Chan said, adding that there are other forms of financial assistance for those in tougher financial positions. Medical expenses are either subsidised or covered by schemes such as MediShield Life and MediFund. The Government has also provided help with general living expenses, such as through ComCare and CDC vouchers. While it aims to help Singaporeans and permanent residents build up their retirement nest eggs, the CPF system is flexible enough so that those aged 55 and above can make withdrawals for immediate cash needs. Members who have met their cohort's FRS can withdraw excess savings in their Ordinary Account (OA), while those who cannot set aside the FRS, or the BRS with a property, can still withdraw up to $5,000. The first group can make as many withdrawals as they like so there is no need to take out all the money at one go. There was $8.4 billion in such withdrawals in 2024, up 3.7 per cent from the $8.1 billion taken out in 2023, but below the high of $8.8 billion in 2022. Mr Chan said such withdrawals should not pose too much concern since these members have already set aside the required amount for retirement, and especially as they remain below 2022's record level. While the CPF is primarily for retirement, it is also designed to serve people's housing and healthcare needs. Members used $25.8 billion from their OA for homes in 2024, up 0.8 per cent from $25.6 billion in 2023. SingCapital's Mr Chia said CPF savings are for retirement, so members should consider using less of this money for their homes. Interest rates have come down, and home owners can borrow at fixed rates of as low as 2.2 per cent, he noted. A home buyer taking a housing loan at 2.2 per cent, while leaving savings in the OA to earn 2.5 per cent interest, has a 0.3 percentage point gain. And those CPF savings compound over time, Mr Chia added, noting: 'When people draw their CPF in and out, they lose the compounding effect.' There were 4.2 million CPF members as at Dec 31, 2024, with total balances of $609.5 billion. They earned $22.4 billion in interest on their savings, up 6.7 per cent from $21 billion in 2023.
AsiaOne
11-06-2025
- Automotive
- AsiaOne
Daily roundup: Polestar 3 Long Range Dual Motor Performance Pack review — and other top stories today, World News
Stay in the know with a recap of our top stories today. 1. Polestar 3 Long Range Dual Motor Performance Pack review: Sporty electric SUV that's big in performance and price Polestar is a brand that likes to do things a bit differently it seems. It first debuted in Singapore in late 2021 with the Polestar 2, a Tesla Model 3 rival but with a raised ride height that made it look like a strange mixed breed between sedan and SUV. It then took over two years before it released its next new model. That was the Polestar 4, a sleek crossover that came with no rear windscreen. It's supposedly meant to be a sporty coupe-SUV, but its bold design choice seemingly defies definition... » READ MORE 2. Jetstar Asia ceasing operations: Passengers scramble to seek refunds, travel plans up in limbo The travel plans of some Jetstar Asia passengers are now up in limbo after the budget carrier announced on Wednesday (June 11) morning it is winding up operations. Among them are university undergraduate Tan and her friends. They had booked round-trip tickets to Bali just days before, but now find themselves in an awkward predicament... » READ MORE 3. Durians for $1.95 at FairPrice annual fair this June Durian lovers have every reason to celebrate with durian season making its return. FairPrice's Annual Durian Fair is back and will be running across two weekends, from June 13 to 15 and June 20 to 22... » READ MORE 4. More seniors to benefit as 3 local banks recognise CPF Life payouts as income proof for credit card applications More seniors aged 65 and above will be able to apply for credit cards as DBS, UOB and OCBC will recognise CPF Life payouts as income proof. According to a statement on Tuesday (June 10), DBS said that the policy kicks in from June 11 (Wednesday)... » READ MORE editor@
New Paper
11-06-2025
- Business
- New Paper
DBS, OCBC and UOB to recognise CPF Life payouts as proof of income in credit card applications
Applicants for DBS, OCBC and UOB credit cards will be able to use their CPF Life payouts as proof of income under policy updates by the banks. Individuals aged 65 and above can do so when they apply for a DBS or OCBC credit card from June 11, while UOB plans to implement the policy in the near future. CPF Life, or CPF Lifelong Income For the Elderly, is an annuity that provides monthly payouts to people based on their savings in their CPF Retirement Account. They can choose to start their payouts from age 65 at the earliest. In formalising the process, DBS said in a statement on June 10 that while some banks do accept CPF Life payouts as income proof on a discretionary basis, the process remains lacking in transparency and assurance. Mr Calvin Ong, DBS' Singapore consumer banking head, said the bank has over 900,000 Singaporean or permanent resident customers aged 65 and above and knows how important CPF payouts are in supporting retirees' daily needs and aspirations. "By recognising the payouts as income, we're making sure seniors continue to have fair access to credit and the cards' accompanying privileges. This move ensures banking remains accessible and meaningful for our senior customers, so they can enjoy a fulfilling retirement," he said. OCBC Bank said in response to The Straits Times' queries that it will allow those aged 65 and above to apply for any OCBC credit card using CPF Life payouts as proof of income from June 11. Mr Joseph Wong, managing director of consumer credit risk management at OCBC, said the number of seniors applying for credit cards is generally low, as most retirees typically already have credit cards. "However, we hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working," he said. Ms Jacquelyn Tan, UOB's head of group personal financial services, told ST that the new policy will be implemented in the "near future", without specifying a timeline. More retirees will be able to benefit from the perks offered by UOB credit cards as they enjoy the fruits of their labour following retirement, she said. The banks' push comes as the Monetary Authority of Singapore (MAS) confirmed that CPF Life payouts can be considered by banks as an income source. MAS rules state that people over 55 must have an annual income of at least $15,000 when applying for unsecured loan facilities such as credit cards, even if they do not have a salary or traditional income. While MAS does not prescribe what income banks must consider when assessing a retiree's eligibility, it says regular payout streams such as rent, interest, dividends or annuity payments from CPF Life or similar products can be considered. Borrowers must prove that they are earning such income in order to qualify. For instance, those who hit the age of 65 in 2025 will receive monthly payouts of up to $1,300, or $15,600 a year, if they had set aside at least $161,000 as their full retirement sum a decade ago. Besides income, individuals over 55 can also qualify for credit cards if they have total net personal assets exceeding $750,000 or if they have a guarantor with an annual income of at least $30,000. The eligibility of older folk for credit cards was highlighted in The Straits Times Forum recently when a 64-year-old retiree wrote about having an existing card cancelled when he tried to increase its credit limit for an overseas holiday.
AsiaOne
11-06-2025
- Business
- AsiaOne
More seniors to benefit as 3 local banks recognise CPF Life payouts as income proof for credit card applications, Money News
More seniors aged 65 and above will be able to apply for credit cards as DBS, UOB and OCBC will recognise CPF Life payouts as income proof. According to a statement on Tuesday (June 10), DBS said that the policy kicks in from June 11 (Wednesday). The move follows the Monetary Authority of Singapore's recent confirmation that banks can consider CPF Life payouts as a valid source of income for retirees above 65 years old interested in applying for unsecured loan facilities, such as credit cards. OCBC Bank will similarly allow seniors aged 65 and above applying for any OCBC credit cards to use CPF Life payouts as income proof beginning June 11, reported The Straits Times (ST). "DBS' official and clear recognition of CPF Life payouts acknowledges these monthly payouts as reliable, lifelong income, giving seniors fairer access to credit options that may have previously been out of reach," the bank said, adding that CPF Life payouts are now on par with other typical income proofs. "We hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working," Joseph Wong, managing director of consumer credit risk management at OCBC said, adding that the number of seniors applying for credit cards in generally low. UOB said it will begin recognising CPF Life payouts as income proof for seniors in the "near future", though a date has not been set. Prior to this, banks would assess income for credit card applications based on salary, rental and investment earnings, while CPF Life payouts were only accepted on a discretionary basis, making it harder for retired seniors to get approval for their applications. The new policy complements findings from a recent DBS study that showed how CPF payouts cover more than half of retirees' expenses, and contributes to the bank's efforts to address the needs of Singapore's ageing population. "By recognising the payouts as income, we're making sure seniors continue to have fair access to credit and the cards' accompanying privileges," said Calvin Ong, Head of Consumer Banking Group at DBS. More retirees will be able to benefit from the perks offered by UOB credit cards as they enjoy the fruits of their labour following retirement, Jacquelyn Tan, UOB's head of group personal financial services, told ST. In April, a 64-year-old wrote in to The Straits Times' forum sharing his experience of being denied a credit card from a local bank despite providing ample proof of income. At the time, he submitted a CPF statement showing that he had exceeded the Enhanced Retirement Sum of $426,000, indicating that he would receive a CPF payout of over $3,000 monthly once he turns 65. The bank denied his application, asking him to provide a bank statement with a cash balance of $750,000 instead. [[nid:718533]]
Business Times
11-06-2025
- Business
- Business Times
DBS, OCBC and UOB to recognise CPF Life payouts as income in credit card applications
[SINGAPORE] – Applicants for DBS, OCBC and UOB credit cards will be able to use their CPF Life payouts as proof of income under policy updates by the banks. Individuals aged 65 and above can do so when they apply for a DBS or OCBC credit card from June 11, while UOB plans to implement the policy in the near future. CPF Life, or CPF Lifelong Income For the Elderly, is an annuity that provides monthly payouts to people based on their savings in their CPF Retirement Account. They can choose to start their payouts from age 65 at the earliest. In formalising the process, DBS said in a statement on June 10 that while some banks do accept CPF Life payouts as income proof on a discretionary basis, the process remains lacking in transparency and assurance. Calvin Ong, DBS' Singapore consumer banking head, said the bank has over 900,000 Singaporean or permanent resident customers aged 65 and above and knows how important CPF payouts are in supporting retirees' daily needs and aspirations. 'By recognising the payouts as income, we're making sure seniors continue to have fair access to credit and the cards' accompanying privileges. This move ensures banking remains accessible and meaningful for our senior customers, so they can enjoy a fulfilling retirement,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up OCBC Bank said in response to queries that it will allow those aged 65 and above to apply for any OCBC credit card using CPF Life payouts as proof of income from June 11. Joseph Wong, managing director of consumer credit risk management at OCBC, said the number of seniors applying for credit cards is generally low, as most retirees typically already have credit cards. 'However, we hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working,' he said. Jacquelyn Tan, UOB's head of group personal financial services, said the new policy will be implemented in the 'near future', without specifying a timeline. More retirees will be able to benefit from the perks offered by UOB credit cards as they enjoy the fruits of their labour following retirement, she said. The banks' push comes as the Monetary Authority of Singapore (MAS) confirmed that CPF Life payouts can be considered by banks as an income source. MAS rules state that people over 55 must have an annual income of at least $15,000 when applying for unsecured loan facilities such as credit cards, even if they do not have a salary or traditional income. While MAS does not prescribe what income banks must consider when assessing a retiree's eligibility, it says regular payout streams such as rent, interest, dividends or annuity payments from CPF Life or similar products can be considered. Borrowers must prove that they are earning such income in order to qualify. For instance, those who hit the age of 65 in 2025 will receive monthly payouts of up to $1,300, or $15,600 a year, if they had set aside at least $161,000 as their full retirement sum a decade ago. Besides income, individuals over 55 can also qualify for credit cards if they have total net personal assets exceeding $750,000 or if they have a guarantor with an annual income of at least $30,000. The eligibility of older folk for credit cards was highlighted in The Straits Times Forum recently when a 64-year-old retiree wrote about having an existing card cancelled when he tried to increase its credit limit for an overseas holiday. THE STRAITS TIMES
