TODAY, 31 Mar
Voices, Pg 18
We thank Mr Phan Pang Chia for his letter “Why should CPF retirement account last until age of 128?” (March 25). 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.
We have contacted Mr Phan and his wife to explain how the scheme works in detail.
We are enhancing our communication of RSS policies to members, and reviewing the default RSS payout duration.an leave their CPF savings with the CPF Board to earn risk-free interest rates of up to 3.5 per cent and 5 per cent in their Ordinary and Special accounts respectively.
Irene Kang (Ms)
Group Director (Communications)
Central Provident Fund Board
