Median Amount in CPF Ordinary Accounts of Retirees

Dr Lim Wee Kiak asked the Deputy Prime Minister and Minister for Manpower (a) what is the median amount in Singaporeans' CPF Ordinary Accounts at the age of 62; (b) how many Singaporeans are currently receiving monthly payouts from CPF LIFE and what is the median amount received by them; and (c) how many Singaporeans, upon reaching 62 years of age in 2010, did not have sufficient savings in their CPF accounts to qualify for CPF LIFE.

Mr Tharman Shanmugaratnam: CPF members turning 55 from 2013 onwards and who have $40,000 or more in their CPF Retirement Account (RA) will be automatically included into CPF LIFE. Members with lower balances may opt in. There is no minimum balance to join CPF LIFE.

For older cohorts, those who are aged 55 and older have been able to opt into CPF LIFE since Sep 2009. Many such members are already receiving payouts under the Minimum Sum Scheme or have already finalised their financial arrangements in retirement. Nonetheless, more than 70,000 chose to sign up for CPF LIFE.

Among those members who have signed up for CPF LIFE, about 27,000 have passed their draw-down age and hence have started receiving payouts. As of 1 Oct 2011, the highest payout is $1,280, and the median is $260.

By age 62, many CPF members would have withdrawn any remaining balances in their Ordinary Accounts, and looking at OA balances at this age is not meaningful. The level of balances in the Retirement Account (RA) is more pertinent, since CPF members may join CPF LIFE with their RA balances. As at Dec 2010, the median amount in the RA of Singaporeans aged 62 in cash and property pledge is about $36,000.

Future cohorts will have higher RA balances as the age 55 withdrawal rule, which had allowed members to withdraw 50% of their balances even if the Minimum Sum was not met, is being gradually phased out by 1 Jan 2013.

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