Latest news with #CPFLife
Straits Times
3 days ago
- Business
- Straits Times
How CPF Life can enable retirees above 65 to have new credit cards
Retirees who have planned for high monthly payouts from CPF Life will have no problem meeting the $15,000 annual income threshold. PHOTO: LIANHE ZAOBAO If you have been topping up your CPF Retirement Account to plan for higher payouts from age 65, here's another piece of good news – the lifelong monthly income from CPF Life will give your creditworthiness a boost should you need to apply for a new credit card or loan. Monetary Authority of Singapore (MAS) rules state that people who are over 55 and retired must show they have an annual income of at least $15,000 if applying for an unsecured loan facility such as credit cards. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
4 days ago
- Business
- Straits Times
Banks can consider CPF Life payouts as retirees' income for new unsecured loans: MAS
Retirees above 65 who get decent monthly payouts from CPF Life can qualify for a new credit card if they meet the $15,000 annual income threshold. PHOTO: LIANHE ZAOBAO Banks can consider CPF Life payouts as retirees' income for new unsecured loans: MAS SINGAPORE – Retirees above 65 years old who get decent monthly payouts from CPF Life can qualify for new unsecured loan facilities such as credit cards if they pass the $15,000 annual income threshold set by the Monetary Authority of Singapore (MAS). While MAS does not prescribe specific incomes to assess a borrower's eligibility, it notes that banks can look at regular incomes that retirees get, such as rents, interest or dividend and annuity payouts, such as those from CPF Life or private insurers. But borrowers must show with that they are currently earning such income to qualify. The issue of eligibility of older folk for credit cards was highlighted in The Straits Times Forum recently when 64-year-old retiree Brian Yim wrote about his plight of having an existing card from Trust Bank cancelled just because he wanted to increase its $2,000 credit limit for an overseas holiday. He submitted his Central Provident Fund (CPF) statement, which showed that he had more than the prevailing enhanced retirement sum of $426,000, but the bank asked instead for a bank statement that shows a cash balance of $750,000. An MAS spokesperson told The Straits Times that another qualifying test for retirees above 55 is to have a minimum net worth of $750,000 because if this amount is put in a fixed deposit that earns 2 per cent interest, for instance, the annual income would be $15,000. This means that regular income is still preferred for paying bills. Hence, banks 'may consider various up-to-date income sources, such as a borrower's rental income and annuity payouts', the spokesperson said. ST learnt that most banks do not look at retirees' CPF for credit checks, but this practice is likely to change with MAS' confirmation that the CPF Life payout is a good income source. It would be hard for banks to reject CPF Life payouts since such lifelong income is guaranteed by the Singapore Government. Those reaching 55 in 2025 will get monthly payouts of $1,700, or $20,400 annually, from age 65 if they save $213,000 in their Retirement Account. They can also choose to top up to the maximum of $426,000, for a monthly payout of $3,300, or $39,600 annually. Mr Yim, who turns 65 later this year, says his expected payout would more than exceed MAS' $15,000 threshold but he has no intention of reinstating his Trust credit card. 'I am now happily charging to my five other credit cards that better deserve my business,' he said. Tan Ooi Boon is the Invest editor of The Straits Times. More on this Topic Why high CPF Life payouts means less need to have more savings Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
4 days ago
- Business
- Straits Times
Why high CPF Life payouts means less need to have more savings
High CPF Life monthly payouts of up to $3,300 should help retirees pay for most of their expenses without having to dip into their savings. PHOTO: LIANHE ZAOBAO If you have planned for higher monthly payouts from CPF Life, you will probably not run out of money in your old age, even if you don't have a high amount saved. This is because payments of up to $3,300 a month should help retirees meet most of their expenses without having to dip into their nest-eggs. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
21-04-2025
- Health
- Straits Times
‘A tremendous asset to the team': PM Wong on Ng Eng Hen
PM Lawrence Wong (centre, left) with Defence Minister Ng Eng Hen and Transport Minister Chee Hong Tat at the Bishan-Toa Payoh and Marymount Hari Raya celebration at Plaza@128 on April 19. ST PHOTO: ARIFFIN JAMAR SINGAPORE - Defence Minister Ng Eng Hen was a tremendous asset to Singapore's Cabinet, and made a difference for the country and its people across the portfolios he helmed, said Prime Minister Lawrence Wong. In a valedictory letter to Dr Ng on April 21, PM Wong expressed his deep appreciation for the former minister's contributions since entering politics in 2001 as part of the PAP's slate in Bishan-Toa Payoh GRC. A surgical oncologist by training, Dr Ng served as Minister for Manpower and Minister for Education before he became Defence Minister in 2011. PM Wong noted that Dr Ng left a successful surgical career and started at the Ministry of Manpower during a challenging period, as Singapore was then recovering from the severe acute respiratory syndrome (Sars) outbreak. Working closely with tripartite partners, he uplifted lower-wage workers, improved job security, and enhanced workplace safety. 'You spearheaded major reforms to reduce workplace injuries and fatalities and introduced the Workplace Safety and Health Act,' said PM Wong. 'Recognising the need for lifelong learning, you set up the Workforce Development Agency (now Workforce Singapore) to help workers reskill and upskill, so they can always have good jobs.' PM Wong also highlighted Dr Ng's foresight in championing longevity insurance, which paved the way for the CPF Life scheme that now provides Singaporeans with greater financial security in retirement. As Minister for Education, Dr Ng expanded tertiary pathways for students here, and established the Singapore University of Technology and Design to train future leaders to serve society through innovative work in design and technology. He strengthened the Polytechnic-Foreign Specialised Institution initiative, which paved the way for the Singapore Institute of Technology, and oversaw the creation of NTU's Lee Kong Chian School of Medicine, said PM Wong. Dr Ng also supported educators and their professional development when he helped set up the Academy of Singapore Teachers. But it is in defence that Dr Ng is best known, noted PM Wong. Dr Ng was appointed Second Minister for Defence in 2005, and helmed the ministry from 2011. As Defence Minister, he guided the modernisation of the Singapore Armed Forces (SAF) and ensured it stayed ahead in a more complex threat environment and despite fast-moving technological shifts. Under Dr Ng's leadership, the SAF acquired and developed next generation capabilities, from F-35 fighter jets and Invincible-class submarines to unmanned systems. He also led the establishment of the Digital and Intelligence Service, a full-fledged fourth branch of the SAF, which strengthened Singapore's capabilities in the digital, cyber and information domains. The SAF not only stood ready for battle, but proved its worth in peacetime when it played a critical role in supporting Singapore's Covid-19 response, added PM Wong. Regionally, the SAF led cooperation platforms like the Regional Humanitarian Assistance and Disaster Relief Coordination Centre and Counter Terrorism Information Centre. It also delivered critical assistance globally, including most recently humanitarian support for civilians in Gaza. Dr Ng never forgot that people form the heart of the SAF, and he championed realistic training while improving safety for soldiers, the prime minister added. Besides overseeing the development of Safti City for realistic urban warfare training, he set up the Inspector-General's office to strengthen safety in the SAF, and established the SAF Volunteer Corps so that the broader community could contribute directly to defence. PM Wong said Dr Ng also made a strong mark on the international stage as Singapore's chief defence diplomat respected by counterparts for his clarity of thought and incisive assessments. 'Through your efforts, Singapore built strong defence ties around the world, expanded our strategic space and strengthened our standing globally,' he said. Within Cabinet, Dr Ng was known for his thoughtful perspectives, and for getting to the heart of the matter whatever the subject. 'You were steady in crises, thoughtful in analysing problems, and bold in imagining fresh possibilities. You brought weight and steadiness to our deliberations, and you have been a tremendous asset to the team,' said PM Wong. PM Wong also recounted his monthly lunches with Dr Ng when he was Minister of State for Defence in his early years in politics, and that many younger ministers looked up to Dr Ng as both a role model and someone they could turn to for advice and encouragement. Dr Ng also served as Leader of the House from 2011 to 2015, and was a steady anchor and Bishan-Toa Payoh's longest-serving MP, deeply committed to his residents' well-being, he added. 'In these and many other ways, you have shaped Singapore. On behalf of all Singaporeans, I thank you for your dedication and service,' said PM Wong. Senior Minister Lee Hsien Loong also paid tribute to Dr Ng on April 21, and said he was 'clear, logical, and decisive, as one might expect from a former surgeon'. 'Initially, politics and public policy were unfamiliar fields to him, but he learnt quickly,' said SM Lee. 'He was steady in crises, and steadfast over the long term. In Cabinet, whatever the subject under discussion, I always valued his views.' Join ST's WhatsApp Channel and get the latest news and must-reads.
