CPF Board recently came up with a new second inclusion point of $60k at the draw-down age (DDA) for the CPF Life scheme.
The DDA is the age at which members are allowed to withdraw their CPF savings in the form of monthly payouts. The DDA for members who turned 55 from 1999 to 2004 is 62. This has been gradually increased to 65 for those who turned 55 in 2009.
Previously, only CPF members born in 1958 or later with at least $40,000 in their Retirement Account (RA) at age 55 will be automatically included in CPF LIFE with effect from 2013. Those with less than $40,000 will not be automatically included at 55.
To help these members participate in CPF LIFE and enjoy an income for as long as they live, members will be automatically included at DDA if they have $60,000 in their RA then. This might happen because some members may subsequently have significant RA inflows between 55 and the DDA.
This latest move by the CPF Board will increase the pool of people in the CPF Life scheme as it will now be able to “compulsory acquire” people who did not had $40k at 55 but had $60k at the DDA.