BBCWatcher
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Henry, the maximum age policy is new and applies to everyone now. It’s not unique to CPF LIFE. Up until not too long ago it was possible for CPF members to avoid drawing down their retirement savings forever. Not any more. Members who turn age 70 in 2018 (or later), including old RSS participants, are subject to the age 70 maximum now. (See here: “Can I defer my monthly payout?”)'some well-to-do CPF members used to do' or intend to do? The first batch (born in 1958) under mandatory CPF Life has not even reached PEA in 2023.
That’s another policy change, and perhaps you missed that, too. And it has nothing to do with the Enhanced Nomination Scheme. The old rule allowed an heir to keep CPF funds in the decedent’s account forever, earning attractive above market interest, and available for withdrawal on demand. That’s no longer the case. Now, under the new policy (as I recall), the decedent’s funds will earn OA interest for 6 months after the member dies, then zero.And there is nothing clever about enhanced nomination scheme, though it may serve the purpose of 'some' members, and they do so not for the sake of higher interest rates.
It was a lovely “hack,” to just let those CPF funds stay in the decedent’s account. The government closed that loophole only recently.
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