CMFAS M9 Annuities & Other Products question: CPF member chooses to defer the start

CMFAS M9Annuities & Other Products

A CPF member chooses to defer the start of his CPF LIFE payouts beyond his Payout Eligibility Age (up to age 70). What is the effect on his monthly payouts?

A The payouts are reduced by about 2% for each year of deferral
B The payouts are unaffected because deferral only delays, not increases, the income
C The payouts increase by up to about 7% for each year that payouts are deferred
D The member forfeits any payout increase and the CPF Board keeps the extra interest

Show the answer and explanation

Answer: C. The payouts increase by up to about 7% for each year that payouts are deferred

Members may start payouts any time between their Payout Eligibility Age and age 70; for every year of deferred payouts, their CPF LIFE monthly payouts increase by up to about 7%. If not started by age 70, the Board starts them automatically.

Common mistake

Deferral raises payouts (up to ~7% a year), it does not reduce or freeze them; the 2% figure belongs to the Escalating Plan's yearly increase, not deferral.

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Answer: C. The payouts increase by up to about 7% for each year that payouts are deferred

Common mistake

Deferral raises payouts (up to ~7% a year), it does not reduce or freeze them; the 2% figure belongs to the Escalating Plan's yearly increase, not deferral.

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Original study material mapped to the public CMFAS M9 syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.

CMFAS M9 Annuities & Other Products question: CPF member chooses to defer the start

Answer: C. The payouts increase by up to about 7% for each year that payouts are deferred

Common mistake

Related CMFAS M9 questions

CMFAS M9 Annuities & Other Products question: CPF member chooses to defer the start

Answer: C. The payouts increase by up to about 7% for each year that payouts are deferred

Common mistake

Related CMFAS M9 questions