CPF Life payouts can now be used as proof of revenue when making use of for bank cards at DBS and OCBC, with UOB anticipated to undertake the identical coverage quickly, The Straits Instances reported.
From 11 June, Singaporeans and everlasting residents aged 65 and above can use their month-to-month CPF Life payouts to use for bank cards at DBS and OCBC.
UOB has confirmed plans to undertake the change however has not given a selected timeline.
The replace formalises what was beforehand a discretionary observe amongst banks.
DBS stated the transfer goals to extend transparency and guarantee seniors have continued entry to credit score.
The financial institution serves over 900,000 prospects in Singapore who’re aged 65 and above and views CPF Life payouts as a key supply of retirement revenue for this group.
OCBC confirmed that the brand new eligibility applies throughout all its bank cards.
Though few retirees apply for brand new playing cards, since many have already got them, the financial institution stated the coverage is supposed to reassure seniors about entry to credit score after they cease working.
UOB stated its upcoming coverage will assist extra retirees profit from its bank card options.
These updates comply with steerage from the Financial Authority of Singapore (MAS), which permits banks to recognise CPF Life payouts as legitimate revenue when assessing credit score functions.
Underneath MAS guidelines, people aged 55 and above should meet an annual revenue threshold of at the least S$15,000 to qualify for unsecured credit score amenities.
Whereas MAS doesn’t prescribe revenue sources, it has stated common payouts reminiscent of lease, curiosity, dividends, or annuities like CPF Life could also be thought of.
Alternatively, candidates could qualify if they’ve private web belongings exceeding S$750,000 or a guarantor incomes at the least S$30,000 a yr.
The difficulty of retirees’ entry to credit score gained consideration lately after a Straits Instances Discussion board letter highlighted the case of a 64-year-old who had his bank card cancelled when he tried to boost its restrict forward of a visit.
Featured picture: Edited by Fintech Information Singapore, based mostly on picture by chainfoto24 through Freepik
