DBS Bank has announced a pioneering move to formally recognise CPF LIFE payouts as income for credit card applications, starting 11 June. This initiative aims to provide seniors aged 65 and above with clearer income recognition, enabling them to access credit options that were previously less accessible. Traditionally, banks have assessed credit card eligibility based on salary, rental, and investment income, with CPF LIFE payouts considered only on a discretionary basis.
This change follows the Monetary Authority of Singapore’s recent confirmation that CPF LIFE payouts can be considered a valid income source for retirees seeking unsecured loans, such as credit cards. Calvin Ong, Head of Consumer Banking Group at DBS Singapore, stated, “By recognising the payouts as income, we’re making sure seniors continue to have fair access to credit and the cards’ accompanying privileges.”
DBS remains the only bank to include CPF payouts in its “Bank & Earn” programme, allowing seniors to qualify for higher interest rates. This policy aligns with DBS’ broader strategy to support Singapore’s ageing population, as a recent report highlighted that CPF payouts cover more than half of retirees’ expenses.
Seniors can apply for credit cards using CPF LIFE payouts by visiting any DBS/POSB branch and submitting their CPF monthly payouts history or bank statements. This initiative is part of DBS’ ongoing commitment to financial inclusion and supporting retirees in maintaining financial independence and dignity.
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