CPF Life payouts can now be used as proof of income when applying for credit cards at DBS and OCBC, with UOB expected to adopt the same policy soon, The Straits Times reported.
From 11 June, Singaporeans and permanent residents aged 65 and above can use their monthly CPF Life payouts to apply for credit cards at DBS and OCBC.
UOB has confirmed plans to adopt the change but has not given a specific timeline.
The update formalises what was previously a discretionary practice among banks.
DBS said the move aims to increase transparency and ensure seniors have continued access to credit.
The bank serves over 900,000 customers in Singapore who are aged 65 and above and views CPF Life payouts as a key source of retirement income for this group.
OCBC confirmed that the new eligibility applies across all its credit cards.
Although few retirees apply for new cards, since many already have them, the bank said the policy is meant to reassure seniors about access to credit after they stop working.
UOB said its upcoming policy will help more retirees benefit from its credit card features.
These updates follow guidance from the Monetary Authority of Singapore (MAS), which allows banks to recognise CPF Life payouts as valid income when assessing credit applications.
Under MAS rules, individuals aged 55 and above must meet an annual income threshold of at least S$15,000 to qualify for unsecured credit facilities.
While MAS does not prescribe income sources, it has said regular payouts such as rent, interest, dividends, or annuities like CPF Life may be considered.
Alternatively, applicants may qualify if they have personal net assets exceeding S$750,000 or a guarantor earning at least S$30,000 a year.
The issue of retirees’ access to credit gained attention recently after a Straits Times Forum letter highlighted the case of a 64-year-old who had his credit card cancelled when he tried to raise its limit ahead of a trip.
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