SINGAPORE – Applicants for DBS and OCBC’s credit cards will be able to use their CPF Life payouts as proof of income under a policy update by the banks.

Individuals aged 65 and above can do so from June 11.

CPF Life, or CPF Lifelong Income For the Elderly, is an annuity that provides monthly payouts to people based on their savings in their CPF Retirement Account. They can choose to start their payouts from age 65 at the earliest.

In formalising the process, DBS said in a statement on June 10 that while some banks may accept CPF Life payouts as income proof on a discretionary basis, the process remains lacking in transparency and assurance.

Mr Calvin Ong, DBS’ Singapore consumer banking head, said the bank has over 900,000 Singaporean or permanent resident customers who are aged 65 and above and know how important CPF payouts are in supporting retirees’ daily needs and aspirations.

“By recognising the payouts as income, we’re making sure seniors continue to have fair access to credit and the cards’ accompanying privileges. This move ensures banking remains accessible and meaningful for our senior customers, so they can enjoy a fulfilling retirement,” he said.

OCBC Bank said in response to The Straits Times queries that it will also allow those aged 65 and above to apply for any OCBC credit card using CPF Life payouts as proof of income from June 11.

Mr Joseph Wong, managing director of consumer credit risk management at OCBC, said the number of seniors applying for credit cards is generally low, as most retirees typically already have credit cards.

“However, we hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working,” he said.

The banks’ push comes as the Monetary Authority of Singapore (MAS) confirmed that the CPF Life payout can be considered by banks as an income source.

MAS rules state that those who are over 55 must show they have an annual income of at least $15,000 when applying for new unsecured loan facilities such as credit cards, even if they don’t have a salary or the traditional income required. 

While the MAS does not prescribe what income banks must consider when assessing a retiree’s eligibility, it says that regular payout streams such as re...