Even I’m pretty skeptical at how old I could live till, but our Government now expect a typical Singaporean life expectancy to be at 80. With that, the Government introduces a new scheme, CPF Life
We can still pak tor when we’re 80! (photo: magictoast)
With 12 types of annuity plans to choose from, Singaporeans who are aged 50 and below for now are set to get a steady retirement income till death. Payouts can start from as early as 65 or as late as 90 (my god, that’s a little ridiculous). And if you do not choose a option, the default for payout to start will be set at age 80.
CPF will be the sole Financial Institution and Government Board to manage CPF Life.
The scheme will be rolled out in 2013, 5 years from now.
What it means to us:
Social security during old age is a plus point, but that probably means setting more aside for the existing CPF minimum sum component where the premiums will be deducted from.
Psychologically, I’m not too sure about setting an age an an option which is not changeable once you’ve set it. Like with the refund or non-refund option to family, would we because of CPF Life target to live longer just to care about the payouts?
This is bewildering.
Everyone should probably get a copy of Straits Times and read on the 10 FAQs covering most questions that a typical citizen would ask. Also, this PDF file from Channel News Asia would probably cover your doubts with scenarios and explanations.