Older S'poreans Not Automatically Covered Under CPF Life Want To Opt In

Source : Channel NewsAsia, 13 February 2008

What do older Singaporeans not automatically covered under the new CPF Life annuity plan think about the scheme? Will they opt in? Two such Singaporeans Channel NewsAsia spoke to say they will do so.

This echoes Manpower Minister Ng Eng Hen's confidence that many such citizens will want to sign up for the scheme voluntarily.

65-year-old management consultant Ernest Chen, one of the older Singaporeans who want to opt in for the scheme, said: "Perhaps by the year... (I'm) 85 or 75 or even earlier, I can take a bit of money out and enjoy the harvest... I think it's pretty good.

"I'm only concerned about why they only introduce (the scheme) in 2013. Why not next year? What's the fuss of doing it? If they do it early, and if they think they need to polish up or do a little bit of changing, why not along the way, make the changes? So do it next year, don't wait."

Will he encourage others to opt into the scheme?

"Many people, they are not financially tuned to know what to do with the money. Sometimes they may invest elsewhere and they lose their money. It's better to leave it to the government. As long as they do it fairly for the people, the nation, I believe this is a good scheme," said Mr Chen.

Another one who wants to opt in for the scheme is businessman Chua Lai Teck. He said that he will consider a few factors before deciding his CPF Life payout age.

These include discussions with friends on what they are choosing and what his financial situation will be like when he hits 55 years old.

Right now, Mr Chua said, he has enough cash savings to last him for at least the next 20 years. So he will not depend solely on CPF Life.

But Mr Chua said the government may want to reconsider the age when eligible CPF members must decide when they want the annuity payouts to start. CPF Life participants have to decide on this when they turn 55.

Mr Chua said: "Personally I think the government doesn't need to jump in too early. You're talking about 65 (the earliest age for the annuity payouts to start), you're still healthy, still can work, and people are living till 85 years and above. I think we should, if we can, pull it back to 60, 65 years old to decide." - CNA/ir