SINGAPORE : There is a need for better communication of the CPF changes coming up, and better marketing of the Longevity Insurance Scheme as well. MP for Jalan Besar Dr Lily Neo made this point when she spoke in Parliament in support of the Ministerial Statement on CPF Reforms on Tuesday.
Dr Neo noted that those who live beyond 85 will benefit from the annuity.
They will also get more than what they initially paid for.
Citing the estimates of some actuaries, Dr Neo said a sum of S$4,300 deducted at the age of 55 from the CPF Minimum Sum, when compounded at 5 percent for 30 years, would yield a payout of S$300 from the age of 85 to 100.
This means that at age 87, one would already have received more than what he or she had paid for.
And at the age of 100, one would expect to get S$54,000 or about 13.5 times of the initial outlay.
Dr Neo added, "It is thus imperative that the Manpower Ministry spares no effort in marketing these proposals well to the general public, to allay general concerns and correct misconceptions. It is crucial to the successful implementation of the policy that we market our diamonds as diamonds and not as graphite." - CNA/ms
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