THERE will be no shortage of ideas for Professor Lim Pin to ponder when his new committee to design the national longevity insurance scheme meets.
The second day of debates in Parliament threw up many suggestions from 14 MPs on how to make the annuity scheme as attractive as possible to the masses.
The plan is to have Central Provident Fund (CPF) members purchase an annuity when they turn 55, using a small portion of their minimum sum. The annuity will begin paying out, at age 85 when the minimum sum is depleted, a monthly sum until they die.
Nominated MP Kalyani Mehta argued that it did not make sense to pay out only at age 85, when Singapore's average life expectancy was currently 80 years. She proposed paying out from age 80 so more could benefit.
Figures from the Department of Statistics show that half of Singaporeans currently aged 62 will live to 85.
She also had doubts about the usefulness of the monthly payout amount of $250 to $300.
"What use would such a paltry sum be to an 85-year-old? It cannot even cover his food and transport. Are we assuming his family is prepared to foot his bills?
"Not everyone at that age would have a family. Even if they did, their children would also be about 65 and require financial security themselves," she said.
Ms Josephine Teo (Bishan-Toa Payoh GRC) suggested paying for this longevity insurance directly using the Deferment and Voluntary Deferment Bonuses — a one-off amount to be given out in view of the upcoming delay in drawing down the minimum sum.
Madam Cynthia Phua (Jalan Besar GRC) proposed paying the lump sum over 10 years, so members pay less up front.
Prof Lim's committee will submit its report within six months.
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