A new committee will be set up to study the National Longevity Insurance Scheme, which is better known as "annuity". Manpower Minister Dr Ng Eng Hen said in Parliament that this committee will be chaired by National Wages Council Chairman Professor Lim Pin, and members will include academics, grassroots leaders, unions and non-governmental organisations.
The committee is expected to come up with a report in six months.
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New Committee Formed To Study Annuity Scheme
Dr Ng said longevity insurance is the cheapest way to ensure that Singaporeans do not run out of savings prematurely, so the government wants to put into place a national scheme that provides basic longevity protection for CPF members.
He said: "When you buy a longevity insurance, which is a deferred annuity, you will receive a monthly income from a pre-determined age... for as long as you live.
"It is right to require CPF members to make financial provision for the eventuality that they live longer than expected. By then, they certainly will not be able to work and may have no family members to depend on. This is the basic goal in devising a national longevity insurance scheme."
So the government will require CPF members to take up some form of annuity, or longevity insurance scheme, by using a small part of their retirement account.
Premiums will be adjusted according to risks. - CNA/ac
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