a) It is a good scheme, as it provides the security of a lifetime income through pooling longevity risk
b) The Government gives a bonus of $4,000 for people (except the wealthy) to join the scheme
c) The annuity gives an imputed interest rate of 3.75% to 4%, which is attractive compared to the market return on low risk investments
Some of the remarks made by people who dislike the CPF Life are:
a) The Government will keep the money and may not pay it back
b) The Government makes a profit when the annuitant dies at an early age
c) The scheme will have a big surplus due to the low payout (based on the experience of other Government schemes)
I hope that these points can be addressed by the Government and that people can learn to trust the Government.
a) The Government will keep the money and may not pay it back
b) The Government makes a profit when the annuitant dies at an early age
c) The scheme will have a big surplus due to the low payout (based on the experience of other Government schemes)
I hope that these points can be addressed by the Government and that people can learn to trust the Government.
Tan Kin Lian
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