Singapore News

News from Singapore

CPF retirement accounts benefit those earning under $40,000

Posted by jtsmyth8 on February 12, 2008

Workers with less than $40,000 in their CPF retirement accounts when they turn 55 will be exempted from the new CPF Life scheme, as their balances are not enough for payouts to last a lifetime. A quarter of the first cohort to be covered – that is, those who turn 50 this year – will fall into this category.

But they can choose to opt into the scheme, and will get help to do so, said the committee that designed the scheme.

It said there had been public feedback that those with insufficient CPF savings could be helped to join the scheme.

Said National Longevity Insurance Committee chairman Lim Pin on Tuesday: ‘We also strongly believe in the value and importance of this scheme that we have made a request for the (Manpower) Minister, the Government… to consider giving some assistance to enable people who do not now have the threshold sum of $40,000 to join the scheme. That will be handled.’ (story)


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