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07 Mar 2019
Central Provident Fund
Suggestion View - 354
CPF Life annuity should be optional

Some 15 years ago, the government formed a committee to study the introduction of CPF Life annuity.

I met the review committee and gave my view - do not make CPF life compulsory, make it attractive.

I wanted the CPF member to have a choice whether or not to invest in CPF Life. It depends on their individual need and preference.

The review committee did not accept my suggestion. They made it compulsory.

They started with giving four complicated options. The CPF member had to buy CPF Life and choose one of the options. It was chaotic. They found it difficult to choose.

Later, the government changed to two options. Still, some people were unhappy that they have to buy CPF Life.

The payout under CPF Life was not transparent. The amount depends on the future investment yield. Some members were suspicious that it was a scheme to make money for the government.

I still hold the view that CPF Life should be made optional, and not compulsory.

If it offers attractive return, compared to a private life annuity, many members may decide to buy it voluntarily. There no need to make it compulsory.

Tan Kin Lian

Remember to give your vote to my suggestion should CPF Life be made voluntary?

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