SINGAPORE: The Ministry of Manpower will form a committee to look into the issue of longevity insurance, said Prime Minister Lee Hsien Loong.

The committee will involve representatives from the unions, insurance companies and social workers to come up with workable proposals.

Talking about the issue at a dialogue organised by Young NTUC, Mr Lee said, "Do you want to have your money when you are still active and able and could actually work? Or is it better to put aside something more so that when you are with dentures and wheelchair, you have a little bit to look after yourself? That's the choice to make."

The prime minister also emphasised that he would like to keep the longevity insurance scheme flexible, basic and cheap.

“I don't want to have anybody who is 85 years old or 90 years old and say ‘my CPF finished, I have no insurance, and now I need to live. And I have nobody to look after me… then what happens?’ That's a problem, therefore we have to deal with this,” said Mr Lee.

The subject of longevity insurance or compulsory annuity has been discussed quite widely ever since the prime minister raised the issue during his National Day Rally speech.

On Saturday, Mr Lee explained why he feels the longevity insurance should not be an opt-out scheme.

"With the longevity insurance we have to be a lot more careful about opting out. The consequences are very far down the road… You need to have enough people in, so that I have a big insurance pool and I have the costs down and everybody can participate and get the benefit. From the point of view of making this scheme work, it is necessary to have everybody in."

More details will be revealed when the Manpower Minister delivers a ministerial statement in Parliament next month. - CNA/ac