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SINGAPORE: More than S$1.2 billion have been committed to the CPF Life scheme, said Minister of State for Manpower Lee Yi Shyan.
The government said a "significant number" of CPF members have opted in within the last two months.
The CPF Life scheme was made available to those aged 55 and above just two months ago, with a choice of four plans that provide a lifelong monthly income.
Some may still be wondering if they should join the scheme. Although there are 700,000 members who will be invited to join CPF Life, about 30,000 have so far signed up.
Mr Lee said: "30,000 is a significant number because in the private sector for people who buy their own annuity programmes, the stock is only about 62,000. So in two months, we have 30,000. This is quite a good number."
Mr Lee also spoke about why some people may not opt in. He said: "Some of them, maybe, they can depend on their family members. Some of them have income from other sources such as property or renting a room out."
However, he added it is important that the government's message of financial planning be taken seriously.
Meanwhile, 33 per cent of those on the scheme will receive their first payout on 5 January 2010. The majority of them have more than S$20,000 in their CPF accounts.
Mr Lee said the government will give out an L-Bonus ranging from S$2,200 to S$4,000 to eligible members. This is to encourage more to take part in the CPF Life scheme.
72 per cent of members have qualified for the L-Bonus, which will cost the government more than S$40 million.
74 per cent also qualified for the V-Bonus or Voluntary Deferment Bonus, amounting to some S$20 million. The V-Bonus is given to members born between 1944 and 1953 whose Draw Down Age is earlier than 65, to help them reduce their longevity risk.
About 53 per cent will get both bonuses.
The government will also give bonuses of more than S$60 million as incentives for the current 30,000 who have opted for CPF Life.
And going forward, the minister said he is confident that more CPF members will join the CPF Life scheme, especially with more outreach programmes being held. - CNA/vm
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