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SINGAPORE: The National Lifelong Income Scheme will take effect in 2013, once approved by the government, said Manpower Minister Ng Eng Hen.
This will allow Singaporeans to draw out monthly income from their CPF accounts from age 65 "for as long as they live".
Statistically, Singaporeans are living longer. It is estimated that by the year 2030, 900,000 Singaporeans will be above 65 years old.
So a major concern for the government is to make sure that Singaporeans are able to manage the costs of living longer.
After touring the Keat Hong division on Sunday, Dr Ng said in a dialogue session with residents that the Lifelong Income Scheme, announced by Professor Lim Pin's committee recently, addresses such concerns.
He said: "It's workable. We've looked further at our sums, and under the old system, if you have half your minimum sum in cash, about S$67,000 under the old system, you get about S$600 (a month) from age 65 to 85, that's it. If we adopt the Lifelong Income Scheme, you will get more or less the same amount – S$600 – but for as long as you live."
Dr Ng said about 60 percent of active CPF members will get at least S$600 a month for life when the scheme is implemented. There are also plans to help others opt into the programme.
But the fundamental issue is to keep the Lifelong Income Scheme sustainable for future generations.
Dr Ng said: "The reason you can pay about the same as the old scheme is due to the extra one percentage point in the CPF that we are now paying. That's why the CPF board is carefully studying the recommendation that they run the scheme because you have to ensure that successive generations of Singaporeans are able to trust you with their money.
"This is one key issue the CPF Board is looking at to make sure everybody understands what the terms are, so that it is always financially viable. We're not talking about a scheme that'll last 10, 20 years. We're talking about a scheme that must last 50, 75, even 100 years."
The committee studying the Lifelong Income Scheme will issue its final report on 12 February, and the government is expected to respond to it shortly after.
- CNA/so
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