Feasibility of Opting Out of Using Retirement Account Top-up Contributions to Pay CPF LIFE Premiums

Assoc Prof Jamus Jerome Lim asked the Minister for Manpower (a) whether the CPF Board will consider allowing CPF LIFE members topping up their Retirement Accounts (RA) to opt out of using part or all of the top-up amount for paying CPF LIFE premiums, provided that the member has sufficient RA balance for a minimum annuity payout; and (b) if not, why not.

Top-ups to the Retirement Account (RA) which earn the RA's higher long-term interest rate should be committed for the long-term retirement needs of members. CPF LIFE members who top up their RA will thus have their full top-ups streamed out as higher monthly payouts via CPF LIFE throughout their retirement.