Debated in Parliament on 13 Feb 2015.
Mr Gerald Giam Yean Song asked the Minister for Manpower (a) what is the average monthly annuity payment, by decile, that will be drawn by CPF LIFE members once they reach the drawdown age in 2015; and (b) what is the average monthly annuity payment forecast for the next three years based on extrapolating current trends.
Central Provident Fund (CPF) members turning age 55 from 2013 with at least $40,000 in their Retirement Account (RA) at age 55 or $60,000 in their RA at age 65 will be automatically included in CPF LIFE. Mainstream members in the first cohort to be automatically included will only commence their monthly payouts from CPF LIFE from 2023. CPF members who are currently receiving a monthly payout from CPF LIFE have chosen to opt in.
For the cohort of CPF members who reached their drawdown age of 63 in 2014 and are eligible to draw down on their savings, 15% have opted into CPF LIFE. The median monthly CPF LIFE payout among them was $394. It is not meaningful to extrapolate future CPF LIFE payouts for successive cohorts because the distribution of payouts is dependent on the average balances of members who have chosen to opt in. However, CPF balances have been improving over time, and CPF LIFE payouts for successive cohorts will also increase correspondingly.
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