Compulsory Annuity in Singapore?

Fri, Feb 1, 2008

Insurance

The need for an annuity plan was announced by Prime Minister Lee Hsien Loong at last year’s National Day Rally.

The issue became a hotly debated topic in coffeeshops, online forums….simply everywhere. 🙂

Everyone is talking about it.

Some complained “CPF is our money.The government should not retrict the usage of our very own money. We are educated enough to make decisions”.

Some complied “This is an ideal plan. Singaporeans are living longer and they will need money till death”.

Some grumbled ” What? Payout at age 85? Who will live till that age? Arrggggghhh….. You mean, if I die during the annuity payout, and there is a remaining balance, all my money burnt? My family wont get the remaining amount?”

While some choose to be bo chap oblivious of the whole annuity tingy.

After analysing the whole situation, practical ideas were proposed.

1) New Name

National Life-long Income Scheme instead of National Longetivity Insurance Scheme.

Some people are allergic to the word “insurance”.

Guess, National Life-long Income Scheme sounds more better 🙂

2) Giving refunds

Premiums will be refundable for those who die early.

Money to be returned to their families.

3) Being flexible

People to be given choice on when to start receiving payouts.

4) Earlier payout age

If they fail to make a choice, the default plan is that they will start getting payout from age 80, instead of 85 as proposed earlier.

5) Different Operator

CPF Board to administer the scheme instead of private-sector company, as it is a “trusted partner” and can absorb administrative costs.

 

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- who has written 421 posts on The Official Helmi Hakim Website.

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

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