The Government announced the CPF Life scheme sometime last year with mixed responses. What the CPF Life scheme does is to lock up part of  your CPF minimum sum away to fund an annuity, upon which the payouts from age 82 or 85 (depending on your draw down age) and above would come from this annuity.

Under the old CPF scheme, your CPF minimum sum would fund your retirement for 20 years from the draw-down age. But if you out-live that time and have no-other sources of retirement income or savings, then you would be a burden to society.

The CPF Life scheme was meant to address that issue by forcing you to buy an annuity whether you like it or not to fund the remaining years of your retirement living. Continue reading →

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