Singapore Dealing with Longevity Risk in Its Pensions

Download or read book Singapore Dealing with Longevity Risk in Its Pensions written by Akiko Nomura and published by . This book was released on 2013 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Central Provident Fund (CPF), Singapore's public pension, is a prefunded, defined contribution pension plan. As average longevity increased, policy makers grew concerned over the fact that participants bear the burden from longevity risk, and a new program to annuitize a portion of CPF assets, CPF LIFE, was introduced in 2009. Enrollment was voluntary in the early stages, but starting in January 2013 all participants aged 55 and older who have a minimum amount of assets are enrolled in CPF LIFE. As longevity increases the need for each person to prepare sufficiently for old age becomes greater, and measures to promote the use of private pensions may become more important.