(source: www.mom.gov.sg/publish/momportal/en/general/National_Lifelong_Income_Scheme.html)
Finally the details of a flexible annuity plan administered by CPF Board has been released on 12th Feb 2008. For more details, you can refer to the source stated above.
For old age, there are 2 plans which are considered as "must-have". The first one is a comprehensive Hospitalisation and Surgical Plan. The second one is an Annuity plan (prefably inflation-proof) which provides an income as long as the policyholder lives. Our government has helped us to achieve them.
My comments:
This plan does not address the issue of inflation directly. Inflation can become a "killer" for retirees, if not managed properly. Imagine getting the SAME monthly payout for as long as 25 years (say age 65 to 90).
The government has said that this plan is to provide a basic and steady stream of income for life. It does not intent to cover all expenses during retirement days.
So we still have to think of some other ways to generate income to fund our retirement.
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