CPeeF LIE Cons $1.2B in 2 Months Woh!

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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published November 18, 2009

</TD></TR><TR><TD vAlign=top width=452 colSpan=2>CPF Life pulls in $1.2b in two months

By GENEVIEVE CUA
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THE CPF Life - CPF's retirement scheme designed with an annuity - has attracted $1.2 billion in just about two months since its launch in September.

To date, some 30,000 members have signed up for it. These qualify for over $60 million in Life (L-Bonus) and Voluntary Deferment bonuses (V-Bonus). The L-Bonus is an incentive to sign on; and the V-Bonus is given to encourage members to defer the payouts.
A CPF spokesman said: 'We are very encouraged by the extremely positive response ... We hope more members will be encouraged to likewise sign up and enjoy an income for life.'
The CPF Life was designed to help provide an income stream for retirees as advances in longevity and medicine suggest that many are likely to outlive their savings.
There are four schemes under the plan - Life Basic, Life Balanced, Life Plus and Life Income - each providing varying combinations of income payout and a bequest. The main distinction from the Minimum Sum Scheme is that the plans will pay an income for life. The MSS provides a relatively higher annuity payout, but is limited to 20 years.
CPF said yesterday that about 55 per cent of participants in the plan are male. Half are between the age of 55 and 59, while a third are between 60 and 64. Most have more than $20,000 in their CPF accounts.
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</TD></TR></TBODY></TABLE>So far, 72 per cent qualify for the L-Bonus, which will cost over $40 million. Some 74 per cent also qualified for the V Bonus, which is given to those born between 1944 and 1953.

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