35 Ms Lee Li Lian asked the Acting Minister for Manpower (a) what is the number and percentage of Singapore citizens born in 1950 and before who are not currently on the CPF LIFEscheme; and (b) how many of these citizens are not in the scheme because they cannot afford to join the scheme.

Mr Tan Chuan-Jin: CPF LIFE was introduced in 2009. It was made mandatory for cohorts turning 55 in 2013. For cohorts who turned 55 before 2013, i.e. born before 1958, participation in CPF LIFE is voluntary. Amongst this group, about 10%, or close to 86,000 members, have opted to join CPF LIFE. 35,000 of these members were born in 1950 or earlier.

Members who do not join CPF LIFE will still be on the Minimum Sum Scheme which means their CPF balances will be drawn down gradually over time but, unlike CPF LIFE, there is no guarantee of an income for life. Affordability is not a barrier to participation in CPF LIFE. CPF members are free to join CPF LIFE prior to age 80 regardless of the size of their CPF balances.

Only 10% opted in?

– Since only about 10% have voluntarily opted to join CPF LIFE – what does that tell you?

That Singaporeans’ confidence level in the CPF LIFE scheme (despite the bonuses for opting in) may be rather low?

That many have so little in their CPF that opting to join CPF LIFE, may give them such a low fixed monthly life annuity from age 65 – that it may not be feasible for them?

For example, how many who reached 55 were not able to meet the Minimum Sum?

Did not answer the question?

In my view, the Minister did not answer the question – as surely the data as to how many of those who turned 55 last year (first year that CPF LIFE is mandatory) is available.

In this regard – how many were able to meet the current Minimum Sum of $148,000?

1 in 8 met Minimum Sum?

In this connection, I estimate that the percentage of Singaporeans who were able to meet the Minimum Sum entirely in cash (from their CPF account balance) when they reached 55, excluding the property pledge,  and including inactive CPF members, may be only about 1 in 8 Singaporeans.

If my estimate is correct – what does it tell you about our CPF scheme?

– That it has arguably, failed miserably to meet Singaporeans’ retirement needs?

Leong Sze Hian