The Central Provident Fund (CPF) is a defined-contribution savings plan forming the key pillar of the pension system in Singapore. The CPF Lifelong Income For the Elderly (LIFE) program, which provides lifetime income for retirees, is a mandatory pension scheme for all Singapore residents. In this paper we construct an actuarial framework to analyze the LIFE program. We use this framework to study the plan payout outcomes with respect to changes in mortality and annuity fund return assumptions. We also examine the effects of some possible changes in the program on the payouts and bequests.
Life annuity, inflation risk, investment returns, longevity risk
Behavioral Economics | Econometrics
Singapore Economic Review
World Scientific Publishing
KWONG, Koon Shing; TSE, Yiu Kuen; and CHAN, Wai-Sum.
Singapore’s LIFE program: Actuarial framework, longevity risk and impact of annuity fund return. (2017). Singapore Economic Review. 63, (1), 1-17. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/2110
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