Publication Type

Journal Article

Publication Date

11-2017

Abstract

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.

Keywords

Life annuity, inflation risk, investment returns, longevity risk

Discipline

Behavioral Economics | Econometrics

Research Areas

Econometrics

Publication

Singapore Economic Review

Volume

63

Issue

1

First Page

1

Last Page

17

ISSN

0217-5908

Identifier

10.1142/S0217590817500199

Publisher

World Scientific Publishing

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

https://doi.org/10.1142/S0217590817500199

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