Publication Type
Journal Article
Version
acceptedVersion
Publication Date
5-2017
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
Asian Studies | Behavioral Economics | Econometrics
Research Areas
Econometrics
Publication
Singapore Economic Review
Volume
66
Issue
5
First Page
1355
Last Page
1371
ISSN
0217-5908
Identifier
10.1142/S0217590817500199
Publisher
World Scientific
Citation
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. 66, (5), 1355-1371.
Available at: https://ink.library.smu.edu.sg/soe_research/2110
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1142/S0217590817500199