By Cai Haoxiang

Close to 12,000 people have signed up for the new Central Provident Fund (CPF) annuity scheme opened last month to Singaporeans and permanent residents aged 55 and older.

Minister of State (Trade and Industry and Manpower) Lee Yi Shyan last night described the number signing up for CPF Life as encouraging.

Speaking on the sidelines of the launch of an elderly fitness corner in Bedok, he noted that 571 applicants had received or made top-ups averaging $21,000 to their accounts.

This indicated that people were making plans for their future and wanted to enjoy a lifelong income stream, he said.

CPF Life will apply automatically to those who turn 55 from 2013, with at least $40,000 in their CPF savings. About 70 per cent of CPF members (who turn 55 in 2013) will qualify.

But last month's earlier opt-in date was announced in response to requests from older CPF members who want to join ahead of 2013.

To encourage people to sign up earlier, a bonus of up to $4,000 will be given to Singapore citizens who do so by December next year.

To be eligible, their annual income cannot exceed $54,000 and the annual value of their property must not be more than $11,000.

CPF Life was unveiled in February last year to help tackle the problem of an ageing population, with people's retirement savings not keeping pace with longer life spans.

The scheme consists of four plans that vary in the level of monthly income and the amount left behind for loved ones.

It provides a steady stream of retirement income for life, instead of 20 years under the current Minimum Sum Scheme.

The most popular plan so far, Mr Lee said, is Life Plus. It gives a higher payout but the beneficiaries get less.

Asked if the number signing up was small, he said the 11,787 who did so over the past month was more than the 6,000 annuity policies sold by the insurance industry for the whole of last year.

Since early last month, the CPF Board had mailed invitations to 200,000 people eligible for the early opt-in. It will invite a further 500,000 who are eligible by the end of the month.

It will also be organising roadshows to promote CPF Life.

Mr Lee encouraged CPF members to top up their accounts if they do not have the minimum requirement, or top up the accounts of family members who are interested.

Employers were also urged to top up the accounts of their staff. He noted that since November last year, bosses who did so would enjoy tax rebates for the top-up amount.

This article was first published in The Straits Times.