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I REFER to last Friday's letter by Mr Manuel Nathan, 'State assured minimum sum for CPF Life'.
CPF Life is designed to provide members with lifelong income. For greater stability in retirement income, Life monies are invested in special government bonds paying fixed coupon rates for longer periods than today.
Life funds will earn the weighted average interest rate of the entire portfolio of bonds and every Life member will enjoy the same rate.
It is not meaningful to compare CPF Life with other annuity schemes as they are designed on different premises.
We would also like to assure Mr Nathan and all Central Provident Fund members that the same mortality experience will apply to all four CPF Life plans.
Members who sign up for CPF Life can rest assured they will receive payouts for as long as they live.
Lo Tak Wah
Director (Retirement and Investment)
Central Provident Fund Board
This article was first published in The Straits Times.
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