1. Higher return on CPF savings by 1% point for the first $20,000 in the Ordinary Account, and up to a cap of S$60,000 for all CPF accounts combined. This portion of money is not allowed for use for the CPF investment after 1st January 2008 because the Government will treat it like retirement funds. CPF members who have already made investments using their OA or SA will not be required to sell their investments.
2. Removing of the 4% guarantee and float the interest rate of the CPF Special, Medisave and Retirement Accounts pegged to the yield of 10 year Singapore Government Securities and an extra 1% would be added to this rate. There will be fluctuation but it’ll be less volatile than the stock market.
3. Draw down age for CPF minimum sum to be raised progressively to 65. This will take effect in year 2012.
4. Eldershield Supplements can be added to your existing eldershield to cover for any 3 of the 6 ADLs for life time up to $400 monthly extra when it occurs (ie total of $300 existing + $400 newly added = $700 monthly)
5. Tail-end annuity implemented for those below 50 years old implemented by govt. Those above 50 years old are not affected, and are strongly encouraged to take up.
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