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This, the Ministry clarified, is to manage retirement savings, as raising the maximum coverage age beyond 65 would result in higher premiums due to higher mortality rates after age 65.
In Singapore's Parliament, the Ministry of Manpower (MOM) has shared that as of 2024, 94,500 Central Provident Fund (CPF) members aged between 65 and 67 years old, or about 33%, are still in employment.
Responding to questions raised by Mariam Jaafar, Member of Parliament, on the Dependants’ Protection Scheme (DPS), MOM said the scheme is reviewed regularly to ensure it continues to meet members’ needs. The last review was in 2021, where the maximum age coverage was raised from 60 to 65.
As such, MOM explained that such decisions are made to strike a balance between providing protection for a longer period and preserving members’ retirement savings. Further raising the maximum coverage age beyond 65 would result in higher premiums, as mortality rates tend to increase after that age. This would reduce members’ savings available for their retirement years.
At the same time, MOM pointed out that DPS lapse rates have remained low and steady at below 0.2% over the past three years.
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