According to the Central Provident Fund Board’s website, all interest an individual member accumulates on annuity premiums will be absorbed by CPF Life if they pass away early. The interest will not be passed on to the individual member’s beneficiaries, if they pass on early.
All Singapore Citizens and Permanent Residents born in 1958 or later and have at least S$60,000 in their Retirement Account six months before they reach age 65 are automatically included in the CPF Life scheme. Citizens and PRs who do not meet this requirement can still apply to join the scheme. The scheme, however, will not pay out the interest earned on annuity premiums as part of the bequest. The accumulated interest will instead go into a pooled fund that will be used to fund lifelong payouts to other members of CPF Life:on CPF Board’s website gives a confusing answer to what would be paid out to an individual member’s beneficiaries when they pass on.
Calling this explanation “misleading,” statistician Leong Sze Hian has written in the past that the wording of the explanation