I don't know how to put this, but something doesn't look
right.
I use the calculator provided by CPF, with a $40,000 principal,
they will be paying me average of $373 a month for 20 years (I
assume it's 20 years because the graph is between 80 to 90).
$373 x 12 months x 20 years = $89,520
The annuity would need to be making 9.30% for it to pay that
kind of money, so that at the end of 20 years, the initial $40,000
would be reduced to $0.
Seriously, it seems too good to be true, perhaps I made a wrong
assumption somewhere. 
Perhaps there is a catch somewhere.
They were claiming that
“Temasek reported in 2008 that profit exceeded the average 18
percent annual return on investment” - with that kind of
results, it will be "peanuts" to pay the amount as claimed.
Then again, this 2008 achievements was due in part to the sale
of Singapore Powers that resulted in an electrifying surge in
Temasek's profits numbers. How many power asset sales can Temasek
perform to make this an annual affair ?
It is all about ‘Risk
vs Uncertainty’ - and all based on some mathematical
model that allow Insurance Company to make the money, that they
will find a way forwards by sharing the downside risks through
sub-insurance.
How many Singaporeans will live beyond 82 years of age ?
Based on the insurance table of risks those who moved on at the
age of 60 and younger, will lose out the most; while those who live
till past 100 years of age - will out live the ability of the
insurer's program to support.
This could well lead to the insurers to "roll over" the program
that will be funded through some other creative ways that will
allow the insurers to continue to tap the monetary source.
The biggest fear of the insurers is that the money flow will dry
up.
As long as the money flow continue, the game will always be
played according to custom tailored conditions for every different
purpose.
