Mr Lim said the National Trades Union Congress (NTUC) would also help them upgrade their skills and productivity so they can earn more. -- PHOTO: ST FILE

Being in the Central Provident Fund would allow them to benefit from measures to give Singaporeans a life-long income stream if they live past a certain age, he said.

A committee tasked with designing the national annuity scheme is expected to release its report soon. An annuity is an insurance product in which a peson invests a lump sum in return for a monthly payout for life.

Initial plans were for those under 50 to use part of their CPF money to buy the annuity to get payouts from age 85.

'These recommendations will only be helpful if the workers are part of the CPF network,' said Mr Lim. The bulk of casual and contract workers, such as cleaners and security guards, are aged 40 or older with at most, secondary education.

'In their working life, will they be earning enough, saving enough, to cater for their retirement needs?' he said.

Mr Lim said the National Trades Union Congress (NTUC) would also help them upgrade their skills and productivity so they can earn more.

Last week, Nominated MP Cham Hui Fong, who heads NTUC's Unit for Contract and Casual Workers, said the unit had convinced about 6,000 workers to become CPF contributors.

But NTUC's efforts alone were not enough, said Mr Lim. The committee is drawing up stronger guidelines for employers of such workers and those who engage them.

'We should take this 100,000 number seriously because for every year these workers do not join the CPF network, they are missing out, not just on the Workfare Income Supplement for that year but more importantly, they are missing out this opportunity to save for retirement and later on to benefit from the recommendation of the national longevity insurance committee.' he said.

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