CPF Interest

[TabascoSauce]

There are lots of rich investors who put money into AAA-rated funds with less than 2.5% return. How else do you explain the trillions of dollars in negative-yielding sovereign bonds today? In today's world of negative-yield, AAA-rated 2.5% CPF OA is a godsend. I personally will not touch my CPF and use it for investment even if I have a wonderful investment track record. You never know when disaster hits. For the sake of prudence, I will leave a percentage of my assets in safe funds to generate some income to cover basic expenses. It is my personal responsibility to take care of myself and not burden others.

One reservation I have about CPF is unexpected rule change by the government. It is a risk that all Singaporeans have to put up with but overall, I am happy with CPF so far, particularly in a negative-yielding AAA climate today.

if u hang ard this forum long enough, u will realise many ppl here dont understand the concept of risk. when it comes to investment, the onli measure they can comprehend is returns. weighing the trade off between risk and returns is too much to handle for some.

 

[chopra]

bbc. thanks for ur reply. yes jan 2018 max interest of new BHS is not attainable

 

[dork32]

The govt has other schemes to help such needy people. CPF is not the designated tool, at least based on current policy

why not govt come up with other schemes to help them when they are older instead of now?

 

[Mecisteus]

if a person in his 30s needs the cpf to survive, and nothing is given to him, you dont have to worry about him finding a job in his 50s. He would be dead.

If a person in his 30s needs to rely on the CPF to survive, there is a good chance that his CPF balance is too low. There are many of such people.

Thus, there is a need to have a CPF system to protect this kind of people.

It is rare to find people who has a super high CPF balance and he has no more cash to live at 30s. But under such dire and special situation, CPF ruling may potentially be accommodated to help this special person.