S'POREANS NEED 29 YEARS TO DOUBLE THEIR CPF OA ACCOUNT, ONE OF THE LOWEST RATES IN THE WORLD?

Singaporeans fret about retirement savings

I refer to the article “Most Singaporeans fret about retirement savings: Study” (Straits Times, Aug 22).

35 years to double your money

It states that “it would still take Singaporean investors 35 years to double (their) money in cash, assuming a long-term expected rate of return of 2 per cent”.

The mother of our problems?

The above may underscore the primary problem with our CPF system.

29 years to double your CPF OA?

With the interest rate of the CPF Ordinary Account having remained at just 2.5 per cent since 1999 – using the same calculation (rule of 72) in the remarks of the subject news report – it would take about 29 years (72 divided by 2.5) for your CPF OA money to double.

After inflation … ?

After adjusting for inflation – does it mean that your CPF OA money may hardly grow in real terms, in the long run?

Lowest return in the world?

In this connection, I also understand that the real rate of return on our CPF OA may be the lowest of all national pension funds in the world since 1999.

 

Leong Sze Hian
A.S.S. Contributor

Editor's Note: 

Do you have a story to share? Please use our submission form or email us at editorial@allsingaporestuff.com. If not, why not give us a 'Like'?

Filed Under: 

Tags: 

Advertisement

Your Views