Tag Archives: Interest Rates

S’POREANS MONEY NO ENOUGH FOR RETIREMENT, LOW CPF INTEREST RATES TO BLAME?

I think there seems to be something not quite right because one would need an annualised return of about 7.9 per cent in order for $300 monthly to accumulate to $1 million from age 25’to 65. If its from age 35, the returns would have to be even higher at about 11.8 per cent. How realistic is it to expect a return of 11.8 or 7.9 per cent? Two-thirds of retirees – 66 per cent – said they wished they had started planning for retirement earlier, with 65 per cent indicating that they do not expect their savings to last throughout retirement” – the dominant factor why Singaporeans have so little when they retire, is arguably the low CPF interest rates.

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MALAYSIA’S EPF DISTRIBUTES 6.75% DIVIDEND WHILE CPF ONLY GIVES 4% INTEREST

The Malaysian Employees Provident Fund (EPF) will declare a dividend of 6.75% for last year to its 14 million members, sources said. The payment was the highest since 1999, when the dividend was 6.84%, the source said. On the other hand, even though Temasek Holdings claims to have made an average of 16% profits per annum since its inception, CPF, Singapore's equivalent of the Malaysian EPF has stuck to its 3.5% to 4% interest rates for Singaporeans.

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