Can you lose money by doing nothing with your CPF OA?
From 1961 to 2024, Singapore’s average inflation was 2.6% and in the past 4 years 3.9%. This is the pace at which the
cost of living is rising and it is often greater than the 2.5% threshold of the CPF Ordinary Account (CPF-OA). Put another way, the value of your OA balance in real terms, if left alone, has been declining by -1.4% on average for the past 4 years. That is a sobering thought. In 2023, as interest rates spiked, CPF members pulled an unprecedented S$5.9 billion into their CPF-Investment Scheme. The total net amount withdrawn for CPF-IS from 2022 to the second quarter of 2024 is S$9.6 billion – the largest in its history. The total balance stood at S$27.2 billion at the end of that period, a growth of 58% in less than two years. CPF...