On the risks of inflation and longevity: Why we need to invest our CPF savings

THE impending changes to the Central Provident Fund (CPF), recently announced in the Budget, have caused quite a stir. Through all the debate and discussion, it’s important to remember that CPF is a tool that every Singaporean should personalise and take advantage of.

It is a critically important resource that members can control to effectively grow their personal savings and wealth, whether through the CPF Investment Scheme (CPFIS), or later through CPF Life.

Investing is an important aspect of securing the financial future of individuals and their loved ones. And investing through the CPFIS is an increasingly important way to build a bigger nest egg – whether through safer and less risky instruments such as Treasury bills (T-bills); or fixed-income funds that offer higher interest rates comparable to the Special Account (SA) interest rate; or through more risky investments in equities; or longer-duration fixed income to grow wealth through compounding.