Why market returns can run ahead of CPF OA rate

Samuel Rhee, Chairman and CIO of Endowus highlights that the fear of investment loss has deterred most CPF members from investing, however OA interest rate has also consistently lagged behind inflation rates. The failure to invest one’s CPF savings can erode one’s retirement nest egg. While many have taken to investing in T-bills, it is not a suitable long-term solution. To overcome fear and build wealth meaningfully over the long term, CPF members should invest on a regular basis into a core, diversified portfolio with an evidence-based approach, and without taking unnecessary concentration risk.