More than one investment option needed to protect against inflation
The payouts that increase over time under a proposed Central Provident Fund (CPF) Life annuity scheme in Spore are aimed at protecting members’ savings against inflation to some degree, but if members want to grow their retirement nest egg for an even stronger buffer against such cost of living hikes, they will need to turn to other options, said experts. An advisory panel looking into enhancements to the CPF system had recommended a new CPF Life option that would see “escalating” payouts at a fixed rate of 2% every year for the rest of a CPF member’s life. The rates on the Special and Retirement Accounts are “considerably better” than those of fixed deposits and the Singapore
