If I had a dollar for every time someone complained about CPF, I could probably retire… but only if I put 20% of it into CPF.
I once met a 72-year-old who told me: “If not for CPF, I’d have nothing.”
That stuck with me.
Because while many younger Singaporeans see CPF as a burden, for many older ones, it’s the only reason they’re not broke today.
CPF just turned 70.
What began in 1955 as a simple retirement pot has evolved into a broad social security engine for retirement, housing, and healthcare – and is internationally rated among the better systems globally.
But locally, the complaints keep adding up.
Older Singaporeans often praise CPF’s reliability and interest, while many younger workers feel squeezed – 20% of salary is locked up, yet rents, caregiving, and day-to-day costs bite now.
Policy has kept shifting with the times: a 4% floor on Special/Medisave/Retirement Accounts has been extended through 2025 to give certainty; total contributions for under-55s sit at 37% (20% employee, 17% employer); and from Jan 1, 2026, rates for those aged >55 to 65 will rise another 1.5 percentage points.
Meanwhile, platform workers are being brought into the CPF fold to improve housing and retirement adequacy.
So we have a system that’s generous on guaranteed interest (especially versus cash or low-yield deposits), increasingly inclusive (gig workers), and still controversial (liquidity, access, and changing rules).
That’s the CPF story at 70: durable, evolving, and occasionally divisive. 🙃
Here’s where I often hear grievances about CPF.
Younger workers aren’t “anti-saving” – they’re cash-flow constrained. A high mandatory save rate plus high living costs can push them into costly short-term debt, which silently erodes the long-term benefit of compounding.
The system protects tomorrow, but can backfire if it creates expensive borrowing today.
Many Singaporeans feel this way.
Like what Triple H says;
Yes, our ability to use CPF for housing built national wealth and pride, but it also concentrated retirement savings in a single, illiquid asset.
That works when home values rise and health is good; it’s tougher when the new generation can’t seem to afford housing…
My take – after 6 years of Dollar Bureau
Now, let me be really honest. After running Dollar Bureau for 6 years, speaking with thousands of Singaporeans about their money, I’ve seen the unglamorous side of retirement up close.
A lot of people like to complain about CPF – “cannot touch”, “government keeps changing the rules”, “my money stuck inside”.
And I get it.
But here’s the thing: I’ve met many people in their 60s and 70s who have no personal savings outside of CPF.
Zero. Kosong. 零. பூஜ்யம்.
They either never planned properly, spent everything, or simply didn’t earn enough to save beyond the basics.
Guess what’s keeping them afloat today? Their CPF.
Guess what’s keeping a roof over their heads? Their CPF.
Guess what’s paying for their healthcare? Their CPF.
Monthly payouts from CPF Life, plus whatever’s left in their OA and SA, literally keep food on the table and a roof over their heads.
Imagine if CPF didn’t exist. We’d have a huge social crisis on our hands – kids being forced to carry the full financial burden of their parents, or worse, elderly Singaporeans with nothing at all.
Imagine the taxes we have to pay for the government to provide social welfare. Yikes.
So while it’s not perfect – and yes, it forces discipline in a way that feels uncomfortable – CPF is the reason why Singapore hasn’t faced the same elderly poverty crisis that some other developed countries are struggling with.
In many ways, it’s not just a retirement tool; it’s our society’s shock absorber.
But while we can’t change it, we can adapt ourselves to it.
Think of CPF like your “default insurance policy.”
It’s slow, steady, and predictable.
Your OA can fund housing, your SA grows at a solid 4% floor, and CPF Life ensures you won’t completely run out of money in old age.
That’s a safety net no other investment gives you. But don’t mistake it for the only strategy – you still need liquid savings and investments outside CPF to cover life’s curveballs.
Balance liquidity with forced savings.
If you’re younger and CPF feels like a straitjacket, build a personal “buffer fund” outside of it.
Even $10,000 to $20,000 parked in a high-yield savings account or T-bills can give you breathing room so you don’t feel forced to take on credit card debt when emergencies hit.
That way, CPF’s illiquidity becomes a strength, not a weakness – you won’t be tempted to touch it (not that you can anyway), but you won’t be stranded or left in debt if cash is tight either.
Play the SA top-up game smartly.
If you’re in a higher income bracket or already have a decent buffer fund, topping up your SA (or RA, if you’re above 55) can be one of the safest ways to “lock in” a 4% return.
And with tax relief, you’re effectively earning even more. But only do this if your short-term liquidity is sorted – don’t lock up funds you’ll regret not having later.
CPF’s ability to fund housing is powerful, but it’s also why some people end up “asset rich, cash poor.”
If you max out your OA on a bigger home than you need, you’ll have less for retirement.
The trade-off is real.
A good rule of thumb: if your mortgage eats up more than 25–30% of your income and you’re struggling on the daily, you’re leaning too hard on CPF for housing at the expense of your future self.
CPF is the floor – build your ceiling.
Yes, CPF keeps you from falling through the cracks.
But if you want to retire before 65, travel freely, or support kids studying overseas, you’ll need to stack investments outside CPF – stocks, REITs, ETFs, even a side hustle.
That’s how you buy options in life.
So the next time someone grumbles “my money stuck in CPF,” just remember – sometimes the best investments are the ones you can’t sabotage yourself by withdrawing too early.
Stay informed, stay invested, and keep playing the long game.