Should You Grow Your CPF Through Investment?
- Clara Shinta
- Sep 1
- 3 min read
Did you know you can invest your CPF savings to grow them faster?
The CPF Investment Scheme (CPFIS) lets you use your CPF OA and SA funds to invest in products like stocks, bonds, ETFs, and more.
Let's break it down in simple terms!
Evaluating Your Financial Goals
When considering whether to invest your CPF-OA money, take a step back and evaluate your financial goals. If you're saving for retirement, CPF-SA is a great way to build a stable foundation with its high guaranteed interest rates. But if you're looking to achieve higher growth over time and are prepared for potential market risks, investing the CPF-OA could help you accelerate your wealth-building journey
Always ensure that your investments align with your long-term financial objectives, and consider seeking advice from financial professionals to make informed decisions. |
Singapore's inflation averaged 2.6% since 1961 and 3.9% in the past four years, outpacing the CPF OA's 2.5% interest, reducing its real value by 1.4% annually. Amid rising rates, CPF members shifted S$9.6 billion to CPFIS from 2022 to Q2 2024, pushing balances up 58% to S$27.2 billion.
What is CPFIS?
CPFIS = CPF Investment Scheme
It's a scheme that allows you to invest your CPF Ordinary Account (OA) and Special Account (SA) savings to potentially earn higher returns.
Why invest?
💲CPF OA gives 2.5% interest, and SA gives 4.0%. But with CPFIS, you might earn more if you invest wisely!
📢 Remember: Investments come with risks. You could earn more, but you could also lose money.
Who is eligible for the CPF Investment Scheme?
Are you eligible for CPFIS? ✅
Here's what you need to qualify:
Factor | Requirement |
Age | 18+ years old |
Legal Status | Not bankrupt |
CPF OA Balance (for CPFIS-OA) | At least $20,000 |
CPF SA Balance (for CPFIS-SA) | At least $40,000 |
CPFIS Self-Awareness Questionnaire | Must be completed |
What Can You Invest In?
Here's a quick breakdown of what you can invest in with CPFIS:
Account | What You Can Invest In |
CPF OA |
|
CPF SA |
|
How to Start with CPFIS
Ready to invest? Here's how to start:
1. Check your CPF OA/SA balance.
2. Research approved CPFIS products.
3. Open a CPFIS account with an approved bank or provider.
4. Start investing!
💡 Pro Tip: Use tools like CPF's Investment Dashboard to track your investments. |
Is CPFIS Right for You?
"Should you invest your CPF savings?"
✅ Yes, if:
You're comfortable with investment risks.
You have a long investment horizon (10+ years).
You've already set aside enough for housing and emergencies.
❌ No, if:
You're risk-averse and prefer guaranteed returns.
You need the money soon (e.g., for housing or retirement).
You're not confident about managing investments.
Key Takeaways
CPFIS in a Nutshell 🥜
CPFIS lets you invest your CPF OA/SA savings.
You can invest in stocks, ETFs, unit trusts, and more.
Potential for higher returns, but risks are involved.
Fees can add up, so choose wisely!
Take Action Based on Your Financial Strategy
The key takeaway is that while CPF-SA money should be left to grow safely, CPF-OA money can be a useful resource for investment. The decision ultimately depends on your financial goals, risk tolerance, and investment experience. With the right strategy, you can make your CPF-OA money work harder for you in the long term, while ensuring that your retirement savings in the CPF-SA remain safe and growing steadily.
Ready to grow your CPF savings?
If you meet the requirements and understand the risks, CPFIS could be a great way to grow your savings.
Share this with friends who might find it useful! |
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