What You Need to Know About Investing Your CPF Money

by Radhika Pawar creative content writer

Life after retirement can prove to be hard especially when you do not have the finances to meet your expenses and pay bills. After all, the bills and expenses do not cease just because you want to retire. That is why Singaporean are taking full advantage of the CPF to plan for life after retirement. Even though the savings put into the CPF can often be left untouched until you turn 55 years, it ensures you have sufficient savings once you retire.

 

What is even better, CPF offers an interest rate that is adjusted for inflation and tends to be higher when compared to your typical fixed deposit rates. Nevertheless, you can still settle for higher returns by taking investment matters into your own hands. That said, in this article, we will take you through important things you need to know about CPF investment Singapore.

 

CPF Investment Scheme

Before investing your money with the CPF, you need to spend some time examining the interest rates on both the Ordinary Account and Special Account. Through this action, you will have a clear idea of what is set to come your way. The good news is members of CPF can create a CPF Investment Scheme (CPFIS).

 

Thanks to this scheme, they are free to use their CPF balances to invest in a wide array of financial instruments. You should, however, keep in mind that you can only use up to 35% of your investible savings for this purpose.

 

CPF Investment Scheme Eligibility

For you to be eligible for the CPF Investment Scheme, you need to be a working Singapore citizen and/or permanent resident. You must also be at least 18 years and have enough money in your CPF accounts rather than be an undischarged bankrupt. The moment you decide to invest money from your Ordinary Account, you will have to open a CPF Investment Account with UOB, OCBC, or POSB.

 

Final Thoughts

When it comes to investing your CPF money, you should never make a decision blindly as it might end up working against you. Fortunately, you can get expert advice and avoid the stress of determining what works well for you when it comes to CPF investment Singapore. If you are wondering about the best place to get expert advice, then you should look no further than Global Financial Consultants (GFC), industry leaders at what they do.

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Created on Dec 4th 2020 04:04. Viewed 243 times.

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