PAP government shortchanged CPF members more than 40 years ago

Many CPF members have mistakenly believed that the record high 6.5% CPF rate was a godsend.

But in order for CPF interest rate to be meaningful, it has to be beat inflation.  Seen in this context, 6.5% CPF rate was actually way too low when inflation reared its ugly head in the 1970s.

According to archived records, CPF members earned returns below the inflation rate in 4 years from 1971 to 1981.

In 1973, CPF members were paid 14% below the inflation rate.
1cpf11It was worse in 1974 when CPF members earned returns which were 15.8% below the inflation rate.

Image below @ NAS
1CPF10
The PAP had already shortchanged CPF members more than 40 years and, unfortunately, continues to do so today. 😦

 

 

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2 Responses to PAP government shortchanged CPF members more than 40 years ago

  1. Wiki says:

    Have been reading your blog for long time. Like the Singaporean style of writing. But to make your articles quotable by news site and raise widespread awareness, it needs polishing. More references to sources, less colloquial.

    • Phillip Ang says:

      🙂 Don’t think I have the capability to write in any other way. Seriously.
      Will include more references. Thanks for input.

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