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.
It was worse in 1974 when CPF members earned returns which were 15.8% below the inflation rate.
Image below @ NAS
The PAP had already shortchanged CPF members more than 40 years and, unfortunately, continues to do so today. 😦