CPF inflows exceed outflows by $26.08b (est.) – From a cashflow perspective – are we spending any money on CPF?

CPF inflows

$21.9b – CPF savings used by 996,000 members for housing needs

Since about 80% live in HDB – how much money may eventually become worthless, when the lease expires?

$44.7b Contributions

416,000 members received monthly retirement payouts
$2.2b in monthly payouts disbursed in 2021

Does the above mean that the average monthly payout per member was about $441 ($2.2b divided by 416,000 members divided by 12 months)?

Is our CPF system, arguably, a success or failure, compared to other developed countries, in the light that we have the highest contribution rate and lowest interest (return) (2.5% Ordinary Account), in the world – and an average monthly payout of $441?

$7.4b Withdrawals ($5.3b Reached 55 & have set aside their CFRS in RA + $1.5b Death & reduced life expectancy + $0.6b Leaving S’pore permanently) + $1.12b Direct medical expenses + $1.2b for 775,000 Claims from MediShield Life coverage

$1.5b (est.) Private insurance premiums

$6.7b (est.) for Housing

(Inflows exceed outflows by $24.58b ($44.7 – $20.12b)

So, from a cashflow perspective – does it mean that we may not be spending any money in our CPF system?

$1.8b Extra % (9.8% ($1.8 divided by $18.3b)) out of $18.3b % credited to members, 3.6% ($18.3 divided by $505.7b) average % for the year)

2m of 4.1m Inactive CPF Members

$505.7b Members’ Balances

What is the difference between the returns derived from investing our CPF, from the inception of CPF, & the % paid to us?(estimate 6.0% – 3.6% x $505.7b = $12.1b?) (2021)



About the Author

Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.