Toward the beginning of the month, we were told that the first $60,000 in the various accounts will be given an additional 1%.
This is to help grow our retirement fund. I cheer to that.
A couple of weeks later, today, I heard it on radio that the inflation rate is now at 1-2% and it is expected to go up in the second half of the year.
From this piece of news, it dawned upon me the importance of the 1% increase in interest rate announced earlier.
Without this increase in CPF rate, our funds in the CPF Ordinary account would be accumulating at close to inflation rate. Bottomline - No real increase in purchasing power.
Bottomline - We need to ensure that our monies work even harder to ensure sufficient funds for retirement.
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