CPF savings in the Special, MediSave and Retirement Accounts will continue to enjoy a 4% interest rate floor until the end of 2027. But what does that mean for the money you have outside CPF?

Michelle Martin speaks with Elijah Lee, Senior Financial Services Manager at Phillip Securities, about how investors should weigh CPF’s relatively attractive returns against liquidity and the potential for higher investment returns elsewhere.

They discuss whether CPF should be viewed as part of your overall portfolio, whether having a secure CPF base gives you room to take more risk outside it, and why comparing CPF’s 4% directly with REIT, dividend-stock or bond yields can be misleading.

Plus, when might investing your CPF savings make sense, how should the equation change as you approach 55, and who should think twice before locking more money away in CPF?