Why CPF Haters Are Vanishing During Bearish Markets

In Singapore, Central Provident Fund (CPF) is a mandatory social security savings plan for employees, which includes retirement, healthcare, and housing needs. There are some people who have expressed their dislike towards the CPF system in the past, claiming that it is not worth the investment. However, the market downturn in 2022 has led to a change in perception towards CPF. In this article, we will discuss why CPF haters are vanishing during bearish markets.

1. Building Up CPF for Retirement Funds

   Mr. Loo Cheng Chuan from the 1m65 movement is a great proponent of building up CPF for retirement funds. By the age of 65, one can reach a retirement fund of 1 million dollars with a CPF savings of 500k each for oneself and one’s spouse. Mr. Loo’s content has inspired many to invest in CPF for a secure future.

2. Vanishing CPF Haters

   Before 2022, there were many haters of CPF, especially in online forums. Crypto enthusiasts would comment on how investing in CPF was foolish, as they could earn more through crypto investments. However, when the stock market and crypto market crashed in 2022, many people began to realize the importance of a secure investment. The bearish market led to a change in perception towards CPF, causing the CPF haters to vanish.

3. Rising CPF Balances

   Recently, the CPF members’ account balance sheet has shown that many young people have high CPF balances. The pandemic has led to people becoming more cautious about their finances and investing in safer assets. The CPF system has proven to be a stable and secure investment in such times, leading to a rise in CPF balances.

4. Change in Market Sentiment

   The rise in inflation and interest rates has caused people to become more conservative with their investments. They are now more interested in safe-haven assets like CPF, which provides a risk-free 2.5 percent in OA, 4 percent in SA, and 4 percent in MA. With this, people have realized the benefits of CPF as a secure investment and are choosing to invest in it more.

Conclusion:

The CPF system has proven to be a secure and stable investment during bearish markets, which has led to a change in perception towards it. The rise in CPF balances and the vanishing of CPF haters is evidence of this. The market downturn has highlighted the importance of a secure investment, and CPF has become a popular choice for many.