[sgbuffett]

CPF ahileders could have locked themselves in low rates and get wiped out by inflation.

If you look at last 80yr history low interest rates and low inflation of the early 2000s were very unusual and not the norm. In the 1970s for example fixed deposit rate was 10%. Only in period  2009-2021 then we havee near zero rates and low inflation.

This case people to be desperate for higher fixed rate and CPF Special being inevitable of the "ways" to get 4% return people max out the SA and the further mixed more money into it using the shielding trick. Once locked it it us stuck.

Now 2 things are happening the inflation of transport such as cars and hawker food is reaching closer to double digits.and ruse in yield of fix instruments like US treasuries is reaching 6% and threaten to head for 7 to 8%.

The SA and RA  will turn into a trap with amounts inside eroding in buying power...and if  hyperinflation occurs a near complete wipe out.

The safest path is to hedge and keep some liquidity and flexibility to defend against dire situations.