Retirement in Singapore: Investing your CPF OA

Myth: Only a small percentage of Singaporeans outperform the CPF Board

Contrary to popular belief, a significant portion of Singaporeans are actually outperforming the CPF Board in terms of returns on their investments.

According to data extracted from the CPF Board’s 2023 Annual Report, 53% of Singaporeans who opted for self-investment of their Ordinary Account (OA) funds surpassed the returns offered by the CPF Board.

What makes this statistic interesting is the context behind it. These returns are cumulative, suggesting that proven investment strategies such as dollar-cost averaging over an extended timeframe (8 years in this instance) was used.

The fact that more than half of self-investors are surpassing the CPF Board’s returns suggests the value of active management of our own retirement fund. However, it’s crucial to remember that this success isn’t universal. 26% who self-invested have experienced losses, while 21% have earned returns lower than what the CPF Board would have provided.

Taken holistically, these statistics highlight the value of being self-aware when deciding whether to opt for self-investment — while the potential for higher returns exists, it comes with inherent risks.