Have been making regular voluntary contributions or top-ups to my CPF ever since I started working. This is on top of the "mandatory" contributions and it has been tough at times to force myself to top-up especially when cashflow might be tight and there are so many other investment opportunities out there that are screaming a "Buy!".
However, the CPF really forms a solid foundation for anyone's retirement plan. Having been inspired by other blogs in my younger days, I stuck to the habit of making regular contributions to my CPF Special Account and Medisave Account since this was earning an interest rate of 4%. This was much higher than any fixed deposit rates out there in the past 10 years (ignoring this year of course where fixed deposit rates have climbed up).
At times, I will also refund my CPF housing loan component which I had utilised to buy my home. This has not been the priority recently since there are other instruments such as the Singapore Savings Bonds which now provides an interest rate or return of more than 2.6%. Thus, it makes sense to buy into these instruments using my spare cash instead of returning money to my CPF OA which only earns 2.5%.
The CPF now forms a significant amount of my portfolio as it is equivalent to the risk free or "bond-like" component of my portfolio. I am essentially investing in a risk free asset and this should form the base of my retirement portfolio.
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