Executive Summary

Singapore faces a unique retirement savings paradox in 2026. While US savers can lock in 3.80% APY on 10-year CDs, Singaporeans must navigate an environment where Singapore Savings Bonds offer only 2.25% over 10 years, traditional fixed deposits rarely exceed 1.45% p.a., yet their mandatory CPF savings earn 4.08% for Special Account balances. This case study examines how Singapore’s low-rate environment is reshaping retirement planning strategies.

Top 10-Year CD Rates

The best 10-year CD rate right now is 3.80% APY from First National Bank of America, requiring a $1,000 minimum deposit for a 120-month term.

The top five 10-year CD rates are:

  1. First National Bank of America – 3.80% APY (120 months, $1,000 minimum)
  2. Credit Human – 3.75% APY (84-120 months, $500 minimum)
  3. Vio Bank – 2.75% APY (84 or 120 months, $500 minimum)
  4. EmigrantDirect.com – 2.00% APY (60-120 months, $1,000 minimum)
  5. MySavingsDirect – 2.00% APY (60-120 months, $1,000 minimum)

Important Context

The Federal Reserve cut interest rates by a quarter percentage point at their December 10th meeting, the third consecutive cut, bringing the federal funds rate to a range of 3.50%-3.75% Bankrate. CD rates typically follow Fed rate movements, so rates have been trending downward.

It’s worth noting that top rates on various shorter-term CDs are currently higher than 10-year CD rates Bankrate. For example, some 1-year CDs offer rates above 4%, and 5-year CDs can reach 4.20% APY. The trade-off with a 10-year CD is locking in a guaranteed rate for a full decade, which protects you if rates fall further but could mean missing out if rates rise.

Would you like help comparing these options or exploring shorter-term CDs that might offer better rates?

analyse in singapore context using singapore scenarios

11:25 am

I’ll search for information about Singapore’s current CD rates and banking context to provide a relevant comparison.

Singapore fixed deposit rates 10 year January 2026

10 results

Singapore Best Fixed Deposit Rates [January 2026] | StashAway Singaporestashaway.sg

Best Fixed Deposit Rates in Singapore [January 2026] – Growbeansprout.comgrowbeansprout.com

CIMB SGD Fixed Deposit (Time Deposit) | FD Rates and Promotioncimb.com.sg

Best Fixed Deposit Rates in Singapore [Jan 2026] | Syfesyfe.com

Singapore Savings Bonds (SSB) 10-year return at 2.25%. Better than T-bills and fixed deposits? – TheFinance.sgthefinance.sg

Best Fixed Deposit Rates in Singapore (Jan 2026)—Up to 1.45%moneysmart.sg

Best Fixed Deposit Rates in Singapore (Jan 2026)drwealth.com

Best Fixed Deposit in January 2026: Compare Rates – My Sweet Retirementmysweetretirement.com

Best Fixed Deposit in January 2026 – TheFinance.sgthefinance.sg

High S$ Fixed Deposit Rates up to 1.23% pa for 5, 11 & 13 months – Hong Leong Financehlf.com.sg

Singapore Context Analysis: US 10-Year CDs vs Singapore Long-Term Options

Here’s how the US 10-year CD rates compare to what’s available in Singapore:

The Stark Rate Difference

US 10-Year CDs: Up to 3.80% APY
Singapore Equivalents: 1.99% – 2.25% for 10 years

The US market offers nearly double the returns of Singapore’s long-term options. This reflects fundamental differences in monetary policy—Singapore banks currently offer up to 1.00% p.a. for 8-12 month fixed deposits Bankrate, while the US Fed funds rate sits at 3.50%-3.75%.

Singapore’s Long-Term Savings Landscape

For Singaporeans looking at 10-year commitments, the main options are:

  1. Singapore Savings Bonds (SSB) – Most comparable to US CDs
    • Latest January 2026 issuance offers 2.25% average return over 10 years Fortune
    • Major advantage: You can withdraw anytime without penalties, unlike fixed deposits NerdWallet
    • Year 1: 1.33%, Year 10: 1.99%
  2. Traditional Fixed Deposits – Mostly short-term focused
    • Best rates: RHB at 1.45% p.a. for 3-6 months GOBankingRates
    • Singapore banks don’t commonly offer 10-year fixed deposits
    • Maximum terms typically 24 months

Key Differences for Singapore Investors

Liquidity: Singapore prioritizes flexibility. SSBs let you exit anytime penalty-free, while US CDs lock your money for the full decade with steep early withdrawal penalties (18-36 months of interest).

Currency Risk: Singaporeans considering US CDs would need USD and face SGD/USD exchange rate fluctuations over 10 years—potentially eroding returns if the Singapore dollar strengthens.

Alternative Options: The highest savings account rates in Singapore reach 7.05% p.a. GOBankingRates, though these aren’t locked-in rates and come with conditions like minimum spending requirements.

Singapore Scenarios to Consider

Conservative saver with S$50,000 for 10 years:

  • US route: 3.80% = ~S$22,500 interest (but forex risk + need USD account)
  • Singapore route: SSB 2.25% = ~S$12,650 interest (but full flexibility + SGD)

Retiree seeking stable income: Singapore’s shorter-term fixed deposits may actually suit better—you can ladder 6-month deposits at 1.45%, reassess every 6 months, and maintain flexibility for emergencies without the decade-long lockup.

Young professional building wealth: The rate gap suggests you might earn more from Singapore’s dividend stocks (7%+ yields mentioned) or even CPF Special Account (currently 4.08%) than either country’s fixed-income products.

The fundamental takeaway: Singapore’s lower interest rate environment means long-term guaranteed returns are less attractive here, pushing savers toward either flexible instruments like SSBs or higher-risk investments for better yields.


The Singapore Context: Current State

Interest Rate Landscape (January 2026)

Traditional Banking Products:

  • Best 6-12 month fixed deposits: 1.00% – 1.45% p.a.
  • Singapore Savings Bonds (10-year average): 2.25%
  • Long-term fixed deposits: Rarely offered beyond 24 months

Benchmark Rates:

  • SORA (Singapore Overnight Rate Average): 1.2% (down from 3% in early 2025)
  • MAS maintains modest appreciation bias for S$NEER policy band
  • Core inflation: 0.5-1.5% projected for 2026

CPF Interest Rates (Risk-Free):

  • Ordinary Account (OA): 2.5% p.a.
  • Special Account (SA): 4.08% p.a.
  • MediSave Account (MA): 4.08% p.a.
  • Retirement Account (RA): 4.08% p.a.
  • Extra 1% on first S$60,000 (capped at S$20,000 from OA)

Economic Outlook 2026

Growth Projections:

  • GDP growth: 2.4-2.9% (near-trend pace after strong 2025)
  • Inflation: 0.5-1.5% headline, 0.5-1.5% core
  • MAS eased monetary policy twice in 2025, now maintaining stance
  • SGD remains relatively strong (USD/SGD trading around 1.28)

Risk Factors:

  • US tariff implementations affecting export-oriented sectors
  • Global policy uncertainty weighing on investments
  • Potential AI investment boom correction
  • Geopolitical shocks could disrupt trade flows

Case Study: Three Singapore Investor Profiles

Case 1: Young Professional (Age 28, Single)

Profile: Emily, earning S$6,000/month, S$100,000 in savings

Traditional Approach (Pre-2026):

  • Keep emergency fund in savings account (3.5-4% with conditions)
  • Put remaining S$70,000 in fixed deposits (1.45% for 6 months)
  • Expected 1-year return: ~S$1,000

2026 Reality Check: With rates falling, Emily faces several challenges:

  • Fixed deposit rates dropped from 3%+ to 1.45%
  • Savings account promotional rates require minimum spending
  • 10-year commitment to SSBs yields only 2.25% average

Optimal 2026 Strategy:

  1. Transfer S$37,740 from CPF OA to SA (maximize allowed transfer)
    • Immediate rate jump: 2.5% → 4.08%
    • Annual gain on transfer: ~S$596 extra per year
  2. Max out CPF voluntary contributions for tax relief
  3. Invest remaining S$60,000 via CPF Investment Scheme (CPFIS):
    • 35% in STI ETF or blue-chips (DBS, SGX)
    • 65% in diversified equity funds
  4. Keep only 6 months emergency fund in high-yield savings

Outcome: Emily transforms a 1.45% fixed deposit return into a blended 5-7% portfolio return while maintaining CPF’s 4.08% base.


Case 2: Mid-Career Couple (Ages 42 & 40, Two Children)

Profile: David & Sarah, combined income S$15,000/month, S$450,000 in combined savings, outstanding mortgage S$600,000

The Dilemma:

  • Property loan at 2.8% SORA-pegged rate
  • Children’s education needs in 5-10 years
  • Want to secure long-term retirement planning
  • Should they pay down mortgage or invest?

2026 Strategic Analysis:

Option A: Accelerate Mortgage Repayment

  • Pay down S$200,000 from savings
  • Save 2.8% p.a. in interest = S$5,600/year
  • Reduces financial stress but depletes liquidity

Option B: Leverage CPF-Centered Growth

  1. Maximize CPF returns:
    • Transfer combined S$75,000 OA → SA
    • Gain 1.58% spread (4.08% vs 2.5%) = ~S$1,185/year
    • Use CPF OA to service mortgage (earns 2.5%, pays 2.8% = small gap)
  2. Children’s education fund:
    • Invest S$100,000 in SSBs (flexible withdrawal, 2.25%)
    • No lock-in penalty if education needs arise unexpectedly
  3. Retirement boost:
    • Each spouse tops up S$8,000 to SA annually
    • Claim S$8,000 tax relief each (potential S$3,200 tax savings)
    • Government matches first S$2,000 under MRSS if eligible
  4. Remaining S$250,000:
    • S$50,000 emergency fund (savings account)
    • S$100,000 in CPFIS investments (balanced portfolio)
    • S$100,000 in dividend stocks/REITs (5-7% yield)

Outcome: David & Sarah generate ~S$15,000/year in returns vs S$5,600 mortgage savings, maintain liquidity for children’s needs, and accelerate retirement savings through tax-advantaged CPF top-ups.


Case 3: Pre-Retiree (Age 58, Widowed)

Profile: Patricia, ceased employment, S$800,000 total savings, CPF RA has S$180,000 (below FRS of S$220,400)

The Challenge:

  • Needs reliable income for next 7 years until CPF LIFE payouts begin at 65
  • Cannot afford significant market volatility
  • Must top up CPF to Full Retirement Sum for optimal payouts
  • US 10-year CDs offer 3.80%, but currency risk and access issues

2026 Solution Framework:

Phase 1: Immediate CPF Optimization (Age 58-60)

  1. Top up CPF RA to Full Retirement Sum:
    • Transfer S$40,400 from cash to RA
    • Claim immediate tax relief (up to S$8,000/year)
    • Earn guaranteed 4.08% on entire S$220,400
    • Projected CPF LIFE payout: ~S$2,400-2,600/month for life from age 65
  2. Bridge income for 7 years (to age 65):
    • Ladder Singapore Savings Bonds: S$200,000
      • Redeem ~S$30,000 annually for living expenses
      • Earn 2.25% average on remaining balance
    • Keep S$100,000 in 12-month fixed deposits (1.45%)
      • Provides predictable income of S$1,450/year

Phase 2: Long-term Passive Income (Age 60+) 3. Dividend portfolio for supplementary income:

  • Invest S$400,000 in Singapore blue-chip dividend stocks
  • Target 5% yield = S$20,000/year passive income
  • Focus on: DBS (4-5% yield), Singtel (6-7%), CapitaLand bonds
  • Diversify across REITs for monthly distributions
  1. Emergency reserves:
    • Maintain S$60,000 liquid in high-yield savings
    • Covers unexpected healthcare or family needs

Projected Monthly Income:

  • Ages 58-65: S$2,500/month (SSB redemptions + dividends + interest)
  • Ages 65+: S$4,000-4,500/month (CPF LIFE + dividends)

Outcome: Patricia secures stable income without touching principal significantly, beats Singapore fixed deposit rates through CPF optimization, and positions herself for comfortable retirement with inflation-protected CPF LIFE payouts.


Outlook: What’s Driving Singapore’s Low-Rate Environment?

Monetary Policy Dynamics

MAS Strategy (2025-2026):

  • Eased policy twice in early 2025 (first time since 2020)
  • Now maintaining stable S$NEER appreciation path
  • Prioritizes price stability over aggressive rate cuts
  • Unlike Fed’s 3.50-3.75% rates, Singapore keeps SORA at 1.2%

Why Singapore Rates Stay Low:

  1. Inflation control success: Core inflation contained at 0.4-0.6%
  2. Currency-based policy: MAS uses S$NEER, not interest rates, as primary tool
  3. Global rate environment: Singapore tracks Fed loosely but maintains independence
  4. Economic resilience: GDP growth above-trend at 3.9% means no need for stimulus

Structural Challenges for Savers

The Paradox:

  • Singapore’s strong economic fundamentals = strong SGD = low domestic rates
  • US economic uncertainty = high Fed rates = attractive CD yields
  • But currency risk makes US CDs dangerous for Singaporeans

Rate Forecasts Through 2027:

  • SORA expected to stabilize around 1.0-1.5%
  • Fixed deposit rates unlikely to exceed 2% p.a. for foreseeable future
  • Singapore Savings Bonds may average 2.0-2.5% over 10 years
  • CPF rates (4.08% SA) remain most attractive guaranteed return

Impact Analysis: Winners & Losers in Low-Rate Singapore

Winners

1. CPF Members Who Understand the System

  • Those maximizing SA transfers from OA gain 1.58% spread
  • Voluntary top-up participants get 4.08% + tax relief
  • Near-retirees can lock in S$2,400+ monthly lifetime payouts

2. Property Owners with Low-Rate Mortgages

  • SORA-based mortgages now at 2.5-2.8% (down from 3.5%+ in 2023)
  • Monthly savings of S$500-1,000 on S$500,000 loan
  • Refinancing window creates opportunity to lock fixed rates

3. Dividend Investors

  • REITs and dividend stocks offer 5-7% yields
  • Relative attractiveness increases as fixed deposits fall below 1.5%
  • Singapore’s strong companies maintain stable payouts

4. Young Savers with Long Time Horizons

  • CPF compounding at 4.08% over 30-40 years is powerful
  • S$100,000 in SA at age 30 → S$520,000 at age 65 (no additional contributions)
  • Tax relief on voluntary top-ups sweetens the deal

Losers

1. Conservative Retirees Relying on Fixed Deposits

  • S$500,000 at 1.45% = only S$7,250/year income
  • Barely exceeds inflation (0.5-1.5%)
  • Real returns potentially negative

2. Late-Career Workers Without CPF Optimization

  • Missing the 4.08% SA rates by leaving funds in OA at 2.5%
  • Lost compounding on S$100,000 = S$60,000+ over 20 years
  • Many unaware of voluntary contribution tax benefits

3. Those Chasing “Safe” SSBs Without Understanding Trade-offs

  • 2.25% over 10 years seems safe but lags CPF SA by 1.83%
  • On S$200,000, that’s S$3,660/year in foregone returns
  • Flexibility comes at significant cost

4. High-Income Earners Over CPF Ceiling

  • Monthly ceiling rising to S$8,000 in 2026 helps some
  • But those earning S$15,000+ can’t CPF-shelter the excess
  • Must find alternative tax-advantaged vehicles (SRS, investments)

Solutions & Recommendations

Strategic Framework for Different Life Stages

For Ages 25-35: Build the Foundation

Priority 1: Max Out CPF Special Account

  • Transfer allowed amounts from OA to SA yearly
  • Benefit from 30-40 years of 4.08% compounding
  • Example: S$20,000 transferred at age 30 → S$104,000 at age 65

Priority 2: Invest Beyond CPF

  • Use CPFIS for 35% equity allocation (STI ETF, blue-chips)
  • Build external portfolio in global diversified funds
  • Target 6-8% blended returns

Priority 3: Strategic Housing Decisions

  • Don’t over-leverage on property
  • Keep CPF OA growing for retirement if possible
  • Consider renting if property prices are stretched

Avoid: Keeping excess cash in low-yield fixed deposits


For Ages 35-50: Accelerate Growth

Priority 1: Balanced CPF & Investment Strategy

  • Continue OA → SA transfers (maximize allowed)
  • Top up S$8,000 annually to SA for tax relief
  • If married, spouse top-ups provide double tax benefits

Priority 2: Supplementary Retirement Scheme (SRS)

  • Contributes to tax-advantaged account
  • Invest SRS in equities for growth
  • First S$40,000 tax-free on withdrawal at retirement

Priority 3: Build Passive Income Streams

  • Dividend stocks for 5-6% yields
  • REITs for monthly distributions
  • Bond ladders for stability

Priority 4: Protect What You’ve Built

  • Adequate insurance coverage (term life, critical illness)
  • Emergency fund 12 months living expenses
  • Estate planning and CPF nominations updated

Avoid: Panic-selling during market corrections; staying 100% in fixed deposits


For Ages 50-65: Secure the Runway

Priority 1: Hit CPF Full Retirement Sum

  • Top up to S$220,400 in RA by age 55 (2026 cohort)
  • Guaranteed S$2,400-2,600/month for life from 65
  • Use voluntary contributions + Matched Retirement Savings Scheme if eligible

Priority 2: Bridge to 65 Strategy

  • If retiring before 65, create 5-15 year income bridge
  • Singapore Savings Bonds for flexibility (can redeem penalty-free)
  • Dividend portfolio for supplementary income
  • Part-time work if feasible (re-employment age now 69)

Priority 3: De-Risk Gradually

  • Shift from growth stocks to dividend aristocrats
  • Increase bond allocation to 30-40%
  • Maintain some equity exposure (inflation hedge)

Priority 4: Healthcare Planning

  • Ensure MediSave meets Basic Healthcare Sum (S$79,000 for 2026)
  • Consider MediShield Life and Integrated Shield Plans
  • Set aside funds for potential long-term care

Avoid: Moving 100% to cash; forgetting about inflation; over-committing to illiquid investments


For Ages 65+: Optimize Payouts & Legacy

Priority 1: Activate CPF LIFE Optimally

  • Choose appropriate payout plan (Standard, Basic, or Escalating)
  • Understand payout amounts based on RA balance
  • Enhanced Retirement Sum (S$440,800) provides higher monthly income

Priority 2: Tax-Efficient Withdrawal Strategy

  • Withdraw from SRS gradually (50% taxable)
  • Time withdrawals to minimize tax bracket
  • Use CPF Retirement Account Shielding provisions

Priority 3: Generate Supplementary Income

  • Maintain dividend portfolio (4-6% yield)
  • REITs for monthly cash flow
  • Keep 30% in equities for longevity/inflation protection

Priority 4: Estate Planning

  • Update CPF nominations regularly
  • Create Lasting Power of Attorney
  • Consider trust structures for substantial estates

Avoid: Depleting savings too quickly; keeping everything in CPF (no liquidity); ignoring inflation


Comparative Solutions: Singapore vs US (10-Year Perspective)

Scenario: S$500,000 to invest for 10 years

Option A: US 10-Year CD at 3.80% APY

  • Pros: Higher rate, FDIC insured
  • Cons:
    • Currency risk (USD/SGD could move from 1.28 to 1.10-1.50)
    • Early withdrawal penalties (18+ months interest)
    • Cross-border banking complexity
    • No tax advantages

10-Year Return: S$500,000 → S$726,000 (assuming stable USD/SGD)
Risk: If SGD strengthens to 1.20, actual return drops to S$605,000 = only 1.1% p.a. in SGD terms


Option B: Singapore Hybrid Strategy

  1. S$200,000 → CPF Special Account
    • Voluntary contributions with tax relief
    • 4.08% p.a. guaranteed, risk-free
    • 10-year value: S$296,000
  2. S$150,000 → Singapore Savings Bonds
    • 2.25% average over 10 years
    • Full flexibility (redeem anytime)
    • 10-year value: S$187,000
  3. S$150,000 → Dividend Stock Portfolio
    • Target 6% yield + 2% growth = 8% total return
    • Singapore blue-chips (DBS, Singtel, CapitaLand)
    • 10-year value: S$324,000

Total 10-Year Value: S$807,000
Blended Return: 4.9% p.a. in SGD
Risk: Moderate (equity component), but diversified and tax-advantaged


Option C: Pure CPF Maximization (If Age <55)

  1. Transfer S$200,000 OA → SA
    • Immediate jump from 2.5% → 4.08%
    • 10-year value: S$296,000
  2. Annual S$8,000 voluntary top-ups
    • S$80,000 total over 10 years
    • Compounding at 4.08%
    • Tax relief savings: ~S$14,400 (at 18% marginal rate)
    • 10-year value: S$98,000
  3. Remaining S$220,000 in CPFIS investments
    • 35% STI ETF, 65% balanced funds
    • Target 6-7% return
    • 10-year value: S$410,000

Total 10-Year Value: S$804,000
After-tax Blended Return: 5.4% p.a. (including tax relief benefit)
Risk: Low to moderate, all under Singapore regulatory framework


The Verdict

For Singaporeans, the hybrid Singapore strategy (Option B) or pure CPF maximization (Option C) typically outperforms US CDs when considering:

  • Currency stability (no forex risk)
  • Tax advantages (CPF voluntary contributions, SRS)
  • Flexibility (SSBs, no lock-in)
  • Regulatory protection (MAS oversight, SDIC insurance)
  • Estate planning integration

The US CD’s 3.80% looks attractive until you factor in potential SGD appreciation, no tax benefits, and 10-year liquidity lock-up.


Action Plan: 10 Steps for Singapore Savers in 2026

Immediate Actions (This Month)

1. Audit Your CPF Accounts

  • Log into CPF website
  • Check OA vs SA allocation
  • Calculate maximum allowed OA → SA transfer
  • Execute transfer online (takes 5 minutes)

2. Calculate Your Retirement Gap

  • Use CPF Retirement Calculator
  • Determine if you’ll hit Full Retirement Sum (S$220,400 for 2026)
  • Identify shortfall amount and years to fill it

3. Claim This Year’s Tax Relief

  • If you haven’t done voluntary CPF top-up for 2025 tax year, do it before March
  • S$8,000 top-up = ~S$1,440 tax savings (at 18% rate)
  • Spouse top-up eligible for additional S$8,000 relief

Medium-Term Actions (Next 3-6 Months)

4. Diversify Beyond Fixed Deposits

  • If you have S$100,000+ in fixed deposits at 1.45%:
    • Move S$50,000 to CPF SA top-up (if eligible)
    • Move S$30,000 to Singapore Savings Bonds
    • Keep only S$20,000 for emergency liquidity

5. Build Your Dividend Portfolio

  • Open brokerage account if you don’t have one
  • Start with S$20,000-50,000 in blue-chip dividend stocks
  • Focus on: DBS Group, Singapore Exchange, Singtel, MapletreeLog
  • Target 5-6% dividend yield for passive income

6. Optimize Mortgage Strategy

  • If you have SORA loan above 2.8%, review refinancing options
  • Calculate CPF OA vs mortgage prepayment trade-off
  • Consider: Keep CPF OA growing at 2.5% if mortgage is only 2.6%

Long-Term Strategic Moves (Next 6-12 Months)

7. Implement CPF Investment Scheme (CPFIS)

  • Complete CPFIS Self-Awareness Questionnaire
  • Open CPFIS account with approved bank
  • Invest allowed portion in STI ETF or approved unit trusts
  • Target: 35% of investible OA in equities

8. Maximize Supplementary Retirement Scheme (SRS)

  • Open SRS account if you don’t have one
  • Contribute S$15,300 annually (for Singaporeans/PRs)
  • Invest SRS funds in growth-oriented portfolios
  • Build parallel retirement corpus outside CPF

9. Create Multi-Year Income Plan

  • If age 50+: Map out income sources from now to age 80
  • Identify gaps where CPF LIFE won’t be enough
  • Build SSB ladder or dividend portfolio to fill those gaps
  • Ensure smooth transition into retirement

10. Annual Review Ritual

  • Set calendar reminder every January
  • Review all interest rates, CPF policy changes
  • Rebalance investment portfolio
  • Adjust voluntary contributions based on income changes
  • Update CPF nominations and beneficiaries

Conclusion: The Singapore Advantage

While Singapore’s interest rate environment appears unfavorable on the surface—with 10-year commitments yielding only 2.25% compared to 3.80% in the US—Singaporeans actually possess a superior retirement savings system when CPF is properly leveraged.

Key Insights:

  1. CPF is Singapore’s Secret Weapon: The 4.08% Special Account rate beats virtually all guaranteed fixed-income products globally, with zero credit risk and tax advantages.
  2. Flexibility Over Raw Returns: Singapore Savings Bonds’ penalty-free redemption provides liquidity that US 10-year CDs can’t match, even at lower rates.
  3. Tax Optimization Multiplies Value: Voluntary CPF contributions providing immediate 18-22% tax relief effectively boost returns to 5-6% in after-tax terms.
  4. Currency Stability Matters: Keeping savings in SGD eliminates the forex risk that could erase half the return advantage of US dollar products.
  5. Longevity Protection: CPF LIFE’s inflation-indexed lifetime payouts address Singapore’s rising life expectancy better than fixed-term products.

The Bottom Line:

For the typical Singaporean saver in 2026, the optimal strategy combines:

  • 40-50% in CPF (SA/RA) for guaranteed growth
  • 20-30% in Singapore Savings Bonds for flexibility
  • 20-30% in dividend stocks/REITs for income
  • 10% in liquid emergency reserves

This blended approach delivers 4-5% risk-adjusted returns in SGD, provides multiple income streams, offers tax advantages, and maintains the flexibility Singapore’s uncertain global environment demands.

The real question isn’t whether Singapore’s rates match those in other markets—it’s whether Singaporeans are fully utilizing the sophisticated, government-backed retirement infrastructure already at their disposal. For most, the answer is: not yet.

Start today. Your future self will thank you when compound interest—even at “just” 4.08%—works its magic over decades.


This case study is for informational purposes only and does not constitute financial advice. Consult with a licensed financial advisor before making investment decisions.