CPF was "100 per cent safe''

[yeokiwi]

My point really is that instead of having the current formula, are we better served if SSGS is indexed to CPI - thereby causing GIC/MAS to invest in a manner/portfolio that hedges against inflation naturally and still get a decent return. I'm no fund manager so I would like to hear from all about the feasibility and of course sustainability of such a fund.

IMO, it is possible, but the key concern is "acceptable" volatility of shareholder i.e. the CPF members. I reckon the acceptable volatility is pretty low, with the importance of CPF on housing and retirement issues of its members.

Fund managers do have similar concern, trading the maximum profitability, over the lower volatility, just to ensure its investors a sound sleep at night. A handicap for managing OPM.

Generally, I am more for biased allocation of investment return to lower income Singaporeans. It is easier to implement and more sustainable.
HitandRun san has advocated for total freedom of investment when the CPF sum hits above a defined limit which is also a good suggestion too.

The bugbear now is that the minimum sum seems to be an elusive goal for many low income singaporeans.So, same with rolling out affordable HDBs for low income Singaporeans, there must be also a reasonable plan for most low income Singaporeans to achieve minimum sum by 60-65.