In a hypothetical situation, if everyone withdraws all their CPF today, will CPF have enough cash or liquidity for that? - Seedly

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Asked by Gabriel Tham

Asked on 04 Jun 2019

In a hypothetical situation, if everyone withdraws all their CPF today, will CPF have enough cash or liquidity for that?


Answers (4)

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Cedric Jamie Soh
Cedric Jamie Soh, Director at
Level 8. Wizard
Answered on 05 Jun 2019

The answer is the same for any banks (in the world) or financial institution.

Nope. (because no banks or financial institute will keep cash, its not earning money, they want to lend out this money for returns)

CPF does not keep all the cash in vault safe. Most of it are lent to GIC (Government Investment Corporation) or MAS as bonds for them to use for investments.

They will go buy assets getting returns higher than what CPF Board charge them, and then of course keep the money as Net Investment Returns in government's holdings.

Technically those are still the people's money.

So in theory, if everyone goes to CPF board and for some political reason, the govt allows everyone to withdraw, you still months and years for GIC / MAS etc to wait for the end of the bonds date, and to return the money to CPF Board before the CPF board can return you the money.

Soooo in theory: The government is indeed telling the truth they are only earning 2.5% for your OA.... coz the one earning big bucks is not CPF board but GIC.

Its like how your HDB is "subsidied" because they are buying land from Singapore Land Authority. They are all telling the truth.


Chris Chin
Chris Chin, Senior Supply Chain at Mnc
Level 5. Genius
Answered on 12 Jun 2019

Nope, CPF don't have so much cash or liquidity, as they need to commit the funds to low risk investments, financial instruments and money markets to pay you the CPF interest.

However, that is not a problem, as they can always issue virtual credits or Govt guaranteed IOU to account holders to use in daily transactions.



Nope. Given that CPF money are invested into other monetary instruments; it can be safe to say that if today there is a panic and everyone rushes to withdraw their cpf then we will see the situation whereby CPF may be empty.

It will also affect other financial institutions that have CPF investments.. since CPF would want to liquidate some of the investments to either put back into CPF as emergency (assuming emergency would be used up which is highly plausible if everyone withdraws) so on and so forth.


Lee Jiahui
Lee Jiahui
Level 6. Master
Answered on 12 Jun 2019

Maybe we should qualify it is everyone eligible to withdraw all their cpf.

2 groups :

  1. Those who just turn 55 yo

  2. Those who are older than 55 yo