One of my main concern is with current situation. Inflation can go much higher and one will be locked into it. Well, SSB is around there 3% too BUT the Capital is protected by SG Gov if you decided to sell it before Maturity.
As I know SGS bonds can be traded on the secondary market – at DBS, OCBC, or UOB branches; or on SGX through securities brokers. The price of SGS bonds may rise or fall before maturity. In higher interest rate environment at low liquidity selling market traded bond could be bad.
With 50 years maturity, People in 40s and above may not see it alive to maturity.
Maybe for children ? Nope. I rather help them top-up in CPF ( Better Rates) and avoiding inheritance problems.
And with current CPF and SSB serving as a reserve and basic safety nets, putting more into low yield asset may not cut it and could be detrimental for retirement.
Happy National Day
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