my question is if hit 1M in cpf. then we can use that money? can withdraw and spend?
People like this Loo Cheng Chuan and Wilfred Ling are just part of the PAP propaganda. The whole piece has no real analysis, its a fluff piece by the prostitute press to promote the benefits of the CPF scam.
1) The interest rate in O and Special accounts fluctuate all the time. And usually, in a downward spiral. He cannot count on 4% or whatever rate forever. If the interest rate is lowered, he will not have his mythical $1 million
2) he does not take into account the inflation rate. If the inflation rate is 5% or higher, 4% means shit. U are suffering a negative return every year. In 21 years when he reaches 65, his $1 million dollar in 2016 purchasing power might only be able to buy $680,000 in 2037, when he gets to 65. Can he survive on this? If he wants to retire with $1 million in today's money, he have over $1.4 million in 2037 and not $1 million.
3) The article has not compared any other investment options. Stocks and mutual funds have traditionally done better then 4%. Even real estate is better then that. Properties are usually in synch with the inflation rate. the property market is low now, he can buy a private condo for under $1 million. If he can rent it out, so AirBnB, etc. it will be mostly paid off in 21 years and there is also a appreciation component on the property, not possible with a CPF special account.
4) As for risk mitigation, if I am not mistaken, certain life insurance products like whole life and universal life are also not touchable by creditors. In other words, even if you are bankrupt, the creditors cannot force you to sell your insurance policy to pay them back. I suppose they forgot to mention this little fact.