From 1 Mar 1986 to 30 June 1999, the formula to compute the calculated rate is 50% fixed deposit rate and 50% savings rate of the average of the big 4 local banks over the preceding relevant 6 months.
From 1 July 1999 to present, the formula to compute the calculated rate is 80% fixed deposit rate and 20% savings rate of the average of the major local banks over the preceding relevant 3 months.
From 1 Jan 2008, savings in the Special, Medisave and Retirement Accounts is pegged to the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1%.
Current fixed deposit rates are 0.21% and 10 year SGS rates is 1.93%. If you look at the document, the government have been giving us more than the benchmark They are following
CPF in their eyes is meant to be risk free savings and not for retirement. Hope this address the narrative.