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Dec 16, 2020



What Is the Central Provident Fund?

The Central Provident Fund (CPF) is a mandatory benefit account providing retirement earnings and healthcare for Singaporeans. Contributions to the retirement account originate from both the employee and the employer. There are three types of CPF accounts: ordinary, special, and medisave accounts.1 


The Central Provident Fund (CFP) is an obligatory benefit account (for retirement, healthcare, and housing) in Singapore that all residents are required to contribute to. 

Residents can withdraw from the CPF at age 55.

Like the U.S. Social Security system, delaying CPF withdrawals means a higher payment later in life. 

The CPF is mandatory, unlike a company’s 401(k) that employees can opt-out of. 

CPF યોજના હેઠળ ના રાજ્યના તમામ પ્રાથમિક શિક્ષકો ની માહિતી GPF અનુસંધાને મોકલી આપવા બાબત લેટેસ્ટ પત્ર

Understanding the Central Provident Fund

The CPF was controversial when first introduced with considerable opposition to the concept of a forced retirement program,3 but it became more popular over the years and has expanded to include healthcare (medisave) and public housing assistance.2

Singaporeans can begin drawing from their retirement account at age 55, and similar to the system in the U.S., waiting to receive funds until an older age means more money will be in the account.

The employee and employer each contribute to the CPF account. The funds in the CPF account are conservatively invested to earn around 5% per year.1 In 1968, the CPF expanded to provide housing under the Singapore Public Housing Scheme. In the 1980s, the program expanded again to provide for all participants.2

Some CPF participants wanted an option for taking on more risk to earn a better return than the average 5 percent, so in 1986, a new investment option allowed participants to manage their own accounts. Shortly thereafter, the program added an option to convert the account into a  upon retirement.

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