The Central Provident Fund, commonly known as CPF, is a compulsory savings scheme implemented by the government of Singapore to assist its citizens in meeting their retirement, housing, healthcare, and educational needs. CPF is an acronym that stands for "Central Provident Fund." It is managed by the government agency known as the Central Provident Fund Board (CPFB).
CPF serves as a social security system for all Singaporean and permanent resident employees aged 16 and above, with contributions split between employees and employers. These contributions are deducted from employees' monthly salaries and are allocated into three accounts - the Ordinary Account (OA), Special Account (SA), and Medisave Account (MA) - to cater to specific financial needs.
The funds in the Ordinary Account can be used for various purposes like purchasing a house, financing education, or invested for higher returns. The Special Account, on the other hand, is primarily geared towards retirement savings and potential investments. Lastly, the Medisave Account helps individuals save for healthcare related expenses, including hospitalization and medical treatments.
CPF provides a robust support system and acts as a safety net, promoting financial security for Singaporean citizens. It safeguards citizens' interests by ensuring that they have substantial savings throughout different stages of their lives, particularly during retirement. CPF offers attractive interest rates and a range of flexible schemes, making it an essential component of Singapore's comprehensive welfare system.
