What is CPF

Staff Writer

January 25, 2022

What’s in the article?

CPF or Central Provident Fund is a must-have pension security system that every Singaporean, whether a citizen or permanent resident, can be provided with. However, there is a catch. It is only applicable to those people who earn at least S$50 every month.

The Central Provident Fund is funded not only by employers but also employees’ contributions. This savings scheme is expected to meet retiree’s healthcare, housing, and retirement needs. That is why it comes in handy during retirement.

All eligible Singaporeans are expected to sign up for this savings scheme to secure their future. The government of Singapore has streamlined the CPF application process to ensure it performs its intended task in a fine fashion.

How to Fund Your Retirement

As the years go by, retirement keeps on beckoning. For that reason, you have to start preparing for it in advance. Early preparations ensure that once you retire, you don’t have to start struggling with getting the most basic needs. This is why various countries have introduced several retirement security savings schemes. One of the countries that have implemented this system is Singapore. It has introduced the Central Provident Fund (CPF) a reliable security savings scheme. Every Singaporean including permanent residents are expected to register for this program. Provided you are of age, it will be a great idea to take up the Central Provident Fund. This is one of the best strategies you can use to fund your retirement.

Most people wonder how you can fund your retirement using CPF. The process is very simple. Once you register for Central Provident Fund, you will be expected to make contributions every month. The contributions are directed to three accounts namely:

  • Ordinary account. This account takes care of housing and retirement needs.
  • Special Account. Specifically, for sorting out your retirements needs.
  • Medisave Account. Mainly for dealing with healthcare needs.

Once you reach 55 years of age, savings in both your Ordinary and Special account will be transferred to the Retirement Account. The transferred amount will make up your retirement savings amount.

Learn more about CPF contributions in Singapore.

You can now start planning early for your retirement. In order to have a smooth planning process, you will be informed about your basic retirement amount. In case you have not attained the age of 55 years, you will be restricted to only withdrawing $5,000 of both your special and ordinary accounts. This is a rule that you need to follow religiously.

For those who have attained the age of 55 years, be ready to withdraw an increased amount of money. This is to ensure that you can tackle the issues of inflation and increased standards of living.

How to Use the CPF Retirement Fund

Your retirement funds need to be spent wisely. This is of importance to ensure you do not become broke or bankrupt within a short time after retirement. You can spend your funds on:


Get yourself a nice and amazing house that you want to spend your retirement years in. Remember, housing is a vital basic need that you cannot forego. You can either build your own home or simply buy one. Most importantly ensure the house meets your specifications. Furthermore, you can do service to your house, purchase private property or flat.


Healthcare is very important. You can enroll in a reliable insurance policy that will ensure you stay healthy and covered medically all throughout your retirement years. Get your policy from a competent insurance company in Singapore. You can also seek the advice of an experienced insurance broker when deciding on an insurance policy.

Protect Your Family

Under the CPF there is a variety of schemes from which you can use. Some can be used to protect your family members. These include the following:

  • Home Protection Scheme: This scheme protects all of you as a family from losing an HDB flat. It comes in handy when the quoted housing loan is not completed.
  • Dependents’ Protection Scheme: This option is of great use when the insured member passes away. The dependents are given some money to get them through a difficult period.

It is very important to be well aware of security saving strategies such as the CPF. This know-how will allow you to plan for your retirement years in the best way possible. You will be able to put in place a long-term plan that will prevent you from getting broke or even bankrupt.

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