The Central Provident Fund (CPF) is a comprehensive social security scheme in Singapore that aims to provide financial stability for its citizens in their retirement years. It is a mandatory savings scheme for working Singaporeans and Permanent Residents (PRs) that covers their healthcare, retirement, and housing needs.
Under the CPF scheme, employees are required to contribute a portion of their monthly income to their CPF accounts. This contribution is then matched by their employers, with both parties contributing varying percentages based on the employee’s age and income level. The CPF contributions are then invested by the CPF Board to generate returns, ensuring that the funds continue to grow over time.
One of the main benefits of the CPF scheme is that it helps individuals plan for their retirement by providing them with a steady stream of income in their golden years. The funds in their CPF accounts can be withdrawn upon reaching the age of 55, or they can choose to continue growing their savings for additional interest. Moreover, the CPF scheme also offers various housing schemes such as the Home Protection Scheme and the Public Housing Scheme to assist citizens in purchasing their own homes.
However, it is essential to note that the CPF scheme also has its limitations. For instance, the funds in the CPF accounts can only be used for specific purposes, such as education, housing, and healthcare
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