Retirement can be a daunting thought, especially when it comes to financial planning. In Singapore, the Central Provident Fund (CPF) is a major pillar of retirement planning. This mandatory savings scheme was introduced in 1955 to help Singaporeans save for their retirement, healthcare, and housing needs. With various rules and regulations surrounding the CPF, it can be confusing for many to understand how it works and what it means for their retirement.
The CPF retirement scheme is designed to ensure that every Singaporean has enough savings for their retirement years. It requires every working Singaporean and their employer to contribute a fixed percentage of their monthly income to their CPF account. These contributions are then invested by the CPF Board to generate returns, further increasing the savings of the account holder. The scheme also offers tax relief and bonuses to incentivize individuals to save more. With the CPF, Singaporeans can have a secure and stable source of income during their retirement years.