Central Provident Fund (CPF): Who Qualifies and What You Get
Learn how the Central Provident Fund works to help you save for your retirement, housing needs, and healthcare costs in Singapore.
The Central Provident Fund (CPF) is a mandatory social security savings scheme designed to help you build funds for your future needs. It functions as a way to set aside money during your working years to ensure you are prepared for significant life milestones and long-term stability.
Who it's for
This scheme is specifically for Singapore Citizens and Permanent Residents. As a resident, your contributions are managed to ensure you have a financial cushion for the different stages of your life.
What you get
The money you contribute is allocated into different categories to cover your essential life requirements. These benefits are structured to provide you with savings for three primary purposes: your retirement, your housing needs, and your healthcare expenses. By dividing the funds this way, the scheme helps ensure that you have dedicated resources for your home, your medical care, and your life after you stop working.
What it costs you
Participating in this scheme involves mandatory monthly contributions that are taken directly from your salary. This means a portion of your monthly earnings is set aside into your accounts rather than being paid out as take-home pay. These contributions are a requirement for those covered by the scheme to ensure the long-term growth of your personal savings.
The catch to know
While most people see their contributions distributed across various needs, there are specific rules for certain professions. For example, self-employed veterinarians must contribute to MediSave, which is the specific component of the fund used to manage healthcare-related costs.
How to apply
- Confirm your status as a Singapore Citizen or Permanent Resident to ensure you are covered.
- Verify that your employer is correctly calculating and making your mandatory monthly contributions from your salary.
- Use the official portal to track your savings and manage your accounts.