The Central Provident Fund (CPF) is a compulsory social security savings scheme that provides retirement, healthcare, and housing support to Singapore Citizens and Permanent Residents (SPRs). CPF contributions are made by both employees and employers, and are deposited into three separate accounts:

• Ordinary Account (OA): OA savings can be used for housing, education, investment, and other purposes.
• MediSave Account (MA): MA savings are used for healthcare expenses, such as hospitalisation and surgery.
• Special Account (SA): SA savings are set aside for retirement.

At age 55, a Retirement Account (RA) is created for CPF members. When members reach retirement age, they can start withdrawing money from their RA to receive monthly payouts.

CPF plays an important role in helping Singaporeans achieve financial security in retirement. It also provides a safety net for healthcare and housing needs.

Here are some of the key benefits of CPF:

• Retirement income: CPF provides a guaranteed stream of income in retirement. CPF members can choose to receive their payouts in the form of monthly payouts, a lump sum, or a combination of both.
• Healthcare coverage: CPF covers the cost of healthcare expenses, such as hospitalisation and surgery. This helps CPF members to afford quality healthcare without having to worry about financial constraints.
• Housing support: CPF members can use their CPF savings to purchase a home or to pay for their housing loan. This helps CPF members to achieve their dream of homeownership.

CPF is a key pillar of Singapore’s social security system. It plays an important role in helping Singaporeans achieve financial security in retirement, and in providing healthcare and housing support.