Singapore Central Provident Fund - CPF

Alike with many countries around the world, all of the working citizens in Singapore will need to contribute a fixed percentage amount of their salaries to a fund known as CPF or Central Provident Fund. Though however, the major purpose of the Central Provident Fund is aimed to provide all of the working class citizens in the country of Singapore a sense of security. For the Singapore Central Provident Fund, in order to provide a comfort retirement to the working class citizens, the Central Provident Fund of Singapore is actually a social security savings plan where the overall scope and benefits of CPF revolves around retirement, healthcare, home ownership, family protection and asset enhancement.

For a brief history of the Central Provident Fund of Singapore, the milestone of Central Provident Fund can be tracked back roughly to the year 1955 where the Central Provident Fund was first introduced on 1st of July to the general public. In the early days, the employees can only withdraw the fund from Central Provident Fund when they retire though however, soon after Singapore gained its independence in the year 1965, during the year 1968, the Singapore PAP government allowed their local citizens to use part of their Central Provident Fund savings to purchase flats built by the Housing and Development Board. In the year 1984, a new scheme known as the Medisave was introduced to the general public. For the Medisave, the scheme is aimed at individuals who need to pay for their own or their immediate family members hospitalization expenses. With the introduction of the fund, employees can now use the Central Provident Fund savings to pay for their own and as well as their immediate family members medical expenses. In addition to Medisave, MediShield which is a medical insurance scheme was introduced in the year 1990 in order to help all of the members to sustain and pay for long term medical expenses which arise from serious illness. Aside from health care, members of the Central Provident Fund of Singapore are also given an option to buy Singapore Telecom share at a discounted rate in order to encourage passive investment within the members. However, with the new generation of baby boomers coming into employment, more and more people are interested to earn through investment so therefore, a Central Provident Fund investment scheme were introduced in the year 1997.

As mentioned earlier, the purpose of the Central Provident Fund is to provide a safe yet comfortable buffer for all of the working class citizens of Singapore to retire without any worries. As such, the Central Provident Fund centers around the retirement, the healthcare, the home ownership, family protection and as we as asset enhancement of future retirees, ensuring a comfortable retirement for all of the working class citizens of Singapore who has been endless contributing to the country’s economy.

Singapore Central Provident Fund Official Website

http://www.cpf.gov.sg/

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