Central Provident Fund


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The Singapore Central Provident Fund (CPF) is a compulsory savings plan created in 1955 for working Singaporeans and permanent residents (PR) primarily to fund their retirement, healthcare and housing needs. It is administered by the Central Provident Fund Board, a statutory board under the Ministry of Manpower (MOM).

Singaporeans were required from 1987 to set aside a portion of their income to their CPF until the age of 55 to provide them with a basic monthly income when they retire. At age 55, the CPF savings may be withdrawn after setting aside the CPF minimum sum. The CPF minimum sum may be used to purchase life annuity from a participating insurance company, placed with a participating bank or left in the retirement account with the CPF Board.

From 62 (current draw-down age), monthly payments shall be given from the CPF Minimum Sum to help meet basic needs in retirement. If life annuity had been purchased, a monthly income for life shall be given. If the CPF minimum sum is left with a participating bank or with CPF Board, monthly income shall be given till the CPF minimum sum is exhausted. Monthly payouts may be started later; it is beneficial in that way since payouts will last longer. For example, if the payouts were started at age 63 instead of 62, they can last till age 84 instead of 82.

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