Central Provident Fund (CPF)

What is Central Provident Fund (CPF)?

Central Provident Fund (CPF) is a compulsory social security savings scheme for all working Singaporeans to fund their retirement, healthcare and housing needs.

How does Central Provident Fund (CPF) work?

Working Singaporeans and their employers make monthly contributions to their CPF and these contributions will go into 3 accounts, namely the Ordinary Account, the Special Account and the Medisave Account.

The Ordinary Account is primarily used for retirement and housing needs, the Special Account for retirement needs and the Medisave Account for healthcare needs.

The Interest Rate on Ordinary Account is currently at 2.5% per annum and the interest Rate on Special and Medisave Account is at 4% per annum. An extra 1% interest per annum is currently paid on the first $60, 000 of a member’s combined balances with up to $20,000 from Ordinary Account.

CPF members aged 55 and above will also earn an additional 1% extra interest on the first $30,000 of their combined balance with up to $20,000 from the Ordinary Account. Therefore CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.

When a Singaporean reaches 55 years old, savings from his Ordinary and Special Account will be transferred to his Retirement Account to form his retirement sum. He will also be able to make a withdrawal from his Ordinary and Special Account Savings, with the withdrawal amount being dependent on the cash balances in his Ordinary and Special Account at that time.


The Basic Retirement Sum, is the minimum amount required for the Retirement Account. This sum increases every year so as to account for long-term inflation.

At the age of 65, Singaporean will then be able to receive monthly payouts from their CPF savings, with the payout amount dependent on the amount left in his Retirement Account.