CPF Overview


In the realm of financial planning in Singapore, one acronym takes centre stage – CPF, or the Central Provident Fund. A cornerstone of the nation’s social security system, the CPF is a comprehensive savings platform designed to provide financial security across different stages of life. In this blog post, we’ll delve into an overview of the CPF, shedding light on its structure, contributions, withdrawals, and its vital role in shaping the financial landscape of individuals in Singapore.

Understanding CPF Structure:

The CPF comprises three key accounts, each serving distinct purposes:

  1. Ordinary Account (OA): Dedicated to housing and various financial investments, the OA caters to needs like home financing, education expenses, and approved investment instruments.
  2. Special Account (SA): Focused on long-term retirement needs, the SA is designed to accumulate savings with a higher interest rate, ensuring a robust fund for post-work life.
  3. Medisave Account (MA): Geared towards healthcare, the MA ensures individuals have a financial cushion for medical expenses, promoting health and well-being.

CPF Contributions:

The CPF operates on a dual contribution model, with both employees and employers making mandatory contributions based on the employee’s Ordinary Wage (OW). As of the last update in November 2023, the current contribution rates stand at 20% from the employer and 17% from the employee, subject to a cap on the OW at $6,000.

These contributions form the bedrock of the CPF, accumulating over the working years to provide a reliable source of income during retirement. This systematic savings approach fosters financial discipline and ensures a measure of financial security in the later stages of life.

CPF Withdrawals:

While the CPF is primarily geared towards retirement planning, it also accommodates withdrawals for various life needs. Individuals can tap into their CPF savings for housing, education, and medical expenses. However, a portion of the CPF must be retained to guarantee a stable income stream in retirement, emphasizing the fund’s core objective.

CPF Life:

The CPF Life scheme introduces a dynamic element to retirement planning. An annuity scheme, CPF Life guarantees a monthly payout for life, starting at the eligibility age of 65. This ensures a consistent income stream throughout one’s retirement, alleviating concerns about outliving one’s savings.


In essence, the Central Provident Fund is a comprehensive strategy for financial security in Singapore. As individuals navigate their financial journeys, understanding the nuances of CPF – from its three accounts to contributions, withdrawals, and the CPF Life scheme – becomes paramount. Regular updates on CPF policies and staying informed about personalized financial planning options are essential. The CPF is not just a retirement plan; it’s a financial roadmap that guides Singaporeans toward a secure and comfortable future.