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CPF Overview<table border="0" cellspacing="2" cellpadding="1" style="width:100%;height:auto;"><tbody><tr><td width="80%"><p> <span class="SubTopicHeader ">What is CPF?<br><font size="3"><br></font></span>The Central Provident Fund (CPF) is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, home ownership, family protection and asset enhancement.<br></p></td><td width="20%">            <img alt="CPF Logo" src="/Assets/members/PublishingImages/About%20Us%20-%20Overview/CPFLogo.jpg" class="img-responsive" /></td></tr></tbody></table><p> <span class="SubjectHeader"><br>How does the CPF system work?<br></span><font size="3"><br></font>Both employees and employers make monthly CPF contributions. These contributions go into three accounts:</p> ​​ <table cellspacing="0" border="1" class="ms-rteTable-default" style="width:100%;"><tbody><tr class="ms-rteTableEvenRow-default" bgcolor="#f1f1f1"><td class="ms-rteTableEvenCol-default" colspan="2" style="width:50%;border-style:solid;"><div style="text-align:center;"> <strong>​Uses of CPF Savings</strong></div></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#d2d2d2" style="width:30%;"> <strong>​Ordinary Account (OA)</strong><br></td><td class="ms-rteTableOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:70%;"> <span style="color:#444444;"><span>​For housing, insurance, investment and education.</span><br></span></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#d2d2d2" style="width:30%;"> <span style="color:#444444;"><span>​</span><strong>Special Account (SA)​</strong><br></span></td><td class="ms-rteTableOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:70%;"> <span style="color:#444444;">​​​For old age and investment in retirement-related financial products.</span><br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#d2d2d2" style="width:30%;"> <span style="color:#444444;">​</span><strong style="color:#444444;">Medisave Account (MA)​</strong><br></td><td class="ms-rteTableOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:70%;"> <span style="color:#444444;">​​For hospitalisation expenses and approved medical insurance.</span><br></td></tr><tr class="ms-rteTableFooterRow-default"><td class="ms-rteTableFooterEvenCol-default" rowspan="1" bgcolor="#d2d2d2" style="width:30%;"> <span style="color:#444444;">​<span><strong>Retirement Account (RA)</strong></span><br></span></td><td class="ms-rteTableFooterOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:70%;"> <span style="color:#444444;">​On your 55th birthday, a fourth account, the Retirement Account (RA), is automatically created</span><br></td></tr></tbody></table> <br> <br> <table cellspacing="0" class="ms-rteTable-default" style="width:70%;"><tbody><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" colspan="2" bgcolor="#f1f1f1" style="width:50%;"><div style="text-align:center;"> <strong>​Interest Rates*</strong><br><strong><em>Click here for the latest </em></strong> <a href="/Members/AboutUs/about-us-info/cpf-interest-rates"> <strong> <em>inter​est rates.​</em></strong></a><br></div></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#d2d2d2" style="width:30%;"> <strong>​Ordinary Account (OA)</strong><br></td><td class="ms-rteTableOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:40%;text-align:center;">Currently up to 3.5%.<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#d2d2d2"> <span style="color:#444444;"> <span>​</span><strong>Special Account (SA)​</strong><br></span></td><td class="ms-rteTableOddCol-default" rowspan="3" bgcolor="#f1f1f1 " style="text-align:center;padding:35px;width:40%;"> <span style="color:#444444;">​​​Currently up to 5%.</span><br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#d2d2d2"> <span style="color:#444444;">​</span><strong style="color:#444444;">Medisave Account (MA)​</strong><br></td></tr><tr class="ms-rteTableFooterRow-default"><td class="ms-rteTableFooterEvenCol-default" rowspan="1" bgcolor="#d2d2d2"> <span style="color:#444444;">​<span><strong>Retirement Account (RA)</strong></span><br></span></td></tr></tbody></table><div>* Your CPF savings in the Ordinary Account earn a guaranteed interest rate of 2.5% per year, while savings in the Special Account and Medisave Account earn interest rates of 4% per year. The first $60,000 of your combined CPF balances, of which up to $20,000 comes from your Ordinary Account, earns an additional 1% interest per year.​​</div><div> <br> <p> <span class="SubjectHeader"> <font size="3"> <br></font>Building your CPF savings for a secure retirement<br></span><font size="3"><br></font><span class="SubjectHeader"></span>As Singaporeans live longer, we will need a steady stream of income to meet our living expenses.  Statistics have shown that today, 1 in 2 Singaporeans aged 65 is going to live to age 85 and 1 in 3 is going to live to age 90 and beyond.​</p><p>   <img alt="Singaporeans are living longer" src="/Assets/members/PublishingImages/About%20Us%20-%20Overview/AboutUs_BuildingCPFsavingsforasecureretirement.jpg" style="width:61.1%;height:auto;" /> <br></p><p>It is important that you build up your CPF savings to have peace of mind in your retirement years. Plan the use of your CPF savings wisely to ensure you have: <br></p> <font face="Times New Roman"> </font> <font face="Times New Roman"> </font> <table width="100%" class="MsoTableGrid" border="1" cellspacing="0" cellpadding="0" style="border:currentcolor;border-collapse:collapse;"><tbody><tr><td width="auto" valign="top" style="padding:0cm 5.4pt;border:1pt solid windowtext;width:426.25pt;background-color:transparent;"><ul><li><p> <strong>Retirement savings to meet your basic living expenses in old age</strong><br style="text-decoration:underline;"><br style="text-decoration:underline;">Your CPF savings will provide you with a monthly income to meet your basic living expenses in old age. You are encouraged to supplement your retirement savings with your personal savings.<br>​<br></p></li></ul><ul><li><p> <strong>A property that is fully paid-up when you retire</strong><br style="text-decoration:underline;"><br style="text-decoration:underline;">Map out your finances carefully when you buy a home. Buy a home that you can afford, so that your home will be fully paid-up when you retire. <br>              <font color="#000000" face="Times New Roman"> </font></p></li></ul><ul><li><p> <strong>Sufficient savings for future medical expenses as you grow older</strong><br style="text-decoration:underline;"><br style="text-decoration:underline;">Savings for future medical expenses is important as the need for medical care increases significantly as you grow older. Use your Medisave wisely by staying in affordable wards when hospitalised and consider buying a suitable medical insurance plan such as MediShield to help mitigate large medical expenses.</p></li></ul> <br> </td></tr></tbody></table><p> </p><p>For more information, you may also refer to our <a href="/Assets/members/Documents/RetirementPlanningBooklet.pdf" target="_blank">Retirement booklet</a> (PDF, 1.9MB).</p></div>CPF OverviewTrueTrueTrue

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