SINGAPORE – Central Provident Fund (CPF) members’ balances have hit a new high, exceeding half a trillion dollars as at the end of last year.
Their balances grew by 9.4 per cent to $505.7 billion – from $462.1 billion in 2020 – according to the CPF Board’s annual report released on Monday (July 4).
A record $18.3 billion in interest was paid to members last year. In 2020, members received $16.8 billion in interest.
Voluntary top-ups of Special and Retirement Accounts also climbed to a new high of $4.8 billion last year, up from $3 billion in 2020, said the report.
The top-ups were made by 294,000 CPF members, with about half topping up for the first time.
However, the amount withdrawn for housing has gone up. Some 996,000 members used a total of $21.9 billion of their CPF savings for housing needs last year – a jump from the $17.3 billion in 2020.
The improvements in the balances – and consequently the interest received – reflect Singapore’s economic performance last year, said observers. This has elevated wages earned and hence CPF contributions.
The increase in interest paid is mainly driven by the larger balances held by CPF members, while the rise in amount drawn for housing is indicative of the healthy property market that has seen price growth, said Professor Lawrence Loh from the National University of Singapore Business School.
“Going forward, it is expected that the increase in CPF balances will be sustained due to the recovery of the economy, including the various pandemic-hit sectors,” he added.
In 2021, the number of CPF members increased by 2 per cent to 4.1 million.
About 416,000 members received monthly CPF retirement payouts totalling $2.2 billion last year.
Of these, more than 85,000 members are on the CPF Life scheme, which provides a lifelong monthly payout that begins when the member turns 65 years old.
