Contributions to your CPF are made by both you and your employer, which are allocated across your Ordinary Account (OA), Special Account (SA), and MediSave Account (MA) based on your age group. These contributions are essential for building your savings for retirement, healthcare, and housing needs.
Key Points on CPF Contributions:
- Employee and Employer Contributions: The total contribution rate varies by age, ensuring that you accumulate sufficient savings while maintaining take-home pay.
- Contribution Allocation: As you age, the allocation shifts to bolster your retirement and healthcare savings, reflecting changing financial priorities.
CPF Schemes: Tailoring Your Financial Plan
CPF offers a range of schemes designed to provide financial security and support for various needs. Here’s an overview of some pivotal schemes:
CPF LIFE
CPF LIFE is a lifelong income scheme for your retirement, ensuring you receive monthly payouts no matter how long you live. It’s designed to provide you with financial independence and peace of mind in your golden years.
Home Ownership Schemes
Leverage your OA savings to purchase a home under CPF housing schemes. These schemes make owning a home more affordable and are a cornerstone of financial planning for many Singaporeans.
Healthcare Schemes
Your MA plays a critical role in managing healthcare expenses. It can be used for hospitalization, selected outpatient treatments, and for paying premiums for MediShield Life and other approved insurance schemes.
Education Scheme
The CPF Education Scheme allows you to use OA savings to fund tertiary education for yourself or your children, making it easier to invest in the future without financial strain.
Investment Schemes
The CPF Investment Scheme (CPFIS) permits you to invest your OA and SA funds in various instruments, offering the potential to grow your retirement savings beyond the interest rates provided by CPF.