Central Provident Fund - CPF

AAA

DEFINITION of 'Central Provident Fund - CPF'

A mandatory benefit account set up to provide Singaporeans with a healthy retirement plan. The Central Provident Fund (CPF) was first introduced in 1948 by the Progressive Party to help ensure that Singaporeans would save up for retirement. Many people disagreed with the idea but it was believed that making this fund compulsory would give security and assurance to retirees.

INVESTOPEDIA EXPLAINS 'Central Provident Fund - CPF'

Rates of contribution vary depending on the employee's age. For example, members that are 35 years old or younger must contribute approximately 33% of total wages to the fund. This breaks down to the employees contributing 20% of their wages and their employers contribute the remaining 13%.

The purpose of the fund was to ensure that those entering retirement had the healthcare and support that they needed. The funds are then managed and invested to obtain an adequate return.

RELATED TERMS
  1. Pension Fund

    A fund established by an employer to facilitate and organize ...
  2. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  3. Return

    The gain or loss of a security in a particular period. The return ...
  4. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
  5. Corporate Pension Plan

    A formal arrangement between a company and its employees - or ...
  6. Case Management

    Planning, processing and monitoring the healthcare services given ...
Related Articles
  1. Budgeting

    Managing Income During Retirement

    Learn some sensible strategies for making your hard-earned savings last for as long as you need them.
  2. Options & Futures

    Retirement Planning Basics

    Realizing your post-work goals need not be daunting. We'll tell you everything you need to know to get - and stay - on track.
  3. Investing Basics

    How did Johnson and Johnson's corporate responsibility policy pay off in 1982?

    How did Johnson & Johnson recover from the tainting of its Extra-Strength Tylenol capsules in 1982? It adhered to its corporate credo of responsibility.
  4. Insurance

    Choosing A Health Plan For Your Chronic Illness

    Thanks to the Affordable Care Act, you can no longer be denied health insurance for having a pre-existing or chronic medical condition.
  5. Savings

    Are Financial Worries Affecting Your Work?

    Financial worries can make employees less productive at work. As a result, the employee was no longer producing quality work and they might get fired.
  6. Retirement

    5 Key Factors Your Financial Plan May Not Address

    When the size of your IRAs and 401(K)s inputs a bunch of figures, out comes the verdict, and either: You're guilty of not saving enough, or you're innocent
  7. Retirement

    Is Retirement Good For You Or Bad For You?

    A neighbor wakes up before 6 a.m. each morning, gets dressed, skulks outside and some days begins looking for parked vehicles of neighbors he doesn't like.
  8. Economics

    Ebola's Economic Impacts on Liberia, Sierra Leone and Guinea

    A summary analysis of projections of how the Ebola outbreak will affect the economies of Liberia, Sierra Leone and Guinea.
  9. Insurance

    How the Affordable Care Act Changed Insurance

    6 Ways Obamacare Impacts the Health Insurance Marketplace
  10. Home & Auto

    Health Insurance: Paying For Pre-Existing Conditions

    If you bring a pre-existing condition to a new insurer, you may find yourself without coverage.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center