Chapter 4: Introduction To CPF

Introduction

Welcome to Chapter 4 of Money Moves: Introduction To CPF. The Money Moves Series is designed to be actionable with bite-sized knowledge to improve your financial well-being! Let’s learn about how the CPF works in Singapore.

Central Provident Fund Account Singapore

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, healthcare, home ownership, family protection, and asset enhancement. In other words, CPF’s main purpose is to provide financial security for people in Singapore to be financially independent throughout our financial life stages.

Given that there are opportunity costs to every decision made, the CPF aims to complement the financial portfolio with limited flexibility. By limiting the options available in CPF, the government is able to make financially sound decisions on our behalf, thereby ensuring that most people will be financially safe until retirement.

Introduction to CPF Accounts

There are 4 accounts that you will have in CPF.

The Ordinary Account (OA) is used for your housing, insurance, and investments.