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Core Financial Pillar

CPF & National Schemes

Pillars
6 Pillars
Focus
Optimization

Your Central Provident Fund is more than just savings. We help you maximize every dollar across retirement, healthcare, housing, and tax optimization through strategic planning and government scheme utilization.

Understanding CPF

What is the Central Provident Fund?

The CPF is Singapore's comprehensive social security system that helps citizens and permanent residents save for retirement, healthcare, and housing. Both employees and employers contribute monthly to build your CPF savings.

37%
Total Contribution Rate
(for age ≀55)
2.5%
OA Interest Rate
(per annum)
4%
Special & MediSave
Interest Rate (p.a.)
+1%
Extra Interest
(first $60K combined)

Account Structure

Your 3 CPF Accounts Explained

Your CPF contributions are allocated into three accounts, each designed for specific life needs

🏠

Ordinary Account (OA)

Interest Rate 2.5% p.a.
Allocation (age ≀35) 23%

What it's for:

  • Housing purchases (HDB/Private)
  • CPF Investment Scheme (CPFIS)
  • Education (self, spouse, children)
  • Insurance premiums
πŸ’‘ Most flexible account for immediate needs
β˜… Highest Interest
🎯

Special Account (SA)

Interest Rate 4% p.a.
Allocation (age ≀35) 6%

What it's for:

  • Retirement savings (primary purpose)
  • Investment (CPFIS approved products)
  • Transfers to Retirement Account at 55
  • Top-ups for tax relief (up to $8K/year)
πŸ’‘ Best for long-term wealth building
πŸ₯

MediSave Account (MA)

Interest Rate 4% p.a.
Allocation (age ≀35) 8%

What it's for:

  • Hospitalization expenses
  • MediShield Life premiums
  • Integrated Shield Plan premiums
  • Approved outpatient treatments
πŸ’‘ Your healthcare safety net
55

Milestone

Retirement Account Created

SA

Special Account used first

Transferred to form your Retirement Account

OA

Ordinary Account tops up if needed

To meet the Full Retirement Sum

2026 Full Retirement Sum

$220,400

Amount above FRS

Can be withdrawn in cash

65

Milestone

CPF LIFE Payouts Begin

Monthly payouts for life

Never run out of retirement income

Defer up to age 70 for higher payouts

The longer you wait, the more you receive

Est. Monthly Payout (FRS)

$1,570 to $1,750

3 Plan Options

Standard, Basic, Escalating

Contribution Breakdown

How Your CPF Contributions Work

Both you and your employer contribute to your CPF every month. Here's how the allocation changes with age.

Age Group Employee Employer Total Ordinary (OA) Special (SA) MediSave (MA)
55 and below 20% 17% 37% 23% 6% 8%
Above 55 to 60 15% 15% 30% 16.5% 4.5% 9%
Above 60 to 65 10.5% 11% 21.5% 10% 3.5% 8%
Above 65 to 70 7.5% 9% 16.5% 4% 2.5% 10%
Above 70 5% 7.5% 12.5% 1% 1% 10.5%

Note: These rates apply to Singapore Citizens and SPR (3rd year onwards) earning more than $750/month. Self-employed persons contribute to MediSave only.

Extra Interest on First $60K

You earn an extra 1% interest on the first $60,000 of your combined CPF balances (with up to $20,000 from Ordinary Account). This means your effective interest rate on Special Account and MediSave Account can reach up to 5% p.a.!

Effective Special Account Rate: Up to 5% p.a.

Additional +1% for Age 55+

Members aged 55 and above earn an additional 1% extra interest on the first $30,000 of combined balances (with up to $20,000 from Ordinary Account). This means you can earn up to 6% p.a. on your Retirement Account!

Effective Retirement Account Rate: Up to 6% p.a.

Common Misconceptions

CPF Belief vs Reality

Belief

"CPF is just government taking my money"

Reality

CPF is your money earning 2.5-4% interest risk-free - higher than most savings accounts. You can use it for housing, healthcare, and guaranteed retirement income via CPF LIFE.

Belief

"I'll never be able to access my CPF"

Reality

You can use CPF OA for housing and education. At 55, you can withdraw savings above the FRS. At 65, CPF LIFE provides guaranteed monthly income for life.

Belief

"I should invest my CPF in stocks for better returns"

Reality

Studies show most CPF investors underperform the OA/SA interest rates. The 4% SA rate is hard to beat consistently with low risk. Consider keeping core retirement funds in CPF.

Comprehensive Coverage

Explore the 6 Pillars

Click any pillar to discover optimization strategies that maximize your government benefits

Strategic Approach

The Right Order Matters

Execute in this sequence for maximum benefit

1
CPF Special Account Top-up
2
SRS Contribution
3
Insurance Gaps
4
Housing Grants
5
Invest Surplus

Need a Personalized Roadmap?

We will analyze your situation and show you exactly how to optimize across all schemes.