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Central Provident Fund (CPF)
Singapore's compulsory savings scheme — the fund that pays for its members' homes, hospital bills and retirement
Active — Active and still expanding. Established on 1 July 1955 as a compulsory savings scheme for workers, CPF now covers retirement, housing and healthcare for Singapore Citizens and Permanent Residents, with contribution rates of up to 37% of wages in 2026 and lifelong monthly payouts under CPF LIFE from age 65.
The Central Provident Fund was established on 1 July 1955, when Singapore was still a British colony. It was implemented by the colonial authorities on a proposal from David Marshall's Progressive Party as a compulsory savings scheme to help workers provide for their own retirement, instead of introducing the costly old-age pensions common in Britain at the time. When it began, employees and employers each contributed 5% of an employee's pay. Contribution rates rose steadily over the following decades, reaching 25% each by 1985.
What made CPF unusual was how far beyond retirement it was allowed to reach. In 1968 it was extended to housing under the Public Housing Scheme, letting members use their savings to buy and service loans on HDB flats — a move that helped turn Singapore into a nation of home owners. In 1984 it was extended to medical care, and in 1990 the MediShield insurance scheme was launched on top of it. An investment option followed in 1986, the Minimum Sum (now the Retirement Sum) in 1987, and later the Workfare Income Supplement and Pioneer Generation Package for lower-income and older members.
CPF is funded by mandatory monthly contributions from both employer and employee, and it is administered by the Central Provident Fund Board, a statutory board under the Ministry of Manpower. Savings are held in three accounts: the Ordinary Account, which can be used for housing, insurance, investment and education; the MediSave Account, for hospitalisation and approved medical insurance; and the Special Account, for old age and retirement-related investment. At age 55 the Special Account is closed and a Retirement Account is created, funded first from the Special Account and then from the Ordinary Account, up to the Full Retirement Sum.
From the Retirement Account, members can take monthly payouts, and most will join CPF LIFE, the national longevity insurance annuity scheme that pays a monthly income for as long as the member lives. CPF savings are not a tax — the money belongs to the member — and the Board invests the fund in Special Singapore Government Securities, which are guaranteed by the Singapore Government. The scheme is also one of the most politically discussed policies in the country, with recurring debate over how much members may withdraw at 55, whether the retirement sums are adequate, and how the interest earned compares with private alternatives.
Quick facts
- Established
- 1 July 1955
- Run by
- Central Provident Fund Board, under the Ministry of Manpower
- Covers
- Singapore Citizens and Permanent Residents in employment
- The accounts
- Ordinary, Special, MediSave, and Retirement (from age 55)
- Contribution rate (2026)
- Up to 37% of monthly wages for members aged 55 and below
- Pays for
- Retirement, housing, healthcare and approved insurance
- Lifelong payouts
- CPF LIFE, from age 65
- Retirement sums (2026)
- BRS $110,200; FRS $220,400; ERS $440,800
- Global ranking
- A grade in the 2025 Mercer CFA Institute Global Pension Index
Sources
- CPF overview — CPF Board (2026-09-15)
- Your complete guide to retirement planning in Singapore (2026) — CPF Board (2026-09-15)
- CPF LIFE — CPF Board (2026-09-15)
- CPF Board marks 70th anniversary with launch of PLAN with CPF and commemorative book — CPF Board (2026-09-15)
- Central Provident Fund - Wikipedia — Wikipedia (2026-09-15)
- Mercer CFA Institute Global Pension Index 2025 — Mercer (2026-09-15)
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