What is the Central Provisional Fund?

Central Provident Fund (CPF) is a Singapore Social Security Plan created in 1955. Like the American Social Security Plan, it has been designed to provide the working class in their retirement. Since its development, the Central Provisional Fund has grown not only to include the provisions for retirement of members, but includes the ownership of the house, health care, insurance plans and family education. The savings plan is financed from the mandatory contributions of employees and employers. He was established to support gentle life and confidence, unlike relying on state or government aid for the working class. The only purpose of the CPF, when it was created, was to provide employees with financial security during their retirement and the savings could only be withdrawn after the person was reunated. As the needs of people changed, the plan was revised to allow selection of house shopping, college loans, health care and investment, as well as retirement.

Mandatory funding rates for Central Provident Fund have also changed over the years. At the end of the 1960s, 25 percent of the employee and the company paid by the employee and the company reached the level of contributions. This caused a total of 50 percent of the worker's earned income. Since then, rates have been fluctuating in response to the nation's economic state and employees pay different amounts depending on their age. Of the total amounts that contributed, some percentages are devoted to their retirement, called ordinary; Medical, called Medisave; And the expenditure called Special, accounts with the largest amount that is still stored for retirement.

CPF payments are guaranteed and earnings are not subject to taxes. Earnings per member of the member may vary because several investment options are available. The main focus is a reasonable decision and the CPF Council provides information that helps their members in decision -makingon investments and savings.

The Central Provisional Fund is to provide a comfortable retirement and social and economic insurance. It encourages Singaporeans to work and allows them to support themselves and their family. Since most CPF accounts cover three generations, members can use savings to care for themselves, their spouses, children, parents and siblings. This has developed a central interim fund from a simple retirement plan for a comprehensive life saving plan.