This is the Reason why I’m a firm believer of CPF…

Share this article

CPF or Central Provident Fund was designed to be a social security pillar for every Singaporean. Providing one with Income during Retirement, funds for housing and healthcare.

Compulsory contributions are made based on a portion of paid income from employees and employers.

In my previous career, I was offered the option of whether I wanted CPF or not. Given the option where I could consider avoiding the then 20% contribution and have it in my hands instead, it was tempting. But what I was missing out was the 17% contribution I could have earned from my employer.

Some Singaporeans are under the impression that life would be better without CPF in place and they are the best masters of their own money. My experience with the people I come across is that their CPF balances is consistently their most funded account. The main reason is because of the nature of CPF being a form of forced savings that you have little or specific access to until an appointed situation or being of withdrawal age.

This is why CPF is so successful in its design as a pillar of social security, without which many of us might find ourselves in troubling times for milestones like housing, retirement and medical events.

In my next article, I will discuss more on CPF Interest Rates and how it is derived.

Get in touch with me for a complimentary 1-1 consultation to help you plan to meet your financial needs at all stages in your life. Schedule your appointment now via Whatsapp at

Disclaimer: The views expressed here are solely those of the author in his private capacity and not necessarily to the author’s employer, organization, committee or other group or individual.

Picture owned by: Independent SG

Leave a Reply

About Me

Hi, my name is
Joshua Hoong
I’m a Chartered Financial Consultant (ChFC) at ACTS Advisory Group, IPP Financial Advisers specialising in comprehensive Retirement Planning, as well as a Million Dollar Round Table (MDRT) member.

Recent Posts


Select a Child Category

Follow Us