The Central Provident Fund (CPF) is a mandatory savings scheme for all Singaporean citizens and permanent residents. It is designed to provide financial stability and security in retirement, healthcare, and housing. Within the CPF, there are various schemes that cater to different needs and goals. Let’s take a closer look at the three main CPF accounts: Ordinary Account (OA), Special Account (SA), and Medisave Account (MA).
The Ordinary Account is primarily used for housing purposes, such as purchasing a home or paying for monthly mortgage payments. It also serves as a flexible account for other investments or expenses. The Special Account, on the other hand, focuses on long-term savings for retirement. The money in this account earns a higher interest rate and can be used for investments or to enhance retirement income. Lastly, the Medisave Account is for medical expenses, such as hospital bills and insurance premiums. It promotes a self-sufficient healthcare system and ensures that Singaporeans have enough savings for their medical needs.
Aside from these three main accounts, there are also other CPF schemes available, such as the Retirement Sum Scheme, which allows members to withdraw a monthly amount from their combined CPF savings to support their retirement needs. There’s also the CPF Investment Scheme, which allows members to invest their CPF savings in various approved investments for potentially higher returns.
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