Developing a saving habit early allows you to better prepare for your retirement. To see tangible increases in your savings account, set aside 15% - 20% of your salary each month for a start. Draw up a budget and make a plan for your savings and investments to help meet your financial goals.
Your CPF Accounts
The Central Provident Fund (
is a comprehensive social security
savings plan, which helps meet your
retirement, housing and healthcare
needs. Each month, you and your employer contribute to your CPF, which consists of three different accounts: Ordinary Account, Special Account and Medisave Account.
Through schemes such as Workfare and Medisave top-ups for senior citizens, the Government also
helps to supplement the CPF
savings of lower-wage workers.
A summary of the interest rates and uses
for each account is shown below:
As a new entrant to the workforce, your contributions to your CPF accounts each month totals 37%, with 20% coming from your salary and 17% coming from your employer*. Do note that if you are a Singapore Permanent Resident, your contributions will start at a lower rate and grow to 37% after two years.*Based on CPF contribution rate for employees 35 years old and below (for monthly salary ≥ $750). CPF contributions are payable for your monthly salary of up to $5,000.
Find out more about CPF contribution and allocation rates
Use the CPF Contribution Calculator
to calculate your monthly
Knowing Your Employment Rights
If you work in Singapore, you are entitled to employment rights,which include minimum terms and conditions of employment, as well as rights and responsibilities of employees and employers under a contract of service.This extends to mandatory CPF contributions by your employer, as long as you earn more than $50 a month.
Find out more about your employment rights here.
Dependants' Protection Scheme
It is always good to be prepared for the unexpected, especially when you have just started working.
If you are at least 21 years old and have made your first CPF contribution, you will automatically be covered under the Dependants' Protection Scheme. The Dependants' Protection Scheme is an affordable term insurance that provides coverage of up to $46,000
. The Dependants' Protection Scheme benefit will be paid out to you and
/your family members should you become permanently unfit for work or pass away.You can use the monies from your Ordinary Account
and/or Special Account or cash to pay for the annual premiums.
Your education loan is likely to be one of your first financial obligations. Just like any other loan, if you had used CPF savings for your education, you will need to repay this loan (including interest accrued) to the CPF account that you used.
Repayment of the education loan
begins one year after your graduation or the termination of studies, whichever is earlier. About three months before the start of the repayment, you will receive a package with the
loan repayment details. You can
begin repaying your loan earlier if you have additional cash in hand.
Find out more about the CPF Education Scheme here
Having started work recently, you may be keen to make investments and grow your savings as part of your financial plan. Remember that all investments come with risks, so it is good to be familiar with investment concepts and products before embarking on any investment plans. Learn more about basic investing concepts here before you start investing here.
You may have thought of using your CPF savings for investment purposes. The CPF Investment Scheme allows you to do so through various investment products.
To make an investment using your CPF savings, you should:
- Be at least 18 years old;
- Not be an undischarged bankrupt; and
- Have more than $20,000 in your Ordinary Account and/or more than $40,000 in your Special Account
Find out more about CPF and Investing.
Growing Your Savings
To help you grow your CPF
savings and earn attractive risk-free interest rates, you can consider
making top-ups beyond the mandatory CPF contributions. This can be
through the CPF Retirement Sum Topping-Up Scheme and by making CPF
The Retirement Sum Topping-Up Scheme allows you to
- Top up with cash or transfer your CPF savings
- Top up your own or your loved ones'* Special Accounts (below age 55) or Retirement Accounts (age 55 and above)
up with cash or a CPF transfer to the Full Retirement Sum (below age
55) or Enhanced Retirement Sum (age 55 and above) gives the opportunity
to enjoy a higher monthly payout
for life. You can enjoy tax relief of up to $14,000 per year if you
use cash to top up for yourself (up to $7,000) and your loved ones (up
You can also
make voluntary contributions, through a lump sum payment or GIRO, to
build up you and/or your loved ones' CPF savings. Voluntary
contributions to all your CPF accounts (Ordinary, Special and Medisave
Accounts) are subject to the approved limit and do not qualify for tax
deduction. However, voluntary contributions to your Medisave Account
alone are tax deductible.
For more information on making voluntary contributions, click here
*"Loved ones" include only your parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings.
Supplementary Retirement Scheme
The Supplementary Retirement Scheme is a voluntary scheme that allows you to save for retirement, to supplement your CPF savings. Both you and your employer can participate in this scheme and enjoy tax reliefs.
Acquiring new skills and knowledge continuously
can help open up new
opportunities for you in your career.
The Workforce Development Agency (WDA) provides a one-stop
platform with various training and certification courses.
to find out more.
Thinking about and starting to saving early helps you better prepare for different needs that may arise in the future. Your CPF savings will provide you with monthly payouts during retirement, to take care of your basic needs. You can grow your savings early to secure your nest egg by leveraging on the various CPF schemes that are available.