Singapore has a robust pension system in place, designed to provide its citizens with financial security in their retirement years. As a worker in Singapore, you would have to contribute to one of the three different pension schemes – the Central Provident Fund (CPF), the Supplementary Retirement Scheme (SRS), or the Retirement Sum Scheme (RSS). Each of these schemes caters to different needs and offers various benefits, and it is essential to understand them to make an informed decision about your retirement planning.
The Central Provident Fund (CPF) is the main pension scheme in Singapore, and it is mandatory for all Singaporean and Permanent Resident workers. It is a comprehensive social security scheme that provides retirement, healthcare, and housing benefits. As a worker, you and your employer will make regular contributions to your CPF account, and these funds will be available to you when you reach the retirement age of 65. The Supplementary Retirement Scheme (SRS) is an optional scheme that allows individuals to save more for their retirement by contributing additional funds to a designated account. It offers tax benefits and allows individuals to invest in a range of approved investments. Lastly, the Retirement Sum Scheme (RSS) is designed for individuals who have not met their CPF retirement payout eligibility. It allows them to receive monthly payouts from their CPF savings, providing a steady stream of income in their retirement years.
It is crucial to
