Retirement is an important phase of everyone’s life thatis in the job industry or the sports industry or the entertainment industry. This is the time when you decide based on your capability that when you are unable to push your body or your mind to do that particular job you retire. For some companies, it focuses on Government employees who have their retirement age fixed in Singapore which is 63. Through this article, the readers and the viewers will learn about the retirement plan benefits the government is ready to pay for their retirement, and how you will determine by looking at some basic features that you are ready for retirement.
What is CPF?
CPF or Central Provident Fund is a monthly pension amount paid by the government of Singapore after the individual has turned 65 years of age retired or not retired. CPF falls under the Central Provident Fund Board which is controlled by the Ministry of Manpower in Singapore. CPF is collected by the government from the very first year of your job and will be taken till you have reached the age of 55. This is a social security savings scheme where a certain amount is deducted from your salary to get invested in the government CPF account. And after the age of 65, you will receive this amount every month till you reach the age of 95. Before you are 55 years you will get 5% on the first S$ 60000 and after 55 years 6% on S$ 30000 for the first and 5% on the second amount. The government permits the individual can withdraw money from their CPF account as they reach 55 years of age. This fund is the prime pillar of Singapore’s social security system.
The extra amount of interest paid in your account every year till you reach the age of retirement here in Singapore-
- On your savings account or recurring accounts- 5% is given for retirement and housing needs. And you can withdraw a maximum amount of S$ 5000 from your account before you reach the age of 55 and reach the Basic Retirement Sum amount.
- On your joint and fixed bank account- 4% is given for retirement plan needs. Here from this account, you can withdraw a maximum amount of S$ 5000 from this Special Account category before you meet the Basic Retirement Sum will happen when you reach 55 years of age.
- On your MediSave account- 4% is given for healthcare needs.
- On your retirement saving plan account- a 4%
To conclude, the above-mentioned article gives you the detail about the retirement plan that is preset by the government.