Singapore’s Central Provident Fund (CPF) is a savings scheme that serves as a safety net for retirement, housing, and healthcare needs. For many working individuals, CPF savings play a crucial role in ensuring a comfortable and financially stable retirement. However, with increasing life expectancy and rising cost of living, it is important to have effective strategies in place to maximize your CPF savings. Here are three practical ways to make the most out of your CPF and secure a better future for yourself.
1. Contribute More Regularly – Consistency is key when it comes to CPF savings. Consider increasing your contributions by topping up your Special Account (SA) or Retirement Account (RA) with your Ordinary Account (OA) savings. This can bring higher returns in the long run, as CPF offers an attractive risk-free interest rate. Plus, topping up your SA or RA can help to lower your taxable income, resulting in potential tax savings.
2. Opt for CPF Investment Schemes – For individuals who are comfortable with a slightly higher risk, CPF offers various investment schemes that can yield higher returns on your savings. These include the CPF Investment Scheme (CPFIS) and the CPFIS-OA (Ordinary Account) for those under 55, and the CPF Investment Scheme-RA (Retirement Account) for those above 55. Do your