What is the Central Provident Fund (CPF)?
The Central Provident Fund is a comprehensive social security savings plan in Singapore, providing working Singaporeans and permanent residents with funds for retirement, healthcare, and housing.
Explanation:
Both employees and employers contribute to CPF, which is divided into three accounts: Ordinary, Special, and Medisave, each serving different needs.
Practical Example of the Central Provident Fund (CPF):
A marketing executive in Singapore sees a portion of her salary and a matching contribution from her employer go into her CPF accounts, helping her save for retirement, medical expenses, and housing needs.