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The golden year in Singapore

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The most favorite aspects of the city are the amalgamation of various Asian cultures and ethnic groups. Furthermore, Singapore is a paradise for retirees.


Pension in Singapore

Singaporeans retire at age 62-65. In Singapore, all pension contributions are deposited into the Central Provident Fund account.

Contributions to the fund are made not only by residents of the country (17%) but also by their direct employers (20%). In total, about 37% of salary payments are spent on it.

The money received is distributed to three accounts

  • The main account. The type of account of the savings goes to future retirement, and the other part can be used for current needs, for example, for buying real estate, paying for education, etc. (about 20%).
  • The special account. The account from which money can be invested in pension financial products or spent on unforeseen expenses (9%).
  • Medical account – funds go to cover medical services (8%).

Thus, even before reaching retirement age, Singaporeans have money at their disposal, with which they can provide themselves with a home, personal transport for the whole family, educate their children and not be afraid for their health.


For different ages – different retirement rates

For Singaporeans under the age of 50, the basic pension contribution rate is 36%. Further, for the inhabitants of the country, the following principle applies: the older the person, the lower his base rate. After 65 years, it drops to 11.5%. At the same time, the procedure for distributing contributions to accounts is also changing: receipts to the main account decrease, and to the special and medical account, they increase.

This principle is beneficial not only for Singaporeans, who with age have the opportunity to make fewer personal contributions to the pension fund, leaving more for their current expenses but also employers – they are more active in employing older people since their base rate is lower than that of young professionals. This approach allows you to maintain a balance of contributions and not leave older people without work, well-deserved money, and social guarantees in old age.


Independent control over pension savings

For those citizens who have reached retirement age, the Singapore authorities offer two ways to use the accumulated funds: to receive the entire amount at once or receive monthly payments for life. At the same time, in case of complete disability or serious illness, Singaporeans can take their savings from the fund ahead of schedule. In any of the options – the right to manage their money remains with the residents of the country.

The approach to savings described above gives Singaporeans one hundred percent social guarantees not only in the future but also in the present. The results of a correct pension policy are best evidenced by the current high level of welfare in the country. According to statistics, the average life expectancy of citizens of Singapore is 82-83 years, 90% of people are provided with housing in the country, and the education of the population is not inferior to the European and American levels.


man and woman sitting on bench near two bikes viewing green field during daytime

Singapore Silver Retirement Support Scheme

The scheme aims to support 20% -30% of Singaporeans aged 65 and over. It focuses only on people with low income. Elderly people who have no other source of support will be included in the Public Assistance network. Pensioners falling under the state program help will be able to receive 790 Singapore dollars a month, plus free medical care.

Unlike the existing retirement support program, the silver scheme is not based on wages. In other words, until you are a retired person over the age of 65, it is not known whether you are eligible for assistance under this scheme or not.



Here are the TOP 5 of the most popular questions about retirement savings in Singapore. 


Where do Singaporeans’ pension assets go?

Central Provident Fund invests savings of depositors in special risk-free government bonds of Singapore. At the same time, the money received from the issue of these special risk-free bonds is used by the country’s Monetary Board for further conversion into foreign assets.


How much return do Singapore depositors get?

A GUARANTEED PROFITABILITY of up to 5% per annum is charged on the pension savings of contributors in the Central Savings Fund.


Can contributors manage their retirement savings themselves?

Yes. The fund has a special investment program that allows investors to independently invest their savings from regular and special accounts in several investment products.

If a person is not sure that he can invest on his own, then he simply leaves money in the fund’s accounts, and guaranteed profitability is charged on them.

To invest consciously, the fund offers its investors to take a special preparatory online course. The course is voluntary.


Can I use my retirement savings to buy a home?

Yes, in Singapore, pension fund contributors are allowed to use the money to purchase both private and public housing.

There are 2 programs: the public housing program and the private property program. The Private Property Program allows Singaporeans to use money from regular and dedicated accounts to buy and build private homes for later use or resale.

Now a simple fact. More than 90% of Singaporeans, citizens, and persons with permanent residence status are homeowners and most of them used their savings to purchase their residential property.

A pension fund investor can get a loan to pay for education for himself, his spouse, children and other relatives in authorized educational institutions. Within a year after graduation, the student is obliged to return the principal amount and accrued interest.


Early withdrawals

Early withdrawals of money from the fund are possible in case of complete disability, or the depositor will be diagnosed with a disease that poses a threat to life, or a diagnosis of an incurable disease.

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