The Central Provident Fund (CPF) is a social security system in Singapore where both employees and employers contribute a portion of the employee’s salary into a retirement savings account. It aims to provide financial stability and support for retirement, healthcare, and housing needs. The CPF Retirement Scheme is a scheme that allows individuals to withdraw their CPF savings upon reaching the retirement age of 65. However, there are certain criteria and considerations that individuals should be aware of before making any withdrawals.

Firstly, the CPF Retirement Scheme is a mandatory scheme for all Singapore citizens and permanent residents. This means that individuals are automatically enrolled in the scheme and contributions are made on their behalf. The CPF savings can be used to supplement retirement income through monthly payouts, purchase of retirement-related products, and even be left to loved ones as a bequest. Secondly, it is important to note that the CPF savings can only be withdrawn at the retirement age of 65, with exemptions for certain medical conditions or for those who choose to defer their retirement. Lastly, individuals should also take into consideration the interest earned on their CPF savings, which is currently at a rate of at least 4% annually. With this in mind, it is crucial for individuals to understand the CPF Retirement Scheme in order to make informed decisions in planning for their retirement.