| Employee Age (Years) |
Contribution Rate
(for monthly wages ≥ $1,500) |
Credited into
| ||||
| Contribution by Employer (% of wage) | Contribution by Employee (% of wage) | Total Contribution (% of wage) | Ordinary Account (% of wage) | Special Account (% of wage) | Medisave Account (% of wage) | |
| 35 & below | 16 | 20 | 36 | 23 | 6 | 7 |
| Above 35-45 | 16 | 20 | 36 | 21 | 7 | 8 |
| Above 45-50 | 16 | 20 | 36 | 19 | 8 | 9 |
| Above 50-55 | 14 | 18.5 | 32.5 | 13.5 | 9.5 | 9.5 |
| Above 55-60 | 10.5 | 13 | 23.5 | 12 | 2 | 9.5 |
| Above 60-65 | 7 | 7.5 | 14.5 | 3.5 | 1.5 | 9.5 |
| Above 65 | 6.5 | 5 | 11.5 | 1 | 1 | 9.5 |
Above is info extracted from CPF website on the date of this article is published. Take this figures as reference.
What is CPF to us?
In fact, not all of us know how to use it correctly. CPF is an amount of money set aside "forcefully" for retirement. Unless you have your own saving, otherwise don't clear up the account on risky investment. You may think inflation may be higher than CPF interest rate but the intention of CPF interest rate is to adjust against inflation (not to gain interest rate).
Let's set aside for now.
The key point here is to understand contribution by both employer and employee reduces by age. The percentage of contribution is credited into different account is also based on age. Investment or loan installment should be considered accordingly. Think also unemployed bad days or one of you is unemployed. Installment of $2,000 is very serious when you are unemployed.
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