To avoid ‘ paralysis by analysis ’, let’s understand the definition of this fund at first. The Central Provident Fund, commonly known as the CPF, is a fixed benefit account to provide a healthy retirement plan to Singaporeans. The Progressive Party introduced the CPF in 1948 to ensure that all Singaporeans save up for retirement. Purpose of CPF The purpose of this fund was to make sure that those reaching retirement can have a sound support for critical financial needs like healthcare, retirement, and home possession. These funds are then managed and invested to get an adequate return. Breakdown of CPF CPF is mechanically removed from your wages along with your employer’s contribution . To help understand this theory, below is a table with the age and percentage of contribution from you and your employer: Age Limit Employee contribution Employer’s contribution Till 50 years old 20% of the income per month 17% of the income per month 51 to 55 years