The Economy of Singapore
Forced Savings: The CPF
The Central Provident Fund requires workers and employers to contribute part of pay into individual accounts for housing, health and retirement.
Singapore prefers self-reliance to welfare.
How it works
Employees and employers pay a share of wages into three accounts for ordinary spending, medical costs and retirement.
Uses
Money can be used for housing, insurance and education, and later provides retirement income.
Philosophy
The system stresses individual responsibility and high saving.
Criticism
Some argue it does not provide enough for the poorest and that the state holds large pooled savings.
A young couple uses CPF savings for their flat's down payment and monthly mortgage.
It provides targeted help alongside compulsory saving.
- CPF is compulsory saving.
- It funds housing, health and retirement.
- It stresses self-reliance.
- Critics raise adequacy concerns.
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