Lee Hsien Loong: Singapore's CPF System One of the World's Best Retirement Schemes
Published atJul 05, 2025 05:26 pm
Singapore Senior Minister Lee Hsien Loong said that Singapore's Central Provident Fund (CPF) system is recognized globally as one of the best retirement schemes. However, there is no perfect pension system in the world, so Singapore's CPF system must be continually adjusted and updated to ensure it meets the needs of the new generation of Singaporeans.
This year marks the 70th anniversary of the establishment of the Central Provident Fund Board in Singapore. To celebrate this milestone, the authorities have published a commemorative book documenting the evolution of Singapore's CPF system over the past 70 years.2025 CPF contribution rate table. These rates also vary according to five categories. (Table: HSBC)At the celebration event on the 5th, Lee Hsien Loong officiated the launch of the new book. He said that through this system, Singapore enables people to save more during employment, plan their retirement finances prudently and with restraint, and encourages people to extend their employment years and remain in the workforce. Singapore has been able to achieve these goals because its CPF system is different from many other countries. Firstly, Singapore's CPF consists of people's own savings—each generation saves for its own retirement needs. In countries that adopt tax-based pension systems, the next generation of taxpayers actually shoulders the burden.
Lee Hsien Loong stated that although the current CPF system is generally good, as societal needs and working patterns change and people live longer, Singapore still needs to constantly adjust the system to ensure it meets the needs of the new generation of Singaporeans.
● CPF tells the Singapore Story
He noted with satisfaction that the public has a high degree of trust in the CPF system, with many members voluntarily topping up their CPF accounts with cash for themselves and their families. Last year, CPF members made 875,000 top-ups, totaling nearly 5 billion Singapore dollars. About 30% of Singaporeans aged 65 and above chose not to withdraw their savings, opting to confidently leave their retirement funds in their CPF accounts.
Lee Hsien Loong said: “The CPF is one of the government's policies, which—together with other policies such as housing, healthcare, education, and security—tells the story of Singapore, a story that emphasizes self-reliance, creativity, and constant adaptation.”
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