The Central Provident Fund (CPF) is a mainstay in the lives of every Singaporean – in return for forced savings, the government guarantees risk-free interest on CPF monies, which can be used for education, housing, preparation for retirement and to pay for medical costs.
Going a step further with the introduction of the Baby Bonus Scheme, every Singaporean child now has a CPF account even before they learn to speak. This is thanks to the government’s initial deposit of $4,000 into their Medisave account.
Even so, one would wonder if its really possible to accumulate a million dollars by the time Singaporeans retire at the age of 65. DollarsAndSense Managing Editor Timothy Ho sits down with Loo, an avid advocate of CPF, to find out how exactly can it be done.
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