grow your Central Provident Fund (CPF) savings<\/p>\n
<\/a> over time.<\/p>\n
Today, digital tools have made the process less daunting, offering clarity and convenience at every stage of retirement planning. These tools can be accessed through the newly launched <\/p>\n PLAN (Plan Life Ahead, Now!) with CPF<\/p>\n <\/a>.<\/p>\n Launched in July this year, PLAN with CPF is a one-stop financial guidance platform designed to help members take charge of their financial health at every stage of life, from when they start working and financing a home to preparing for retirement.<\/p>\n Like Ms Tan, father-of-two Calvin Chew channels much of his income into day-to-day expenses and his teenagers\u2019 education, while his CPF savings go towards the family\u2019s mortgage and insurance.<\/p>\n \u201cThat leaves me with very little liquid cash,\u201d the 53-year-old admits. \u201cI\u2019ve realised that I will have to depend largely on my CPF savings for my retirement years. <\/p>\n For 53-year-old Calvin Chew (far right), most of his income goes towards daily expenses and his children\u2019s education, so he is looking to build up his CPF for his retirement years.<\/p>\n PHOTO: COURTESY OF CALVIN CHEW<\/p>\n For him and many others in the sandwiched generation, CPF is a key source of retirement funds.<\/p>\n Yet it is sometimes easy to overlook how those savings are used today \u2013 whether for housing, healthcare or insurance premiums \u2013 will ultimately decide whether there is enough to fall back on in later years.<\/p>\n For instance, using savings from the Ordinary Account (OA) to buy a home helps members secure a key life asset, while tapping MediSave savings to pay for an Integrated Shield Plan offers peace of mind for medical needs. <\/p>\n Still, it is worth keeping in mind that the more CPF funds are used for these purposes, the less remains to grow for retirement. Striking this balance ensures that CPF continues to work for both present and future needs.<\/p>\n Being mindful of these opportunities to grow retirement savings can inform everyday decisions, such as putting aside more for long-term needs.<\/p>\n Through PLAN with CPF, members can use the <\/p>\n Retirement Payout Planner<\/p>\n <\/a> to project their payouts from age 65, simulate <\/p>\n top-ups or transfers<\/p>\n <\/a> to see how these can grow, and review their saved plan regularly to adjust it along the way.<\/p>\n For Ms Tan\u2019s parents, CPF has been a vital safety net. Both are over 65 and draw monthly payouts. Ms Tan\u2019s mother, who is chronically ill, is also able to tap on MediSave savings for inpatient and outpatient medical bills.<\/p>\n \u201cI want to be as prepared as them,\u201d she says. \u201cI have also started to rope my husband in to discuss our long-term finances and have decided to do an end-of-year review, so that we can meet our retirement goals together.\u201d<\/p>\n Building a nest egg depends not just on saving regularly, but on how those savings grow over time. Unlike investments that fluctuate with the markets, CPF savings earn risk-free interest, making it a reliable foundation for retirement planning.<\/p>\n Money in the OA earns 2.5 per cent per year, while funds in the Special Account (SA) and MediSave Account earn 4 per cent per year.<\/p>\n To help boost retirement savings, the Government also pays an extra one percentage point interest on the first $60,000 of combined CPF balances, capped at $20,000 for money in the OA, for those aged 55 and below. <\/p>\n This means members can earn up to 5 per cent on the first $60,000 of combined balances before 55. <\/p>\n CPF interest is compounded, which helps CPF savings grow faster. <\/p>\n Case in point: A member who saves $200,000 by age 55 could receive about $1,600 monthly from 65 for life under CPF LIFE. If not for the power of compound interest, he would have to start with $300,000 in his Retirement Account at age 65, a $100,000 difference, to receive nearly the same payouts.<\/p>\n For Mr Chew, the difference was eye-opening.<\/p>\n \u201cWhat mattered to me in the past was that my CPF savings increased yearly, and that it was sufficient to cover my home loan and insurance premium payments,\u201d he says. <\/p>\n \u201cWhen I saw how much the payouts changed with top-ups, it hit me \u2013 I\u2019m not saving enough for retirement. That made me think harder about what I should be doing now.<\/p>\n \u201cIf I could turn back the clock, I would tell my 30-year-old self to do some homework and start planning earlier. Small amounts can grow big over time. But it\u2019s also not too late \u2013 my next step is to review whether to make an SA top-up, assess how much I am spending on insurance, or even re-examine my home loan repayments.\u201d<\/p>\n Planning for retirement does not stop at CPF. Taking steps to improve overall financial health, including income, expenses, savings and investments, is critical to ensure immediate and long-term financial goals are met.<\/p>\n The \u201cFinancial fitness beyond CPF\u201d questionnaire in the PLAN with CPF platform, developed with the national financial education programme, MoneySense, gives members like Ms Tan and Mr Chew a quick overview of their financial health.<\/p>\n In just a few questions, it offers tips on budgeting, saving and investing.<\/p>\n Members can identify what gaps need to be filled, and how to work towards their financial goals and retirement targets.<\/p>\n Retirement may appear distant, but the years pass quickly. Planning does not have to be overwhelming. Making small choices can build a future with fewer financial worries for the whole family.<\/p>\n Log in to <\/p>\n PLAN with CPF dashboard<\/p>\n![\"53-year-old](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/a2c808504b43fca95bbe7b89ddc3b1f86c67d78830c76017a46657c4801ea07c.webp\")
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![\"cpf](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/a653eb647a9a19e679bebf2a7e8202267d3930bc502e20340603d2a50438a921.webp\")
<\/p>\n","protected":false},"excerpt":{"rendered":"Each month, Ms Tan Hui Jie\u2019s pay cheque is split three ways. She sets aside an allowance for…\n","protected":false},"author":2,"featured_media":91102,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":{"0":"post-91101","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz","13":"tag-personal-finance","14":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/91101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=91101"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/91101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/91102"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=91101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=91101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=91101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}