Why Is Temasek Focused On Building A Resilient Portfolio For The Long Term?

In Singapore, we can’t ignore our CPF account balances. Each month, we make mandatory CPF contributions of up to 37% of our salary. Over three to four decades in the workforce, our CPF balances can compound to a substantial amount – and provide lifelong income in our senior years via CPF LIFE payouts.

When we are younger, more funds are channelled into our Ordinary Account (OA). As we gradually age, a larger proportion is funnelled into our Special Account (SA) and MediSave Account (MA) for our retirement and healthcare needs instead.

When we hit 55, a new Retirement Account (RA) is opened for us to set aside our retirement funds for our golden years. From 2025, this move will be accompanied with the closure of our Special Account – which means we continue contributing to our retirement nest egg as long as we are working.

​Understanding how the CPF system works, and the interest rates it pays, allows us to maximise the scheme and make better financial decisions.