Singapore's Social Security Savings Plan Changes At A Glance: CPF Ceiling And Contribution Rates

Singapore's government raised CPF ceiling and contribution rates for older workers with effect from 1 Jan 2016 to keep pace with the economic growth in the country.

With the rapid growth in the economy, the Singapore government is facing a number of challenges from the ageing population and higher expectations of retirement needs from citizens. Similar to other Asian countries, many retirees rely on their children to support them in their old age in Singapore. But with the high life expectancy and low birth rate, future Singapore retirees will have to depend more on Central Provident Fund (CPF) savings for their retirement needs. Earlier this year, the Singapore government accepted the recommendations by the CPF advisory panel to improve the CPF system in preparation for the upcoming challenges by raising the CPF salary ceiling and the contribution rates for older workers in 2016.