What does CPF mean in ACCOUNTING
The Central Provident Fund (CPF) system is Singapore's major social security provider. It enables Singaporeans to set aside funds out of their wages for their retirement, health care and home ownership needs. For the younger generation, CPF helps them to build up a nest egg while they are young and productive so that they can enjoy financial security in their old age. For the older generations, CPF provides financial support during their retirement years and eases the burden of medical bills for healthcare costs not covered by MediShield Life or other forms of insurance.
CPF meaning in Accounting in Business
CPF mostly used in an acronym Accounting in Category Business that means Central Provident Fund
Shorthand: CPF,
Full Form: Central Provident Fund
For more information of "Central Provident Fund", see the section below.
» Business » Accounting
How it works
CPF comprises three main accounts — Ordinary Account (OA), Special Account (SA) and MediSave Account (MA). The OA allows members to save money for current investments such as buying a property, paying for their children's education fees or accumulate funds for future investments. The SA is mainly used to help members earn higher interest on funds reserved for future use such as purchasing a house or saving for retirement. Lastly, MA is highly accessible fund which provides members with financial coverage when it comes to medical expenses. This includes hospitalisation costs, as well as outpatient treatments covered by MediShield Life and other Integrated Shield Plans.
The CPF Board also offers additional savings schemes — Retirement Sum Scheme, Additional Retirement Scheme and Home Protection Scheme — to further benefit its members' savings goals.
In 2015, there were more than 3 million active CPF accounts in Singapore with approximately S$144 billion in total deposits held by both employed and self-employed individuals.
Benefits
Using CPF has numerous advantages regardless of age or income bracket. Firstly, money saved in an individual's CPF account will earn interest at favourable rates compared to those offered by banks or other investment opportunities available on the open market. As part of its incentive scheme, the government has rolled out annual top-ups known as ‘Bonus Interest' which serve as added rewards for users making regular contributions into their respective accounts on time each year throughout their working lives. Additionally, all monies placed into member's CPF accounts are protected under the law from creditors during bankruptcy proceedings — this serves as an extra layer of comfort which encourages users to save more within their respective accounts without having to worry about losing out upon job loss or any other unforeseen financial hardship that may arise over time due to economic instability etc.. Finally all withdrawals made from a user's account are tax free meaning members get exactly what they put in with no hidden charges down the line.
Essential Questions and Answers on Central Provident Fund in "BUSINESS»ACCOUNTING"
What is the Central Provident Fund (CPF)?
The Central Provident Fund (CPF) is a social security savings system that provides Singaporeans with a secure retirement, healthcare and housing savings.
When do I join the CPF?
You will be automatically enrolled in the CPF when you turn 21, or start working in Singapore at any age.
Final Words:
An integral part of modern life in Singapore today is managing one's finances responsibly - especially when it comes to long-term savings plans like retirement funds or home ownership schemes etc.. This is where having access to a Central Provident Fund (CPF) account holds real merit; it helps individuals plan wisely for future financial security while at the same time offering peace of mind knowing your hard earned dollars are safe guarded against any external threats like bankruptcy proceedings while still earning interest at favourable rates annually plus government bonuses thrown into the mix too! With that said, if you want peace of mind when planning your finances then definitely look into opening up your own Central Provident Fund (CPF) account today!
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