Pensions are an important aspect of retirement planning, especially for the elderly. In Singapore, there are different types of pensions available to support seniors in their golden years. It’s essential to understand the various options and how they work to ensure the elderly can have a comfortable and financially stable retirement.
The first type of pension available in Singapore is the Central Provident Fund (CPF). It is a mandatory saving scheme for citizens and permanent residents, where a portion of their wages is contributed to their CPF account. This fund can then be withdrawn upon retirement to provide a steady income. Additionally, the government also offers a Basic Retirement Sum scheme to seniors to help meet their basic retirement needs.
Another type of pension is the National Pension Scheme (NPS), which is a voluntary savings scheme for Singapore citizens and permanent residents. It allows individuals to contribute a certain amount of their income to their NPS account and receive a monthly payout upon retirement. This scheme is more flexible, allowing contributors to choose their preferred investment options.
For the elderly who have limited savings or no income, the government offers a comprehensive social security system known as Silver Support Scheme. It provides a monthly payout to seniors who have lower or no CPF savings and limited family support. This scheme ensures that no elderly will be left behind and helps to alleviate financial stress during retirement.
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October 22, 2024
