Exploring the Pensions for the Elderly in Singapore

Singapore has a rapidly ageing population, with the number of residents aged 65 and above expected to double in the next two decades. As people approach retirement age, it is important for them to have a stable source of income. This is where pensions play a crucial role. Pensions are essentially financial plans that provide a regular income to individuals after they retire. In Singapore, there are several types of pensions available for the elderly, each with its own set of benefits and conditions.

The three main types of pensions in Singapore are the Central Provident Fund (CPF), the Supplementary Retirement Scheme (SRS), and the Retirement Sum Scheme (RSS). The CPF is a mandatory social security savings scheme for Singapore citizens and permanent residents. Part of the employee’s salary is automatically deducted and contributed to the CPF, which can then be used for retirement, housing, medical, and other purposes.

The SRS is a voluntary retirement savings scheme that anyone above 18 years old and earning income in Singapore can participate in. It allows individuals to save more for retirement and enjoy tax benefits. On the other hand, the RSS is a scheme specifically designed for CPF members who wish to receive a monthly payout from their CPF savings after they turn 65. This scheme provides a stable source of income during retirement and ensures that the CPF savings are not depleted too quickly.

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