The Central Provident Fund (CPF) is a mandatory social security savings plan implemented by the government with the idea of providing Singaporeans with a sense of security in their old age. Citizens are able to retire with sufficient savings to meet their medical needs in their old age. About 20% is taken from each Singaporean's salary and put into this CPF account. They can only withdraw this amount upon reaching their "retirement age" at 62.
CPF savings earn a minimum risk-free interest of 2.5% guaranteed by the Government. It is interesting to note also the inflation rate in Singapore was recorded at 3.6% in November of 2012.