As one approaches retirement age, it is crucial to understand the different types of pensions available in Singapore. A pension is a form of retirement savings that provides a regular income to individuals after they stop working. In Singapore, there are several types of pensions available, each with its unique features and benefits. Understanding these options can help individuals make informed decisions about their retirement plans.

The first type of pension available in Singapore is the Central Provident Fund (CPF). This is a mandatory savings scheme for all Singapore citizens and permanent residents. A portion of an individual’s monthly income is contributed to their CPF account, which can be used for retirement, housing, healthcare, and education needs. The CPF provides a stable and reliable source of income in retirement, making it the most popular pension scheme in Singapore.

Another type of pension available is the Supplementary Retirement Scheme (SRS). This is a voluntary scheme that allows individuals to save more for retirement on top of their CPF savings. Contributions to the SRS are tax-deductible, and the funds can be withdrawn tax-free after the age of 62. The SRS is popular among individuals who are looking for tax relief and have reached the maximum CPF contribution limit.

Other pension schemes available in Singapore include the private pension plans offered by insurance companies and the Retirement Sum Scheme (RSS), which provides a monthly payout to CPF