The CPF (Central Provident Fund) is Singapore 's social security
system. Established in 1955, it is mandatory for all Singapore citizens
and permanent resents. The CPF is essentially a savings system where the worker
contributes a certain percentage of their salary (20 % until the age of 55,
12.5% from 55-65, and then 7.5% thereafter), and the employer also making a
contribution (10% until you're 55, 4% from 55-60, then 2% until you retire).
You can withdraw certain amounts from this fund for certain reasons only (e.g.
medical emergencies, buying a home & investing in stock), but its main purpose
is to ensure that everyone has an adequate sum on which to retire.
Foreign nationals are not required to contribute to the CPF, although professionals
who enter on a work permit and then become Permanent Residents will be expected
to make contributions at the same rate as Singapore citizens. For
the first two years of permanent residency your contributions are subsidised.