CPF Board to introduce new investment scheme in 2028 offering simplified, low-cost, and diversified commercial investment products

1 The CPF Board will introduce a new investment scheme in 2028 as a response to the CPF Advisory Panel’s recommendation for the Lifetime Retirement Investment Scheme. Today, the CPF system provides stable, risk-free interest rates to help Singaporeans grow their savings for retirement. For members with investible savings, the CPF Investment Scheme (CPFIS) provides the option to invest their CPF savings in a wide range of instruments. The new scheme will complement the existing system, by catering to long-term investors who are willing to take some risk for potentially higher returns, but who may have less expertise in navigating the CPFIS offerings or prefer not to actively manage their investments.  

2 The CPF Board will work with commercial product providers to offer simplified, low-cost, and diversified life-cycle investment products under the new scheme. These products will automatically rebalance investors’ portfolios towards lower risk assets as they approach target date. This will cater to members who want to stay invested for the long term and ride out market cycles, without having to actively manage their portfolios. Participation in the new scheme will be voluntary.

3 Market developments have made it timely to introduce life-cycle investment products to CPF members. Such products are designed to automatically adjust an investor’s portfolio asset allocation along a glidepath as the investor’s age approaches a target date, typically retirement. Technological advancements and the advent of digital investment platforms may enable commercial providers to offer these products at more affordable costs. Based on market studies, life-cycle investment products show potential to achieve good returns over a long-term horizon, with increasing adoption of such products internationally in recent years (refer to Annex A for more information).

Key features of the new scheme 

4 The new scheme will have several key features:

• Automatic age-based rebalancing of investment portfolio mix, with phased liquidation
  • Investors’ portfolio mix will automatically rebalance along a glidepath from higher-risk assets, such as equities, to lower-risk assets, such as bonds, as they age, before being liquidated in phases by the target date. For example, if the target date is the Payout Eligibility Age (PEA) of 65, the investor’s portfolio could be liquidated in phases a few years before PEA.
  • This calibrates the amount of investment risk to which investors are exposed to at different stages of life and mitigates the risk of a market downturn during exit.
  • Upon phased liquidation, the investment sale proceeds will be transferred to the investor’s Retirement Account (RA), up to the Full Retirement Sum (FRS). Any remaining proceeds will be transferred to the Ordinary Account (OA). The funds in the RA can then be used to join CPF LIFE when the member decides to start his monthly payouts anytime from age 65, and help boost his monthly payouts. 
• Simplified choice
  • To simplify decision-making for investors, we are looking to select two to three reputable product providers to offer a small number of options.
• Low fees
  • All-in fees will be capped to minimise costs and allow investors to retain and benefit from more of their investment returns

5 All investment products carry investment risk, and returns are subject to market conditions. The CPF Board will engage the industry on the product specifications, and the selected product providers will provide more details on their specific products when launched, including illustrative projected returns commensurate with the risk profile of their products.

6 While products under the new scheme will be provided and managed by commercial product providers, the Government is prepared to provide some time-limited support to kick-start the new scheme. The Government will also help interested members better understand the new scheme to assess if it is a suitable option for them. Further details will be announced later.

Industry engagement

7 The CPF Board will engage the industry from March 2026 on the product specifications and invite expressions of interest to offer such products. Similar to the fund selection for CPFIS, the CPF Board will work with independent investment consultants to evaluate product providers’ applications for the new scheme. Selected providers are expected to be announced in the first half of 2027, followed by the launch of the new scheme in the first half of 2028.

Considerations for investors

8 The Government recognises that members have diverse financial goals and risk preferences. Members who prefer a risk-free approach can continue to keep their savings in their CPF accounts to earn the risk-free CPF interest rates. They can also consider cash top-ups to their CPF accounts, or transfer OA savings to their Special Account which will go towards boosting their CPF LIFE monthly payouts in retirement. For members who are willing to take some investment risk, the new scheme will provide an additional option alongside existing choices under CPFIS. Existing CPFIS eligibility criteria will apply to members who are keen to invest their CPF savings under the new scheme. Members are encouraged to understand the options available as well as consider their risk appetite and investment horizon before deciding to invest their CPF savings.

9 For more information, please refer to the Annexes or visit cpf.gov.sg/newinvestmentscheme.