As with all investment products, the new investment scheme will carry investment risk, with returns subject to market conditions. However, the scheme will have certain features that help to mitigate against downside risks, such as automatic age-based rebalancing of investors' portfolio mix, with phased liquidation towards the target date.
For members who prefer a risk-free approach, they can continue to keep their savings in their CPF accounts to earn the risk-free CPF interest rates. Members can consider cash top-ups to their CPF accounts, or transfer Ordinary Account savings to their Special Account, which will go towards boosting their CPF LIFE monthly payouts in retirement.
CPF Board will also enhance investor education to help members determine whether the new scheme is suitable for them. Members are encouraged to carefully consider their investment objectives, risk tolerance, and investment horizon before making any investment decisions.
