The new investment scheme will offer simplified, low-cost and diversified life-cycle investment products, which automatically rebalance investors’ portfolios towards less risky assets as they approach target date. This caters to members who want to stay invested for the long term, but may have less financial expertise or prefer not to actively manage their investments.
It also serves as a complementary option to the risk-free interest rates enjoyed by members today and the CPF Investment Scheme (CPFIS), by providing an additional choice for members who are willing to take some risk for higher potential returns on their CPF savings. The new scheme will provide a lower-cost option since all-in fees will be capped. With a limited number of products, it will also simplify investment decisions for members who may otherwise find it complex to navigate the range of CPFIS offerings.
The new scheme is expected to be launched in the first half of 2028.
