{"id":474854,"date":"2026-02-12T10:15:08","date_gmt":"2026-02-12T10:15:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/474854\/"},"modified":"2026-02-12T10:15:08","modified_gmt":"2026-02-12T10:15:08","slug":"budget-2026-cpf-board-to-introduce-new-investment-scheme-in-2028","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/474854\/","title":{"rendered":"Budget 2026: CPF Board to introduce new investment scheme in 2028"},"content":{"rendered":"

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Follow our live coverage of Budget 2026 here.<\/p>\n

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SINGAPORE \u2013 The Central Provident Fund Board (CPF Board) will introduce a new investment scheme to offer simplified, low-cost \u201clife cycle\u201d investment products to help CPF members grow their savings for retirement. <\/p>\n

Prime Minister Lawrence Wong announced this move in the Budget speech on Feb 12. <\/p>\n

He said: \u201cWe will offer more investment options for CPF members who wish to grow their savings further.\u201d<\/p>\n

CPF Board already has a CPF Investment Scheme, which provides the option for members to invest CPF savings in a wide range of instruments. <\/p>\n

This new scheme will complement the existing system, by offering simplified, low-cost and diversified life-cycle investment products with commercial product providers. <\/p>\n

It will cater to long-term investors who want to take some risk for potentially higher returns, but who may have less expertise in navigating the current offerings or prefer not to actively manage their investments, the CPF Board and Manpower Ministry (MOM) said in a joint statement on Feb 12. <\/p>\n

The new scheme is expected to be launched in the first half of 2028. <\/p>\n

PM Wong noted in the Budget speech that the CPF system provides stable, risk-free interest rates to help Singaporeans build their retirement nest egg. <\/p>\n

CPF members can earn up to 6 per cent per annum, risk-free, on their CPF balances. <\/p>\n

\u201cSome CPF members, especially those with a longer runway to retirement, are prepared to take more risk to generate potentially higher returns,\u201d he said. <\/p>\n

\u201cBut experience shows that most people do not do well picking and trading individual stocks. It is very hard to beat the market consistently.\u201d<\/p>\n

He added that for retail investors, a more sensible approach is broad and diversified exposure through low-cost funds. <\/p>\n

\u201cEven then, risks remain,\u201d he said. \u201cSome may invest when markets are high and retire during a downturn \u2013 precisely when they need their savings.\u201d<\/p>\n

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PM Wong noted that the CPF Advisory Panel had earlier recommended introducing a Lifetime Retirement Investment Scheme, which is a life-cycle approach with a predefined glide path to retirement. <\/p>\n

\u201cIn other words, members take on more risk, with greater exposure to equities, when they are younger, and their investments are automatically rebalanced towards safer assets as they approach retirement,\u201d he said. <\/p>\n

He added that the Government has studied the recommendation, and noted that such life-cycle investment products are available in the market but have traditionally come with high fees. <\/p>\n

\u201cRather than leave this entirely to the market, the Government will help shape and develop such products under a new scheme for CPF members,\u201d he said. <\/p>\n

He added that a key requirement will be that fees are kept low. Two to three credible providers will also be selected to keep choices simple for CPF members. <\/p>\n<\/p>\n

Participation in the new scheme will be voluntary, so CPF members can choose whether to opt in. <\/p>\n

\u201cAt the same time, we will strengthen efforts to help members understand whether this option is suitable for them,\u201d PM Wong said. <\/p>\n

He added that this scheme in particular can help younger members, who have a longer runway to retirement and can better ride out short-term market fluctuations.<\/p>\n

The Government will also be prepared, in principle, to provide some time-limited support to kickstart the scheme, he said.<\/p>\n

The CPF Board and MOM said that life-cycle products are designed to automatically adjust an investor\u2019s portfolio asset allocation along a glide path \u2013 a formula-based schedule that steadily reduces exposure to riskier assets over time \u2013 as the investor\u2019s age approaches a target date, such as retirement. <\/p>\n

For instance, if the target date is the age of 65, the investor\u2019s portfolio could be liquidated in phases a few years before that age. <\/p>\n

\u201cThis 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,\u201d the CPF Board and MOM said. <\/p>\n

Upon phased liquidation, the investment proceeds will be transferred to the investor\u2019s Retirement Account, up to the full retirement sum. <\/p>\n

Any remaining proceeds will then be transferred to the Ordinary Account. <\/p>\n

The funds in the Retirement Account can be used to join CPF Life when the member decides to start monthly payouts anytime from age 65. <\/p>\n

The CPF Board and MOM said that market developments have made it timely to introduce life-cycle investment products to CPF members. <\/p>\n

\u201cTechnological advancements and the advent of digital investment platforms may enable commercial providers to offer these products at more affordable costs,\u201d they said. <\/p>\n

They added that these products also show potential to achieve returns over a long-term horizon and that there has been an increasing adoption of such products globally in recent years. <\/p>\n

For instance, life-cycle investment products are used in the government pension schemes of countries such as America and Britain. <\/p>\n

But the CPF Board and MOM also cautioned that all investment products carry investment risk and that returns are subject to market conditions. <\/p>\n

Those who prefer a risk-free approach can continue to keep their savings in CPF accounts to earn interest rates.<\/p>\n

The CPF Board will engage the industry from March and invite potential providers to express their interest.<\/p>\n

Selected providers are expected to be announced in the first half of 2027. <\/p>\n","protected":false},"excerpt":{"rendered":"Follow our live coverage of Budget 2026 here. SINGAPORE \u2013 The Central Provident Fund Board (CPF Board) will…\n","protected":false},"author":2,"featured_media":474855,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":{"0":"post-474854","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/474854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=474854"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/474854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/474855"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=474854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=474854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=474854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}