Investing Updates: Is CPF’s new life-cycle investment scheme for everyone?

Source:

https://www.businesstimes.com.sg/opinion-features/cpfs-new-life-cycle-investment-scheme-everyone

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Singapore will roll out life-cycle investment portfolios for CPF members in 2028, marking a major step by the CPF Board to offer “advice-embedded”, simplified investing options. Announced in Budget 2026, the scheme aims to help members who want higher long-term returns but lack the time, expertise or discipline to manage and rebalance investments themselves.

While CPF members already have over 700 choices under the CPF Investment Scheme (CPFIS), choice overload, costs and behavioural biases have limited participation. Only about 28% of OA members and 22% of SA members invest actively. The new life-cycle scheme seeks to address this by offering low-cost, diversified portfolios that automatically follow a glide-path: higher risk exposure for younger members, gradually shifting to bonds and lower-risk assets as retirement approaches.

However, the scheme is not for everyone. Its success depends critically on members’ ability to stay invested over the long term, even during market downturns. Without discipline, members may panic and exit at the wrong time, undermining returns. Hence, strong advisory support and “hand-holding” during crises will be essential.

The case for investing is clearer for OA savings (2.5% risk-free rate) than for SA savings (4% risk-free), which many experts consider hard to beat. Digital advisers like Endowus and AutoWealth already provide CPF-approved, low-cost portfolios, showing the model is feasible.

Experts caution that the scheme should not replace the CPF’s role as a safe foundation for retirement. As MoneyOwlnotes, it is best suited for members with sufficient balances, higher risk tolerance and long horizons. Used appropriately, life-cycle investing can help combat inflation and longevity risk—but only with patience, realism and guidance.

Comments:

Fees must be lower than Endowus, POEM, AutoWealth, etc for people to shift over.

Let's wait and see.

Investing Updates: Government close to finalising low-cost retirement investment scheme details: Tan See Leng

Source:

https://www.straitstimes.com/singapore/politics/government-close-to-finalising-low-cost-retirement-investment-scheme-details-tan-see-leng

ChatGPT:

The Singapore Government is close to finalising details of the CPF Lifetime Retirement Investment Scheme (LRIS), a low-cost and simple retirement investment option first announced in 2016. Manpower Minister Tan See Leng told Parliament on Jan 14, 2026, that the Ministry of Manpower is in the “final stages” of studying the scheme, with updates to be provided once it is ready.

The LRIS is intended as an alternative to the existing CPF Investment Scheme (CPFIS), targeted at CPF members who wish to invest for retirement but lack the expertise, time, or confidence to actively manage their investments. It aims to balance risk and return while safeguarding retirement adequacy. Dr Tan was responding to queries from MPs who raised concerns that the prolonged delay may deprive members of opportunities to earn higher expected returns through market exposure.

Dr Tan stressed that the Government’s priority remains protecting retirement adequacy, noting that market timing and individual investment horizons matter. Investors who are forced to liquidate investments during downturns near retirement may suffer losses if they lack sufficient time to ride out market volatility. Hence, any LRIS product must be carefully designed.

The scheme is expected to adopt a “glide path” investment strategy, where younger members hold a higher proportion of equities for growth, gradually shifting towards bonds as they approach retirement to reduce risk. The product will likely include diversified global equities and bonds rather than being fully focused on Singapore equities.

Dr Tan also noted that CPF members who want higher returns already have access to low-cost CPFIS funds, which have delivered strong recent performance. Members may alternatively keep savings in CPF accounts to earn risk-free interest. While Dr Tan declined to commit to a specific 2026 launch timeline, he confirmed that the CPF Board is reviewing past recommendations, taking into account how markets have evolved since 2016.

Comments:

Interesting development.

Wonder how it can fit to many DIY investors' portfolio like me.

Rewards Updates : DBS First to Accept CPF LIFE Payouts for Credit Card Applications

Source : 

https://www.moomoo.com/news/post/54080317/dbs-first-to-accept-cpf-life-payouts-for-credit-card?level=1&data_ticket=1749470706210211

Apple Intelligence : 

• Financial Inclusion Initiative: DBS becomes the first bank in Singapore to accept CPF LIFE payouts as income for credit card applications.

• Target Audience: The initiative aims to expand access to financial products for retirees and seniors receiving CPF LIFE payouts.

• Application Process: CPF LIFE recipients can apply for entry-level DBS and POSB credit cards using their CPF LIFE Annual Statement, with a simplified application process.