Budget 2026 introduces a new voluntary CPF life-cycle investment scheme, set to launch in 2028. This scheme, announced by Prime Minister Lawrence Wong, aims to simplify and diversify investment options for CPF members. The existing CPF Investment Scheme (CPFIS) offers a wide range of investment instruments, but the new scheme targets long-term investors who prefer lower risk and less active management. It's designed for those willing to take calculated risks over the long haul, mirroring the Lifetime Retirement Investment Scheme recommended by the CPF Advisory Panel in 2016. The government's goal is to provide CPF members with a more balanced approach to retirement planning, addressing the challenges of individual stock picking and market volatility. The scheme will be voluntary, with CPF Board collaboration with commercial product providers to offer curated, low-cost investment options. This approach ensures investors can make informed decisions, with assets rebalancing towards safer investments as retirement approaches. The scheme's all-in fees will be capped, and the CPF Board will engage the industry to ensure product specifications meet investor needs. The government's support extends to retirement planning, with top-ups for those aged 50 and above with CPF savings below the basic retirement sum. Additionally, CPF contribution rates for workers aged 55 to 65 will increase in 2027, aligning with the government's commitment to strengthening retirement support for Singaporeans.
