Changes to CPF to give members more options
Find out what changes are in store for the CPF and how members now have more options to grow their savings.
06 Mar 2017
During the Committee of Supply debates on Monday, 6th March, Manpower Minister Lim Swee Say announced several changes to the Central Provident Fund (CPF). These changes will allow members to better understand the CPF Investment Scheme and give them more options when planning for their retirement.
CPF INVESTMENT SCHEME (CPFIS)
Self-assessment tool: To help CPF members determine if CPFIS is suitable for them, a self-assessment tool will be introduced.
Lowering cap on sales charge: The cap on the sales charge for CPFIS will be lowered to discourage financial intermediaries from proactively selling products to members.
Asset class review: CPF will review the types of asset classes being offered under CPFIS to determine if they are appropriate for growing retirement savings.
CPF Lifetime Retirement Investment Scheme (LRIS): CPF will introduce the LRIS, a new option for CPF members to grow their retirement savings. LRIS will have low fees, simple investment choices, investments that are passively managed, and mechanisms to encourage long term investing.
A new option for CPF LIFE will be introduced – the Escalating Plan. The Escalating Plan will give members the option of a lower initial payout, which will then escalate at 2% a year. Members on the Standard and Basic plans will have one year to switch to the Escalating Plan if they wish to.
CPF RETIREMENT PLANNING SERVICE
This service, which helps members reaching 55 understand the CPF scheme and the options available to them, will be expanded to all CPF members turning 54 this year.