CPF Lifetime Retirement Investment Scheme proposed in 2016 not ready yet

Minister for Manpower Tan See Leng said the government will provide updates when they are ready.

Fiona Tan | November 24, 2023, 01:40 PM



The Lifetime Retirement Investment Scheme (LRIS), first proposed in 2016 by a government-appointed panel as another investment option for Central Provident Fund (CPF) members, is not yet ready.

According to Manpower Minister Tan See Leng, there are headwinds in the global investment environment.

"Against the backdrop of inflationary pressures, tighter monetary and fiscal policies in the global economy have slowed economic growth and increased financial market stresses," he explained in a written reply.

The government, therefore needs to study and update their planning assumptions carefully, given the current context.

There is a need to strike the right balance between risk and return in the LRIS' design so as to safeguard the retirement adequacy of CPF members, he added.

No news about LRIS

Tan was explaining the delay for the LRIS in a written parliamentary reply to Leong Mun Wai, one of the Progress Singapore Party's Non-Constituency Members of Parliament.

Leong had asked why the LRIS has not yet been rolled out, and what is its expected timeline.

The government-appointed panel that proposed the LRIS, also recommended that the government establish an expert investment council to set up and run the scheme, which could take a few years, ST reported.

However, there has been no news regarding the LRIS since its proposal in 2016.

The Business Times wrote in June 2023,

"For a while, it seemed that the vaunted LRIS [...] could be the answer for those who wish to invest their CPF savings for a higher rate of return than the default interest rates [...] but on this front, there has mostly been silence, about seven years since the LRIS was announced."

What is the LRIS exactly?

The LRIS was proposed as an alternative to the CPF Investment Scheme (CPFIS), ST reported.

It will allow members who lack the time or know-how to invest and grow their retirement savings.

Unlike the CPFIS, investing through the LRIS is simpler to understand, as it will only offer a few well-diversified products, and comes with a lower risk.

Additionally, the LRIS' investments are low-cost and do not require active management.

CPF members need only have over S$20,000 in their Ordinary Account (OA) and/ or more than S$40,000 in their Special Account (SA) to be eligible for the LRIS.

Top photo via Ministry of Manpower/Facebook

Top image from Ministry of Manpower/Facebook