Lester Freeman
The Central Provident Fund (CPF) is a key pillar of Singapore's social security system, providing working Singaporeans with a sense of financial security for their retirement needs. Beyond its core function of safeguarding savings for healthcare, housing, and retirement, the CPF also offers avenues for investment. The CPF Investment Scheme (CPFIS) allows individuals to invest their Ordinary Account (OA) and Special Account (SA) savings to boost their retirement funds. This scheme provides a diverse range of investment options, including investment-linked insurance products, Singapore Government Bonds, and Exchange Traded Funds. However, it's important to remember that all investments carry risks, and individuals should carefully consider their financial goals, risk tolerance, and overall financial situation before investing their CPF savings.
| Characteristics | Values |
|---|---|
| Name of Investment Scheme | CPF Investment Scheme (CPFIS) |
| Who can invest | Anyone over 18 who is not an undischarged bankrupt and meets the financial criteria |
| Financial criteria | More than $20,000 in your Ordinary Account (OA) and/or more than $40,000 in your Special Account (SA) |
| Other criteria | Completion of the CPFIS Self-Awareness Questionnaire (SAQ) |
| Investment options | A wide range of investment products, including investment-linked insurance products (ILPs), Singapore Government Bonds (SGBs), Treasury Bills (T-bills), Exchange-Traded Funds (ETFs), Fund Management Accounts, Fixed Deposits (FDs), and more |
| Stock and gold limits | Up to 35% of investible savings can be invested in stocks, and up to 10% in gold products |
| Withdrawal | Investments can be withdrawn after setting aside the Full Retirement Sum (FRS) in your Retirement Account (RA) |
What You'll Learn
Investment Schemes
The CPF Investment Scheme (CPFIS) allows you to invest your Ordinary Account (OA) and Special Account (SA) savings to enhance your retirement savings. To be eligible to invest under the CPFIS, you must be at least 18 years old, not an undischarged bankrupt, and have more than $20,000 in your OA and/or more than $40,000 in your SA. You must also complete the CPFIS Self-Awareness Questionnaire (SAQ).
Under the CPFIS, you can invest in a wide range of products, including:
- Investment-linked insurance products (ILPs)
- Singapore Government Bonds (SGBs)
- Treasury Bills (T-bills)
- Exchange Traded Funds (ETFs)
- Fund Management Accounts
- Fixed Deposits (FDs)
- Statutory Board Bonds
- Bonds Guaranteed by the Singapore Government
- Gold products (e.g. Gold certificates, Gold savings accounts, Physical Gold)
It is important to note that the CPF Board does not endorse any product providers or investment products included under the CPFIS, and all investments are subject to risk. Before investing, it is recommended to assess your risk tolerance and consider your overall financial situation.
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Investment Accounts
The CPF Investment Scheme (CPFIS) allows you to invest your Ordinary Account (OA) and Special Account (SA) savings to enhance your retirement savings. You must be at least 18 years old and meet other criteria, such as having more than $20,000 in your OA and/or $40,000 in your SA, to invest under CPFIS.
To invest your OA savings, you need to open a CPF Investment Account with a CPFIS agent bank, such as OCBC or UOB. You can then approach product providers directly to buy or sell investments. For SA savings, you don't need to open a CPF Investment Account; simply approach the product providers directly.
You can only have one CPF Investment Account at any time. To check your investments, you can log in to your bank's online platform or app, or visit a CPF Service Centre with your identity card.
It's important to understand the risks involved with investing. All investments are subject to risk, and you may lose part or all of your investments due to financial market changes. Before investing, consider your financial goals, risk tolerance, and personal circumstances. It is recommended to only invest with money you can afford to lose.
There are various investment options available under the CPFIS, including:
- Investment-linked insurance products (ILPs)
- Singapore Government Bonds (SGBs)
- Treasury Bills (T-bills)
- Exchange Traded Funds (ETFs)
- Fund Management Accounts
- Fixed Deposits (FDs)
- Statutory Board Bonds
- Bonds Guaranteed by the Singapore Government
- Gold products (e.g., Gold certificates, Gold savings accounts, Physical Gold)
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Investment Risks
All investments are subject to risk, and you may lose part or all of your investments due to financial market changes. Before investing, it is crucial to understand the risks of various investment options to ensure that they align with your investment goals, risk tolerance, and personal circumstances.
Firstly, it is important to assess your risk tolerance and understand the amount of risk you are comfortable with and can afford to take. Ask yourself if you can handle temporary short-term losses in your investments and whether you have enough savings to absorb the investment risks. A good rule to follow is to only invest money that you can afford to lose, as there is always a chance that your investments may decrease in value.
Additionally, consider the investment time horizon. As CPF savings are typically meant for long-term retirement purposes, it is essential to evaluate the duration of your investments. If you are nearing retirement, you may opt for shorter-term investments.
Furthermore, take into account your overall financial situation and the interest rates you are earning from your CPF accounts. Compare these with the potential returns and costs of investments, such as fees and charges. Ensure that you are confident of earning more from your investments than the CPF interest.
Lastly, be aware that higher-risk investments often offer the potential for greater rewards. Conduct thorough research and only invest in products that you understand. Diversify your investment portfolio by including stable assets that are less susceptible to market trends.
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Investment Options
The CPF Investment Scheme (CPFIS) allows you to invest your Ordinary Account (OA) and Special Account (SA) savings in a wide range of investment options to boost your retirement savings. However, it's important to remember that all investments carry risks and the CPF Board does not endorse any specific product providers or investment products under the CPFIS.
- Investment-linked insurance products (ILPs)
- Singapore Government Bonds (SGBs)
- Treasury Bills (T-bills)
- Exchange-Traded Funds (ETFs)
- Fund Management Accounts
- Fixed Deposits (FDs)
- Statutory Board Bonds
- Bonds Guaranteed by the Singapore Government
- Stocks: You can invest up to 35% of your investible savings in stocks.
- Gold products: You can invest up to 10% of your investible savings in gold products such as gold certificates, gold savings accounts, or physical gold.
Before investing, it's crucial to assess your risk tolerance, investment goals, and time horizon. You should also ensure that you have a solid understanding of the products and their associated risks.
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Investment Returns
The CPF Investment Scheme (CPFIS) allows you to invest your Ordinary Account (OA) and Special Account (SA) savings to enhance your retirement savings. However, not all your savings from your OA and SA can be used for investments as the money in these accounts is primarily for your retirement needs.
When investing with your CPF savings, it's important to understand that the interest earned from your OA or SA savings will be affected. Therefore, you need to select investment options with high enough returns to compensate for the difference in interest earned by your OA or SA savings.
You can invest your CPF savings in a wide range of investment products, including:
- Investment-linked insurance products (ILPs)
- Singapore Government Bonds (SGBs)
- Treasury Bills (T-bills)
- Exchange-Traded Funds (ETFs)
- Fund Management Accounts
- Fixed Deposits (FDs)
- Statutory Board Bonds
- Bonds Guaranteed by the Singapore Government
- Gold products (e.g., Gold certificates, Gold savings accounts, Physical Gold)
It's important to note that the CPF Board does not endorse any product providers or investment products included under the CPFIS. All investments come with risks, and there is a possibility of losing some or all of your investments. Therefore, it is recommended to only invest with money that you can afford to lose and to conduct thorough research before committing your funds.
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Frequently asked questions
CPF refers to the Central Provident Fund, a social security savings plan in Singapore. It is meant to help Singapore Citizens and Permanent Residents save for retirement.
You can invest your CPF savings through the CPF Investment Scheme (CPFIS). This scheme allows you to invest your Ordinary Account (OA) and Special Account (SA) savings in a wide range of investments to enhance your retirement savings.
To invest under CPFIS, you must be at least 18 years old, not an undischarged bankrupt, and have more than $20,000 in your OA and/or $40,000 in your SA. You also need to complete the CPFIS Self-Awareness Questionnaire (SAQ).
Investment options under CPFIS include Investment-Linked Insurance Products (ILPs), Singapore Government Bonds (SGBs), Treasury Bills (T-bills), Exchange-Traded Funds (ETFs), Fund Management Accounts, Fixed Deposits (FDs), and more.
You can withdraw your CPFIS-OA and CPFIS-SA investments, as well as the cash balance in your Investment Account, after setting aside the Full Retirement Sum (FRS) in your Retirement Account (RA). You can submit your application to the CPF Board online or by mail.
