In his Budget 2026 speech, Prime Minister and Finance Minister Lawrence Wong announced that Central Provident Fund (CPF) members can expect a new investment scheme by 2028. Targeted at those who are able and willing to tolerate higher risk for higher returns, the scheme aims to grow retirement savings more effectively over members’ working lives.
The incoming scheme is likely to differ significantly from the existing CPF Investment Scheme (CPFIS), which is designed for members with the expertise, time and inclination to manage investments actively. But CPFIS today offers more than 700 products across a wide range of strategies. For many members, that breadth of choice can be intimidating. As American psychologist Barry Schwartz has argued through the “paradox of choice”, more choice can sometimes lead to poorer decisions and suboptimal outcomes.
Christopher Gee is deputy director (research) and senior research fellow at the Institute of Policy Studies, National University of Singapore.
This piece was first published in The Straits Times on 16 Feb 2026.