To risk or not to risk your risk-free 4% CPF return?

For decades, the CPF Special Account has been the dependable option. Four per cent, capital guaranteed, triple-A credit rating. Hard to argue with that but a new scheme arriving in 2028 is about to offer something different: a life-cycle portfolio that takes more risk when you are young and dials it back as you age. The question is whether that trade-off actually makes sense for you, and the answer is more nuanced than the headlines suggest.

In this episode of Money Hacks, a podcast by The Business Times, Howie Lim is joined by Christopher Tan, CEO of Providend, and Genevieve Cua, wealth editor and host of WealthBT, at The Business Times, to work through what the new CPF life-cycle portfolio scheme actually means for ordinary members. This is a conversation with two people who have been thinking about this for a long time and are not afraid to say when something is not for everyone.

Why listen

• Why you probably should not use your Special Account for it Tan was on the advisory panel that proposed this scheme a decade ago. His view on where your CPF money should actually come from may surprise you.

• The difference between your ability to take risk and your willingness to take it The life-cycle model handles one of these well and largely ignores the other. Tan explains why that gap is his biggest concern.

• What guard rails exist and whether they are enough With no government guarantee attached, the education question is urgent. Both guests are candid about how much work still needs to be done before 2028.

• Who this scheme is genuinely suited for Not everyone needs this and both guests are refreshingly direct about who does and who does not.

Your CPF is not the place to learn investing the hard way. This episode helps you figure out which side of that line you are on. Listen now.

Money Hacks is the flagship personal finance podcast from The Business Times. Catch past episodes at bt.sg/podcasts. Have a burning question or episode idea? Email the team at btpodcasts@sph.com.sg.

---

Written and hosted by: Howie Lim (howielim@sph.com.sg)

With Genevieve Cua, wealth editor, The Business Times & Christopher Tan, CEO, Providend

Edited by: Howie Lim & Claressa Monteiro

Produced by: Howie Lim & Chai Pei Chieh

Video production and editing: Studio +65

A podcast by BT Podcasts, The Business Times, SPH Media

---

Follow BT Money Hacks podcasts every Monday:

Channel: bt.sg/btmoneyhacks

Amazon: bt.sg/mham

Apple Podcasts: bt.sg/oeXe 

Spotify: bt.sg/oeGN 

YouTube Music: bt.sg/mhyt

Website: bt.sg/moneyhacks

Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisors for independent advice. 

---

Discover more BT podcast series:

BT Correspondents: bt.sg/btcobt

BT Market Focus at: bt.sg/btmktfocus

BT Podcasts at: bt.sg/pcOM

BT Lens On: bt.sg/btlenson