Before life-cycle portfolios: A primer on how CPF really works

IN THE past month since Finance Minister Lawrence Wong announced the launch of life-cycle funds for the Central Provident Fund (CPF) in 2028, there has been considerable discussion about what such portfolios are and whether CPF members should participate when the scheme is introduced.

In this article, I hope to provide clarity on the portfolios, but more importantly, to explain them within the broader context of Singapore’s CPF Retirement Scheme and how CPF helps Singaporeans plan for retirement.

Many people do not realise that the CPF Retirement Scheme works almost like a framework built around sets of three – in three life phases to achieve three objectives.