KUALA LUMPUR - The Central Provident Fund (CPF) members who want to invest their savings through a new retirement focused scheme will need to wait longer, even though the option was first accepted by the government in 2016.

The Ministry of Manpower said it is in the final stages of reviewing the CPF Lifetime Retirement Investment Scheme (LRIS) and will provide updates when it is ready.

The proposed LRIS is designed as a simple and low-cost alternative to existing Central Provident Fund Investment Scheme (CPFIS) products.

It is meant for CPF members who want to invest for higher returns but lack the time, resources or financial knowledge to manage investments actively.

Manpower Minister, Tan See Leng addressed the issue in Parliament after Shawn Loh (Jalan Besar GRC) asked whether the delay could deny members the chance to earn higher returns by taking more risk.

Loh noted that a typical portfolio with 65% in equities and 35% in bonds delivered average annual returns of 9.5% over the past five years.

Tan said the government is studying how to better support CPF members in planning for retirement.

He added that any retirement investment option introduced must strike the right balance between risk and return.

Tan also said CPF members already have access to several low-cost investment funds under CPFIS that offer the potential for higher returns.

Data from Morningstar showed that all CPFIS funds recorded an average one-year return of 11.78% as of the third quarter ended September 2025.

Over three years, cumulative returns reached 37.03%, or about 10.74% a year.

Agreeing with Loh’s point that time in the market matters more than timing, Tan said outcomes still depend on how long investors can stay invested.

He explained that investors who are forced to sell during a market downturn for retirement needs may suffer losses and be unable to recover in time.

“The objective has always been to safeguard retirement adequacy,” Tan said.

When asked by Louis Chua (Sengkang GRC) if there would be an update in 2026, Tan said they are close to finalising the details, while noting that market changes since 2016 require a careful review.

Responding to Associate Professor Jamus Lim (Sengkang GRC), Tan also said the scheme will likely include a mix of global equities and bonds using a glide path strategy.

He explained that under this approach, investors take more risk when young and gradually shift to safer assets as they approach retirement.

CPF members who prefer no investment risk can continue leaving their savings in their CPF accounts to earn guaranteed interest rates.