How CPF Investing Works
Make your CPF savings work harder with CPFIS-approved investments.
What is CPFIS?
The CPF Investment Scheme (CPFIS) allows you to invest your CPF Ordinary Account (OA) and Special Account (SA) savings in a range of investments to potentially earn higher returns than the CPF interest rates.
CPFIS is administered by the CPF Board and includes investments such as shares, exchange-traded funds (ETFs), gold, and professionally managed products (funds).
Why Invest Your CPF?
Your CPF-OA earns 2.5% per annum, while CPF-SA earns 4.0% per annum. These are guaranteed, risk-free rates. But for long-term investors willing to accept some market risk, investing could grow your retirement savings faster.
Let us see what happens to $100,000 over 20 years at different growth rates.
The difference between leaving $100,000 in CPF-OA at 2.5% versus investing it at 7% p.a. over 20 years? Approximately S$223,000. Time and compounding make a significant impact.
Figures are for illustration only. Actual returns depend on market conditions and investment choices. Past performance does not guarantee future results. Investing involves risk, including the potential loss of principal.
The Enhanced Retirement Sum Consideration
At age 55, your CPF savings are restructured. A portion goes into your Retirement Account (RA) to meet your retirement sum requirements - Basic Retirement Sum (BRS), Full Retirement Sum (FRS), or Enhanced Retirement Sum (ERS).
If your combined OA and SA balances exceed the ERS at 55, the excess remains in your OA. This excess could have been invested earlier to potentially grow faster than the CPF interest rate.
Key insight: If you are on track to exceed your ERS by age 55, you may have "excess" CPF that is just sitting at 2.5% (OA) or 4.0% (SA) when it could be working harder. Identifying this excess early gives you more time for potential compounding.
CPF-OA vs CPF-SA: Different Rules
CPF-OA and CPF-SA have different interest rates, minimum balances, and investment options.
| Feature | CPF-OA | CPF-SA |
|---|---|---|
| Interest Rate | 2.5% p.a. | 4.0% p.a. |
| Extra Interest (first $60K combined) | +1% on first $20K | +1% on remaining $40K |
| Minimum Balance Before Investing | $20,000 | $40,000 |
| Investment Options | Wider range (stocks, ETFs, gold, funds) | More restricted (selected funds only) |
| Primary Purpose | Housing, education, investment | Retirement savings |
💡 Tip: Because CPF-SA already earns 4% risk-free, the hurdle rate for SA investments is higher. Make sure any CPF-SA investment has a strong track record of beating 4% consistently.
Why Funds Matter for CPF Investing
For CPF-OA investing, CPFIS allows investment in stocks, ETFs, gold, and funds, but with limits. Stocks and shares are capped at 35% of your investible OA savings; gold at 10%. Funds can be invested without a percentage cap.
This means if you want to build a diversified portfolio to outperform the 2.5% OA interest rate, funds naturally become the backbone of your strategy - whether used alone or alongside other asset classes.
Note: CPF-SA has more restricted investment options. Stocks, ETFs, and gold are not available for CPF-SA - only selected professionally managed products (funds) that meet additional CPF Board requirements.
| Investment Type | CPFIS Limit |
|---|---|
| Stocks and Shares | Up to 35% of investible savings |
| Gold | Up to 10% of investible savings |
| Professionally Managed Products (Funds) | No percentage cap |
What are professionally managed products? Under CPFIS, this category includes unit trusts and investment-linked products (ILPs) that are on the CPF-approved list. These funds are managed by professional fund managers and must meet CPF Board requirements.
A Note on CPF-SA Investing
CPF-SA earns a guaranteed 4.0% p.a. - a strong risk-free return. Investing your CPF-SA means giving up this guarantee in exchange for the potential (not certainty) of higher returns.
Our honest assessment: While our Conservative Portfolio is CPF-SA eligible, its historical return of 3.63% p.a. does not outperform the risk-free 4% currently offered by CPF-SA. For most investors, leaving CPF-SA funds to compound at 4% is likely the better choice. We have access to additional solutions that have historically outperformed CPF-SA rates, but we are not offering them at this time. We will update this page when they become available.
For CPF-OA, the calculus is different. At 2.5%, the hurdle rate is lower, and our portfolios have historically outperformed this benchmark over the long term.
Our Portfolios & CPF Eligibility
All three of our portfolios are available for CPF-OA investments. Only the Conservative Portfolio is eligible for CPF-SA.
How to Get Started
Key CPFIS Rules to Know
Before you invest, here are the essential CPFIS rules.
| Minimum Balance (OA) | Keep at least $20,000 in OA before investing. Only amounts above this can be used. |
| Minimum Balance (SA) | Keep at least $40,000 in SA before investing. Only amounts above this can be used. |
| Stock Limit | Up to 35% of investible savings can be invested in stocks, shares, and stock ETFs. |
| Gold Limit | Up to 10% of investible savings can be invested in gold ETFs and other gold products. |
| Funds (No Limit) | Professionally managed products (unit trusts, ILPs) from the approved list have no percentage cap. |
| Proceeds Return to CPF | When you sell CPFIS investments, proceeds go back to your CPF account, not cash. |
| Self-Awareness Questionnaire | First-time CPFIS investors may need to complete a questionnaire to understand the risks involved. |
For complete details on CPFIS rules, visit the CPF Board website.
Ready to Make Your CPF Work Harder?
Book a consultation to discuss your CPF investment options and find a portfolio that fits your goals and timeline.
Book a ConsultationThis page is for educational purposes only and does not constitute financial advice. All investments carry risk, including the potential loss of principal. Past performance does not guarantee future results.
CPF policies, contribution rates, interest rates, and retirement sums may be updated over time. The calculator and information on this page reflect our understanding as of December 2025 and may not reflect current conditions when you read this.
For official CPF information, please refer to the CPF Board website or your CPF account statements. Consult your Financial Consultant for personalised advice and the latest updates.