By Shawn Lee, CFP®
If you’ve only got a minute:
- Prime Minister Lawrence Wong announced a new CPF Investment Scheme, launching in 2028, that will utilise the glidepath investing approach.
- The portfolio automatically shifts asset allocations from equities to bonds as an investor age, reducing risk closer to retirement.
- To provide investors access to the glidepath approach, DBS in collaboration with J.P. Morgan Asset Management launched the DBS Retirement digiPortfolio in 2024 to a highly positive reception.
CPF members can look forward to a new CPF investment scheme which will be rolled out in 2028. This exciting development was announced by PM Lawrence Wong in his Budget speech on 12 February 2026.
The scheme aims to help long-term investors who are willing to accept some risk for potentially higher returns but may lack expertise in navigating offerings from the CPF Investment Scheme or prefer a hands-off approach to managing their investments.
It employs a life-cycle investment approach, featuring a predefined glidepath to guide your investments toward retirement.
Key features of the new CPF scheme
Automatic age-based rebalancing of investment portfolio mix, with phased liquidation: Portfolio mix will automatically rebalance along a glidepath before being liquidated in phases by the target date
Simplified decision-making: 2 to 3 reputable product providers will be selected to offer a small number of options
Low fees: Capped to minimise costs
What is a glidepath?
A glidepath refers to an investment portfolio that automatically shifts allocations from equities to bonds as the investor ages.
In earlier stages of your life, the goal is to take advantage of your long-term horizon to grow your retirement funds by participating in equity markets. Although more volatile, over the long-term, equities tend to outperform other asset classes.
As you approach your desired retirement age, the value of your investments would have grown considerably. This also means that the potential losses that can occur during any market downturn are also greater.
With less time to recover from market downturns, it becomes more important to focus on stability over growth. This means shifting your focus to bonds over equities so that you can conserve your hard-earned wealth.
The beauty of glidepath lies in its automation and simplicity.
Key benefits of glidepath
Automatically reduces risks: Through the glidepath mechanism, funds invest more conservatively as you near retirement, reducing your exposure to market volatility when you can least afford it.
Automatic rebalancing: The funds rebalance regularly to maintain target allocations – something many investors struggle to do on their own. This process requires selling winners and buying underperformers, which can be psychologically difficult to do.
Diversification: These funds provide broadly diversified exposure to financial markets while automatically rebalancing to maintain a pre-established asset allocation.
For busy Singaporeans who want to grow their savings without the hassle of active management, this new scheme offers a practical, set-and-forget solution.
Investing using the glidepath approach
In 2024, DBS, in collaboration with J.P. Morgan Asset Management, launched DBS Retirement digiPortfolio to a highly positive reception.
This offering is a first in Asia glidepath that not only automatically adjusts its asset allocation to your life stage and retirement timeline but also allows you to automate your drawdowns based on your retirement income needs.
Read more: Is lump-sum investing or DCA better for you?
Find out more about: digiWealth
How Retirement digiPortfolio works
The Retirement digiPortfolio accounts for the number of years to your retirement age when determining the appropriate mix of equities and bonds.
As you grow older, the portfolio will gradually glide from more risk assets to more stable ones. This is fully automated so there is no need to make any transactions on your own. You will be able to keep abreast of the portfolio holdings and transactions on DBS digibank.
Examples of DBS Retirement digiPortfolio asset allocation:
Even in retirement, the DBS investment team continues to manage the portfolio to ensure it remains updated to the latest investment views. This is to ensure that your portfolio remains invested even as you start withdrawing from the portfolio for your retirement income needs.
Read more: 5 investment ideas for 2026
Find out more about: Retirement digiPortfolio
Secure your financial future
Both the upcoming CPF investment scheme and existing solutions like the DBS Retirement digiPortfolio allow you to effortlessly grow your wealth and transition smoothly into your golden years.
By leveraging these intelligently designed, automated approaches, you can confidently navigate the complexities of long-term investing, ensuring your retirement savings are not just growing, but are also well-protected and aligned with your evolving life stages.
They simplify your investment journey, allowing you to focus on what matters most in your life.
Ready to invest?
Retirement Portfolio is available on our digibank mobile app. Just log in and tap on the digiWealth tab to find it!
