CPF Investment Scheme 2028: Gold ETF Strategy
Budget 2026 just announced a new voluntary CPF life-cycle investment scheme launching in 2028. If you've ever wanted gold exposure through CPF but found the current system too complicated or restrictive, this could change everything. Here's what was announced, what it means for gold ETFs, and what you should do right now.
What Was Announced: The New CPF Investment Scheme
According to The Straits Times, CPF Board will introduce a new voluntary investment scheme by 2028 with these key features:
- Life-cycle portfolios: Professionally managed funds that automatically shift from growth to conservative as you age
- Low-cost mandate: CPF Board will ensure fees are significantly lower than current CPFIS options
- 2-3 appointed providers: Selected through competitive tender—likely major fund managers
- Voluntary: Existing CPFIS remains available; this is an additional option
- Simplified: No need to research individual stocks or funds—just choose a provider
This is CPF Board's response to data showing that most CPFIS investors underperform the basic CPF interest rate of 2.5-4%. Life-cycle portfolios aim to deliver better risk-adjusted returns for the average member.
Current CPFIS Gold Options: How It Works Today
Before looking forward, let's understand what's available now. Under the current CPF Investment Scheme, you can invest in gold through:
SPDR Gold Shares (SGX: O87)
- The only gold ETF available through CPFIS
- Listed on SGX, backed by physical gold stored in London and Zurich
- Expense ratio: 0.40% per annum
- Minimum investment: ~$300 (1 board lot of 10 units)
CPFIS Requirements for Gold ETF Investment
| Requirement | Details |
|---|---|
| Minimum OA balance | $20,000 must remain in OA after investment |
| Investable amount | OA balance minus $20,000 |
| SA investment | $40,000 must remain; gold ETFs allowed with remainder |
| Stock limit | Up to 35% of investable savings in any single stock/ETF |
| Brokerage account | Must open CPF Investment Account with approved broker |
These requirements exclude many younger Singaporeans and those with housing commitments. The new scheme could significantly lower these barriers.
Will Gold ETFs Be in the New Life-Cycle Scheme?
The short answer: very likely, but indirectly.
Life-cycle portfolios globally follow well-established allocation models. Here's how major life-cycle funds typically allocate:
| Age Group | Equities | Bonds | Commodities/Gold | Cash |
|---|---|---|---|---|
| 25-35 | 70-80% | 10-15% | 5-10% | 5% |
| 35-45 | 60-70% | 15-25% | 5-10% | 5% |
| 45-55 | 45-55% | 25-35% | 5-10% | 10% |
| 55-65 | 30-40% | 35-45% | 5-10% | 15% |
Notice that commodities/gold allocation remains consistent at 5-10% across all age groups. Gold's role as a portfolio stabiliser means it doesn't reduce with age—unlike equities. This is because gold's value comes from its negative correlation with stocks during crises.
If Singapore's new scheme follows global best practices, a 25-year-old with $50,000 in CPF could have $2,500-5,000 automatically invested in gold ETFs—without needing to open a separate investment account or meet the $20,000 minimum.
New Scheme vs CPFIS: Which Is Better for Gold?
| Factor | CPFIS (Current) | Life-Cycle Scheme (2028) | Winner |
|---|---|---|---|
| Gold control | You choose amount and timing | Auto-allocated (5-10%) | CPFIS |
| Accessibility | $20K minimum, self-directed | Expected lower minimum | Life-Cycle |
| Fees | Brokerage + ETF expense ratio | Single low-cost fee | Life-Cycle |
| Rebalancing | Manual (most don't do it) | Automatic | Life-Cycle |
| Gold allocation size | Up to 35% of investable savings | Likely capped at 5-10% | CPFIS |
Bottom line: If you want maximum gold exposure through CPF, CPFIS gives you more control. If you want hands-off gold exposure with lower barriers and automatic rebalancing, the new scheme will likely be better.
What to Do NOW (2026-2028 While Waiting)
The new scheme launches in 2028—that's two years away. Here's your gold investment strategy in the meantime:
1. Use CPFIS for Gold ETFs (If Eligible)
If you have $20,000+ in your OA after housing set-aside, consider buying SPDR Gold Shares (O87) through CPFIS now. You can always switch to the life-cycle scheme later if you prefer hands-off management.
2. Maximise SRS Contributions
SRS contributions are tax-deductible (up to $15,300/year for Singaporeans, $35,700 for foreigners) and can be invested in gold ETFs with no minimum balance requirement. This is currently the most tax-efficient way to add gold to your retirement portfolio. See our CPF and SRS gold guide.
3. Build Physical Gold Holdings with Cash
Physical gold through UOB offers zero counterparty risk and is GST-exempt. Use dollar-cost averaging to build your position while waiting for the new CPF scheme.
CPF Contribution Rate Increases: More to Invest
Budget 2026 also announced CPF contribution rate increases for senior workers, effective January 2027:
| Age Group | Current Total Rate | New Rate (from 2027) | Additional Monthly (at $8,000 salary) |
|---|---|---|---|
| 55-60 | 31% | 32.5% | +$120 |
| 60-65 | 22% | 23% | +$80 |
For a 57-year-old earning $8,000/month, that's an additional $1,440/year flowing into CPF—potentially available for gold ETF investment through either CPFIS or the new scheme.
Age-Based Gold Strategy Across CPF, SRS, and Cash
Here's a practical framework for gold allocation across your different investment vehicles:
| Age | CPF Gold (ETFs) | SRS Gold (ETFs) | Cash Gold (Physical) | Total Gold Target |
|---|---|---|---|---|
| 25-35 | 2-3% | 1-2% | 2-5% | 5-10% |
| 35-45 | 3-5% | 2-3% | 3-5% | 8-13% |
| 45-55 | 3-5% | 2-3% | 5-7% | 10-15% |
| 55+ | 5-7% | 3-5% | 5-8% | 13-20% |
These are guidelines, not rules. Your actual allocation should reflect your risk tolerance, existing assets, and retirement timeline. For personalised allocation advice, see our portfolio allocation guide.
Tax Comparison: CPF vs SRS vs Cash Gold
| Factor | CPF Gold ETF | SRS Gold ETF | Cash Physical Gold |
|---|---|---|---|
| Tax on purchase | None | Tax-deductible contribution | GST-exempt (IPM) |
| Capital gains tax | None | None (within SRS) | None (Singapore) |
| Withdrawal tax | None (after 55) | 50% of gains taxed at marginal rate (after 62) | None |
| Early withdrawal penalty | Housing/medical only | 100% of gains taxed + 5% penalty | None—sell anytime |
| Liquidity | Low (locked until 55) | Low (penalty before 62) | High (sell at UOB anytime) |
Frequently Asked Questions
When does the new CPF investment scheme launch?
CPF Board expects to launch the new life-cycle investment scheme in 2028. Details on providers, fees, and exact portfolio compositions will be announced closer to launch. The existing CPFIS will continue alongside the new scheme.
Can I invest in gold through the new CPF scheme?
While specific portfolio compositions haven't been confirmed, life-cycle portfolios globally allocate 5-10% to commodities including gold. If the new scheme follows international best practices, gold ETF exposure should be included in the professionally managed portfolios.
Should I wait for the 2028 scheme or invest now?
Don't wait. Two years of potential gold returns could be significant—gold rose 93% in the past 12 months alone. Use current options: CPFIS for ETFs, SRS for tax-efficient gold investment, and cash for physical gold from UOB.
What is the minimum CPF balance needed to invest in gold ETFs?
Under the current CPFIS, you need at least $20,000 in your OA after setting aside money for housing. The investable amount is your OA balance minus $20,000. The new 2028 scheme is expected to have lower minimums, making gold more accessible.
Is SRS better than CPF for gold investment?
SRS offers tax-deductible contributions, no minimum balance for gold ETFs, and more flexibility than CPFIS. However, early withdrawals (before 62) face full taxation plus a 5% penalty. For most investors, a combination of SRS and cash purchases provides the best flexibility. See our full gold ETF vs physical gold comparison.
Conclusion
The new CPF life-cycle investment scheme is the most significant change to Singapore's retirement investment landscape in years. For gold investors, it could mean automatic, low-cost gold exposure for millions of CPF members who currently find CPFIS too complex or restrictive.
But don't wait for 2028. The tools for gold investment are available today—CPFIS, SRS, and physical gold from UOB. Build your position now, and let the new scheme enhance your strategy when it arrives.
Check today's UOB gold prices and explore how Budget 2026 affects gold investors more broadly.