A scheme that lets you invest part of your CPF savings (above the minimum balances you must keep) in approved products such as unit trusts, ETFs, shares, and insurance plans, instead of leaving them to earn the default CPF interest. The aim is potentially higher returns, but you take on market risk and any losses come out of your retirement savings.
Example: An investor might use CPFIS to buy a low-cost global equity ETF, hoping to beat the CPF default interest over the long run.
Only if you are confident of consistently beating the CPF default rates (the OA floor is 2.5% and the Special/Retirement Account floor 4% as of 2025) after fees. Those rates are guaranteed and risk-free, so CPFIS only makes sense for the portion of savings you can leave invested for the long term and are willing to risk. Verify the current rates and rules with the CPF Board.
No. CPFIS requires you to keep a minimum balance before you can invest, and only the amount above that threshold is investible. The exact thresholds, approved-product list, and the rules that apply at different ages should be checked against the CPF Board.