SMU Professor of Finance Benedict Koh and NUS Assistant Professor Joelle Fong believe the yet-to-be-launched CPF Lifetime Retirement Investment Scheme will offer low-cost, passively managed funds. They cited a recent study by SMU that showed that while the majority of elderly Singaporeans understand interest compounding and inflation, less than half understand the concept of risk diversification. This underscores the requirement for a higher level of financial literacy before investing in risky security markets. The CPF Lifetime Retirement Investment Scheme simplifies the investment decision-making and allows for dynamic asset allocation which changes allocation between growth and conservative asset allocation as one ages. It will be seen as an improvement on the current CPF scheme.