A collaboration between the Monetary Authority of Singapore (MAS), the Association of Banks in Singapore (ABS), Association of Financial Advisers (Singapore) (AFAS) and Life Insurance Association (LIA) has launched the Basic Financial Planning Guide for individuals to better their financial wellbeing.

Available on Singapore’s MoneySense website, the guide provides practical strategies for individuals to take control of their savings, insurance and investment needs.

It encourages Singaporeans to:

• Set aside at least 3 to 6 months’ of expenses for emergency needs.
• Obtain insurance protection of:
  • 9 times annual income for death and total and permanent disability.
  • 4 times annual income for critical illness.
• Spend at most 15% of income on insurance protection; and
• Invest at least 10% of income for retirement and other financial goals.

“The Basic Financial Planning Guide provides Singaporeans with simple and actionable steps they can take to enhance their financial well-being. I thank the industry associations for their support in designing the Guide, and for their continued partnership in using the Guide to advise and help uplift the financial wellness of Singaporeans,” Lim Tuang Lee, Assistant Managing Director (Capital Markets), MAS, and member of the MoneySense Council, said.

The announcement and launch come after a survey conducted by MoneySense in 2021, the National Financial Capability Survey, found Singaporeans generally had good financial habits but needed to be more active when it comes to financial planning and preparing for the future.

“ABS supports financial literacy programmes as they help our customers know how to organise their finances to achieve their life goals. The Guide is a useful starting point for all Singaporeans on their financial planning journey,” Ong-Ang Ai Boon, Director of ABS, said.

“The Association of Financial Advisers (Singapore) is pleased to participate in this easy-to-use financial guide for Singaporeans at various life stages. AFAS is committed to incorporating the Guide in our dealings with consumers and at the same time to carry out thorough financial planning conversations with consumers,” Raymond Ng, President of AFAS, said.

The guide will also be made available in six formats tailored to suit individuals at different life stages, including fresh entrants to the workforce, working adults with young children, working adults supporting aged parents and those approaching retirement.

“LIA is driven to fostering a progressive life insurance industry by collectively enhancing customer understanding of the importance of financial planning. We are confident that the collaborative endeavour of MAS and industry associations to develop these Guides for basic financial planning will raise awareness among Singaporeans, enabling them to better prepare for various life stages and unforeseen situations,” Dennis Tan, President of LIA, said.