Mas Publishes Basic Financial Planning Guide For Singaporeans

SINGAPORE: The Monetary Authority of Singapore (MAS) has launched a basic financial guide to help Singaporeans manage their money better. It was prepared in partnership with the Association of Banks in Singapore (ABS), the Association of Financial Advisers (Singapore) (AFAS), and the Life Insurance Association (LIA) and launched on October 7. This new Basic Financial Planning Guide offers simple savings, insurance, and investing advice. It's a response to the fact that many people in Singapore, according to a 2021 MoneySense survey, don't have a savings plan for their retirement. According to the MAS, these guidelines will help Singaporeans take steps to enhance their financial well-being.

Key advice in the Basic Financial Planning Guide

1. Emergency fund: Keep aside enough money to cover your living expenses for three to six months. This way, you have a cushion if unexpected expenses pop up.
2. Insurance: Get insurance that's equal to nine times your yearly income for when you can't work because of illness or injury. For critical illnesses, you should have four times your annual income covered. Try to spend no more than 15 percent of your income on insurance.
3. Investing: Put at least 10 percent of your income into investments, like stocks or savings for your future. This is crucial for your long-term financial security.

Starting in January 2024, the guide will be available in different versions to suit people at various stages of life, like those starting their careers, parents with young kids, caregivers for elderly family members, and those nearing retirement. MAS' Mr Lim Tuang Lee, also a member of the MoneySense Council, thanked the industry groups for their help in creating the guide. He said, "The Basic Financial Planning Guide provides Singaporeans with simple and actionable steps they can take to enhance their financial well-being." ABS' Mrs Ong-Ang Ai Boon thinks financial literacy programmes are important because they help people manage their money to meet their life goals. She believes this guide is an excellent starting point for all Singaporeans and encourages anyone needing personalized advice to talk to their bank. Mr Raymond Ng, President of AFAS, also spoke up about how easy this guide is to use. He said, "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." LIA's President, Mr Dennis Tan, is confident that this partnership will help Singaporeans prepare for different life stages and unexpected situations. The Life Insurance Association's mission is to help people understand the importance of financial planning. You can access the Basic Financial Planning Guide here. This guide is a big step to help people in Singapore handle their money better. It's easy to follow and can make a big difference in your financial life!/TISG Read also:  How to Start Planning For Retirement in Your 20s and 30s  How To Be Financially Prepared to Buy An HDB Flat Before You Turn 35  How to craft a rock-solid financial future in your 20s