MAS and Financial Industry Launch Basic Financial Planning Guide

The Monetary Authority of Singapore (MAS), in collaboration with several financial industry associations, has introduced a Basic Financial Planning Guide which is addressed at the general population and retail financial market clients or investors. The guide offers clear and straightforward advice to be considered by individuals to improve their financial well-being, particularly during retirement. It sets out recommendations as to
– the setting aside of emergency funds (3 to 6 months of the amount of total expenses);
– the level of protection by insurance policies and the maximum amount spent on such policies (max. 15% of income);
– the amount that should be contributed towards retirement savings (at least 10% of income) and corresponding investments, including investments in Treasury securities, investment funds, and ETFs; and
– the (financial) arrangements that should be made prior to death.
The guide will be available in various formats depending upon individuals‘ life stages from January 2024. It came as a response to a survey conducted in 2021 which revealed that – although Singapore citizens are handling their finances quite well – they are not performing financial planning to a sufficient degree.
MAS and the associations have also drawn up corresponding FAQs.