2 in 3 working Singaporeans do not have savings to last them beyond 6 months...

I've chanced upon an old StraitsTimes news reported in 2020 that 2 in 3 working Singaporeans cannot survive more than 6 months if they lose their job.

I was very surprised with that survey done by OCBC because Singaporeans are one of the world’s bigger savers according to the World Bank Data 2017.

I suddenly realized that in most financial planning book, they advocate 3 to 6 months liquidity but I personally believe that we need at least 12 months although most Singaporeans can get a job within 3 to 6 months. Creating sufficient buffer is to ensure that we have a piece of mind to focus on getting a job of our choice.

I also realize that in this era of rapid economic development, instant gratification become more common to our younger generation plus the convenience of online shopping, spending money becomes so easy. Saving for unforeseen circumstances and future need is getting more challenging and it requires a lot more discipline than the past.

Our job as a Financial Planner is no longer just selling insurance policy but to help our clients to have a holistic view of their money matters.

Although having at least 6 months buffer is necessary before any financial planning, we will still help our clients to set-up their “Shield Plan” (Hospital Insurance) with or without that 6 months buffer because it is the lifeline (救命钱) we must have.

IMHO, the priorities in financial planning will be 1) Hospital 2) Life Insurance 3) Saving & Wealth Accumulation 4) Wealth Distribution (Legacy) being the last.

What is your view?

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