Mr Mohd Guntor Sadali, Editor, Berita Harian

Distinguished guests and speakers,  

Ladies and Gentlemen,

Good morning

1.      Thank you  for the invitation to the Fourth Financial Planning Conference organised by Berita Harian. 

Surveys show few are actively planning for retirement

2.      Not too long ago, a number of surveys were released, assessing how prepared Singaporeans are for retirement. The picture is less than perfect.  A financial literacy survey[1] last year by MoneySENSE, the national financial education programme spearheaded by several government agencies, showed that few Singaporeans are actively planning for their retirement needs. Only 24% have actually calculated how much they would need at retirement. And only 28% know how much CPF funds they would have when they turn 55.

3.         As far as the Malay/Muslim community is concerned, Berita Harian's Ekoniaga Desk, or the economics, business and finance section of Berita Harian, did a survey last year. It revealed that although 74% of Malays here do have some form of regular savings, only 24% of them save for their retirement needs.

4.      Generally, the reasons cited by Singaporeans are: there is still time, financial planning is not necessary, too busy to get down to it, or just not knowing how to start financial planning. 

Personal responsibility vital for financial planning and retirement

5.       Yet, some of these surveys also reveal heartening results. For example, a HSBC “Future of Retirement” Survey[2] showed that the majority of Singaporeans believe it is their own responsibility to fund their retirement, more so than their peers globally.  Consequently, the next step is to take personal responsibility to enhance our own financial literacy and to get started on financial planning for those of us who have not already done so. For those who do not know how or where to begin, this financial education conference by Berita Harian is most apt.

BH’s commendable financial education efforts

6.       I applaud Berita Harian for your untiring efforts to raise the financial literacy of Singaporeans, in particular your readers, the Malay reading public. Berita Harian has been supporting MoneySENSE since its launch in 2003. I understand that Berita Minggu, also publishes articles on financial education – loans, investments and insurance – fortnightly. This Berita Harian Financial Planning Conference, which is into its fourth successful year, is part of BH’s ongoing efforts to enhance the community’s knowledge and awareness of financial planning and products available.

Financial planning worthwhile at any age

7.  While it is true that the younger you start, the more beneficial the process will be, financial planning needs to be kept up through one’s life cycle. Although younger people may have more early decisions to make regarding their financial lives, changing circumstances may also require middle-aged people and seniors to adjust their financial plans as well. For example, changing economic conditions may lead some people to revisit some of their investments or estate plans. Having adequate supplementary income and disability planning also becomes important as we age.

Employment in one’s golden years

8. With rising life expectancy, a Singaporean at age 62 can expect to live for another fifteen to twenty years. A greying Singapore also means a change in the way we support ourselves. The same HSBC survey interestingly found that 58% of working Singaporeans would like to spend their retirement years involved in other kinds of work. Most of them would like to spend their later years going back and forth between leisure and work.  In other words, they would like to continue with some form of employment, maybe something a little less taxing, but work nonetheless.

9. Besides supplementing their income, work allows an older person to remain active and in touch with society. It can offer immense fulfillment and personal satisfaction. Older people with their wisdom and valuable experience are also an important resource. For example, older and more experienced people who continue in the workforce can coach and guide their younger colleagues. Indeed, seniors who are active, engaged and confident about their abilities generally feel better and live longer too as the body and mind is kept healthy.

10.  As we live longer and have more seniors aged 80 years old and above, undeniably, healthcare and medical costs will be one of the concerns for many of us. Hence, I note that the theme for this conference “Protect & Grow” seeks to address these issues more closely.  I am told that speakers of this conference will cover topics such as making sense of different financial and insurance products, including Medisave, Medishield, and Medisave Plus.  These are certainly some of the key areas we should all be aware of in planning for our needs, regardless of our age or background.

11. Couples, for instance, need to be open, honest and pro-active about their financial status, whether they are preparing to walk down the aisle, just getting back from their honeymoon, or preparing for their children’s education. Similarly, whether you are single, or dealing with divorce or death of a spouse, financial management and planning remain critical.

12. Another key focus of this conference is Islamic financial planning and investment.  Today, Muslims – and non-Muslims – have access to Syariah-compliant investments and insurance products, although these are relatively new to Singapore. The range of Syariah-compliant products offered in Singapore varies from unit trusts, deposits to insurance.  With growing interest in Islamic banking and financial services and Singapore being an international financial centre, the Islamic financial market here has the potential to blossom further. Indeed, this is a good opportunity for financial institutions to introduce more Islamic financial products for their customers. 

Conclusion

13. All of us, no matter what our background or job, need to set our financial goals and map out how we intend to achieve them.  The earlier we start, as individuals and as families, the easier it is to achieve our financial goals. With prudent financial planning and saving, and working for as long as we can and enjoying it,  we will be able to achieve a brighter and more secure future for ourselves.  This is what we mean by successful and active ageing for Singapore.

14.   In closing, let me thank Berita Harian and its partners for putting together this timely conference.  I wish all of you a fruitful and enlightening session.

Thank you.