SINGAPORE : Community Development Minister Dr Vivian Balakrishnan says Singaporeans lack financial and investment knowledge.
And he says this is one area the Ministry will have to focus on - which a financial planning expert agrees.
Thousands of senior citizens and their families thronged the inaugural Silver Industry Exhibition.
Many came to check out innovative products and services that cater specially for the silver-haired.
Some also took opportunity to find out if they are 'retirement ready'.
Dr Balakrishnan, who opened the exhibition, says the huge turnout is a good sign that Singaporeans recognise that ageing is an important area worth paying attention to and investing in.
But retirement financial planning is one large area which he feels Singaporeans could brush up on.
He says: "The level of financial knowledge in Singapore is still inadequate. So I'm also glad that we also have several booths in this exhibition which will hopefully give more information to people so that they can make informed choices.
"Or if they don't have enough knowledge on their own at least they know where to go for help, who to ask, who to rely on for financial advice - so this is another large area which we in the Ministry will have to focus on - which is to increase the level of fiscal and financial understanding and knowledge in Singapore."
One expert in financial planning says Singaporeans need to make their CPF savings work harder by keeping a sensibly diversified portfolio of investments.
Arun Abey, Head of Strategy, AXA Asia Pacific Holdings, Australia, says: "The CPF scheme in Singapore has been a marvellous innovation and periodically it's been adapted and modified and those modifications are good. What Singaporeans need to understand is that they cannot simply rely on CPF.
"Nor should they be looking to the government to bail them out. We need to take more personal responsibility for the quality of our retirement - so we need to supplement CPF savings one, and secondly, we need to make our CPF savings and other sources of savings work much harder."
Mr Arun says if Singaporeans could capture from their CPF savings an additional 5 percent return - over and above the inflation rate, when compounded over a working lifetime, even an average worker could be a million dollars richer at retirement!
He adds: "An extra million dollars in their retirement fund. That makes a lot of difference - just an extra 5 percent by investing in a globally-diversified portfolio shares, rather than keep it in cash. That's what we need to learn!"
The key is to start early, plan long term, and invest more in equities but Singaporeans tend to be risk-averse.
So learning how to invest smartly, is what makes the difference between a million-dollar retirement, and one spent worrying about funding the golden years. - CNA/ch
Source.
And he says this is one area the Ministry will have to focus on - which a financial planning expert agrees.
Thousands of senior citizens and their families thronged the inaugural Silver Industry Exhibition.
Many came to check out innovative products and services that cater specially for the silver-haired.
Some also took opportunity to find out if they are 'retirement ready'.
Dr Balakrishnan, who opened the exhibition, says the huge turnout is a good sign that Singaporeans recognise that ageing is an important area worth paying attention to and investing in.
But retirement financial planning is one large area which he feels Singaporeans could brush up on.
He says: "The level of financial knowledge in Singapore is still inadequate. So I'm also glad that we also have several booths in this exhibition which will hopefully give more information to people so that they can make informed choices.
"Or if they don't have enough knowledge on their own at least they know where to go for help, who to ask, who to rely on for financial advice - so this is another large area which we in the Ministry will have to focus on - which is to increase the level of fiscal and financial understanding and knowledge in Singapore."
One expert in financial planning says Singaporeans need to make their CPF savings work harder by keeping a sensibly diversified portfolio of investments.
Arun Abey, Head of Strategy, AXA Asia Pacific Holdings, Australia, says: "The CPF scheme in Singapore has been a marvellous innovation and periodically it's been adapted and modified and those modifications are good. What Singaporeans need to understand is that they cannot simply rely on CPF.
"Nor should they be looking to the government to bail them out. We need to take more personal responsibility for the quality of our retirement - so we need to supplement CPF savings one, and secondly, we need to make our CPF savings and other sources of savings work much harder."
Mr Arun says if Singaporeans could capture from their CPF savings an additional 5 percent return - over and above the inflation rate, when compounded over a working lifetime, even an average worker could be a million dollars richer at retirement!
He adds: "An extra million dollars in their retirement fund. That makes a lot of difference - just an extra 5 percent by investing in a globally-diversified portfolio shares, rather than keep it in cash. That's what we need to learn!"
The key is to start early, plan long term, and invest more in equities but Singaporeans tend to be risk-averse.
So learning how to invest smartly, is what makes the difference between a million-dollar retirement, and one spent worrying about funding the golden years. - CNA/ch
Source.
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