What the expert says

PHOTO: What the expert says

Financial planning should begin in the early stages of one's career, to ensure sufficient coverage for life after retirement.

Ms Agnes Lim, a financial planner at Manulife Singapore, offers advice for Ms Adeline Khoo.


Ms Khoo deserves compliments for cultivating a good saving habit, as well as her early planning for retirement, as most Singaporeans consider retirement planning only at a later age.

We advocate that young Singaporeans start retirement planning when they start earning an income, so that they can benefit from a long-term compounding effect, as shown in the time value of money.


For young people like Ms Khoo, we recommend a regular-premium investment-linked policy (ILP), which, for as little as $100 per month, one can start saving and investing on a regular basis to facilitate the achievement of their financial goals. An ILP offers much flexibility on withdrawal, and top-up options.

Should she need money for her marriage, she can withdraw her investment partially. She can also boost her investments through ad-hoc top-ups whenever she has the spare cash to do so.

While investing, an ILP provides life protection. She can change her insurance protection to meet her changing priorities while still paying the same regular premium.


First of all, Ms Khoo needs to ensure she has sufficient health-care coverage for hospitalisation and medical expenses as a result of critical illnesses.

It will be good if she could enhance medical coverage with an advance payout on critical illnesses that are in the early stages.

Our ManuCompleteCare provides care right from the beginning. It pays the basic sum insured in the event that the life insured is diagnosed as suffering from any one of the covered Comprehensive Critical illnesses, which include illnesses that are in the early stages.

The plan also pays out additional 100 per cent of the basic sum insured, should the life insured suffer from any of the nine illnesses listed, including leukaemia, Parkinson's disease and bone cancer.

Ms Khoo should also look into obtaining comprehensive accident and hospitalisation protection, so that should unforeseen events occur, she will be well covered.

Manulife's Accident and Hospitalisation programme covers illnesses like dengue fever and pays out cash daily, should the life insured be warded.


Ms Khoo will find it less financially taxing when she completes her studies, and she could accumulate more savings after her graduation.

As her career progresses, she can also consider lump-sum investments to build up her portfolios.

For more information on retirement solutions, visit www.manulife.com.sg or call 6833-8188.

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