Foundation
Cash for emergencies, cover for the worst, CPF and safe income.
Curated by the MAS-licensed financial planners on the Sum team.
Emergency fund
3 to 6 months of spending
Three to six months of spending in cash you can reach within a day, or six and more when income varies. Retirees often keep one to two years, so they never have to sell investments in a bad year.
SDIC insures up to S$100,000 per depositor at each bank.
Hospital cover
MediShield Life covers every citizen and PR for large hospital bills in B2 and C wards. An Integrated Shield Plan adds cover for A wards and private hospitals.
Premiums can be paid from MediSave, up to a yearly limit.
Life and illness cover
Cover for death and total disability of about 9 times yearly income, and for critical illness of about 4 times. Premiums of no more than 15% of take-home pay.
MoneySense, Basic Financial Planning Guide.
Long-term care
S$689 a month for life, for a 2026 claim
CareShield Life pays S$689 a month for life to someone who becomes severely disabled in 2026, more for later claims. Most citizens and PRs born in 1980 or later are covered automatically.
CPF
The base of most Singaporeans' retirement. The Ordinary Account earns at least 2.5% a year, the Special, MediSave and Retirement Accounts at least 4%. CPF LIFE then pays a monthly income for life from 65.
Full Retirement Sum for those turning 55 in 2026: S$220,400.
Safe income
Singapore Savings Bonds, Treasury bills and fixed deposits hold money needed within a few years. Savings Bonds are backed by the government and can be cashed in any month with no penalty.
Costly debt
27% a year on card balances
Credit card balances cost about 27% a year. Paying cards in full each month, and the costliest debt first, comes before investing.