SPEECH BY DR KOH POH KOON, MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY, AT THE INSURANCE AND FINANCIAL PRACTITIONERS ASSOCIATION OF SINGAPORE (IFPAS) AND SINGAPORE COLLEGE OF INSURANCE (SCI) FINANCIAL PLANNING CONFERENCE, ON MONDAY, 9 JANUARY 2017, 9.00AM, AT THE AUDITORIUM, HDB HUB CONVENTION CENTRE

Mr Roland Yeo
President, Insurance and Financial Practitioners Association of Singapore (IFPAS)

Ms Karine Kam, Chief Executive, Singapore College of Insurance (SCI)

Distinguished Guests

Ladies and Gentlemen

2 Today’s conference on Retirement Planning is a timely one. We are aware that ageing is a key demographic shift impacting societies around the world. Singapore is no exception. In the last decade, there are more elderly and fewer younger people in Singapore’s resident population. If we look beyond the region, all across Asia, the number of people aged 65 and above is expected to grow significantly over the next 50 years[1]. By 2030, 1 in 4 Singaporeans will be aged 65 and above, a significant increase from 1 in 8 today.

3 The ageing population is a worrying sign and some has termed it the ‘Silver Tsunami’. However, longevity can present itself as a positive force for economic and social development. With a good socio-economic system in place for seniors to age gracefully, they can contribute their knowledge and skills, and achieve their full potential over longer lives. As our industries automate and transform from being labour-intensive to being more knowledge and skills-based, age and experience will be even more of an asset.

4 For Singapore, the good news is that we are not just living longer, but also healthier. Singapore’s healthy life expectancy (HALE), which provides an estimate of the average number of years lived in good health, has increased from 65.8 years in 1990 to 72.3 years in 2015 for males, and from 69 years to 75 years for females[2].  What this means is that Singaporeans can choose to work longer and have more to save for retirement needs.

5 At various phases of our life, we make different financial decisions, including housing choices, risk management and retirement income. Hence, it is important to look at lifecycle financial planning to achieve our retirement income goals. In this respect, the insurance and financial industry are our valued partners to help raise awareness on financial prudence and early retirement planning so that we can make the most of our afteryears. For example, IFPAS and SCI can help Singaporeans navigate the CPF system and other Government schemes that support retirement needs such as the Supplementary Retirement Scheme (SRS) and MediShield Life.

6 The Government is also providing comprehensive support to enable Singaporeans to make the most of their longer, healthier years. We have continuously improved the CPF system to help Singaporeans meet their basic retirement needs, and stepped up efforts to help Singaporeans understand the CPF system and make informed choices.

7 To further provide greater support for our seniors of tomorrow, the Government has launched the Action Plan for Successful Ageing last year. This Action Plan includes more than 70 initiatives covering over 12 areas from health and wellness, employment to transport and housing. It is our hope that seniors will have opportunities to continue working, learning and growing as they age gracefully and confidently in Singapore.

8 To enhance support for businesses, we are also working with industry partners to transform our industries for the next phase of our economic development. Together, we are developing industry transformation maps (ITMs) that lay out the growth and transformation strategies for 23 industries over the next five years. With the ITMs, people, including mature workers, can look forward to new and redesigned jobs with better wages. As we upgrade our businesses, the type of jobs that they offer will be different. Rank-and-file jobs will require more skills, while new professional roles will emerge. There are many programmes in place that will allow employees to acquire new competencies, skillsets and knowledge to enlarge their job functions and move into new higher value-added jobs as our industries transform and renew.

9 In closing, I would like to thank the organisers, IFPAS and SCI, for their role in building capabilities and helping their members to enhance their knowledge and skills to meet the future needs of the industry. A conference like this is a good platform to improve and take the industry forward as well as help it remain relevant. I hope that IFPAS, SCI and its members will keep up the good work of helping Singaporeans plan for their financial needs, and continue to work with the Government to improve the financial well-being of Singaporeans. I wish all of you a fruitful and enriching conference. Thank you.