Top 5 finance rules for smart singles

Here are 5 ways on how you can make the most out of your independence.

For most people, Singlehood is an iconic period of excess and enjoyment. However, due to circumstance and personal habits, it can also be a period when you accumulate debts, make financial mistakes or neglect saving for the future.

As a single person, how can you make good use of your independence and opportunities to take care of all your financial needs, both current and in the future?

Let's try to keep it simple. Here are the top FIVE things that all smart singles need to have in place: 

1. Liquid savings

This means cashflow (read: money in the bank). Which means money saved on a regular basis and put away in an account that you won't access for spending. Budgeting is a key driver of your success here – as all your regular expenses are borne by you, you'd want to manage them with discipline to avoid overspending.

You should also have a liquid emergency fund set aside, as you won't have your spouse or partner's income to fall back on, should there be a crisis that requires money or if you suddenly lose your income. 

2. Life Insurance

While you may not have a spouse or children who are financially dependent on you, you may still wish to purchase a small amount of death cover, to ensure you’re not passing on your outstanding loans and debts, such as credit card bills, on to your elderly parents or other family members. 

3. Health insurance

It’s easy to think of yourself as invincible when youth is on your side but health insurance is best purchased when you're still young and healthy to enjoy full coverage. In Singapore, MediShield provides basic medical coverage for hospitalisation and surgery expenses. You can also purchase Integrated Shield plans from private insurers such as Aviva for higher coverage. The premiums for Integrated Shield plans are payable from Medisave.

You should take note that Shield plans come with deductible and co-insurance. Deductible – or excess – is the initial amount you need to pay before the medical cost is covered by your insurance plan. Co-insurance is the percentage of the bill you need to pay to co-share the bill with the insurer, usually 10%. You'll need to ensure you have enough liquid savings to take care of the deductible and co-insurance, in the event of a medical emergency. Alternatively, you can weigh the potential out-of-pocket costs against the premium and consider purchasing a rider from your insurer that covers the co-insurance and/or deductible. 

4. Retirement planning

While your twilight years might seem ages away, it's best to start this early on, so that your money has time to grow. There are various vehicles available in the market to cater to different time horizons and risk profiles. You should sit down with a professional adviser to help you diversify and map out a good mix of accumulation tools to achieve your retirement goal.

As you get closer to your retirement age, you should focus on capital preservation as there's less time to rebound from large losses – plans such as Aviva's MyRetirement or MyIncomePlus that offers guaranteed capital and guaranteed returns¹ may be suitable. 

5. Protection needs

No one likes to think about accidents but the most immediate and relevant aspect of having protection plan is to focus on living benefits. As the name implies, living benefits refer to payouts while you're alive, to give you financial protection against a variety of scenarios such as hospitalisation, major illnesses, disability, and so on.

Because you're the one and only source of income, it's all the more important to protect your income. Income protection plans in the market typically allow you to purchase coverage for up to 75% of your current salary. The benefit kicks in when you’re not able to work due to illness or disability, to provide an income replacement, so you can continue paying the bills and daily expenses.

If you are 40 and above, you should also consider long term care plans. Long term care is often costly and for a prolonged period of time. Yet, protection against the cost of long term care is often overlooked. ElderShield was designed and launched by the Ministry of Health in 2002 to provide an affordable severe disability scheme. All Singaporeans and PRs are automatically covered when they turn 40 unless they choose to opt-out. The scheme is designed to provide monthly cash payouts to help with the costs of long-term care in the event of disability. You can also increase the payout amount and payout duration with ElderShield-approved supplements, such as Aviva's MyCare and MyCare Plus

¹Capital is guaranteed at the selected Retirement Age, and returns are guaranteed only upon policy maturity

Need help with your finances?

Leave us your details and we'll be in touch.

Thank you for your submission. 

Please enable javascript on your internet browser in order to use this form

By clicking "Submit", you consent to Aviva and Aviva related companies contacting you to provide you with information concerning Aviva and Aviva related companies' products and services. You also consent to Aviva using, disclosing or transferring your personal data in this form to Aviva related companies, third party providers or intermediaries, whether located in Singapore or elsewhere, for the above purposes and for research, audit, regulatory and compliance purposes.

For details of Aviva's Data Protection Policy, please refer to To withdraw your consent at any time, please call Aviva at +65 6827 7988.

Hungry for more news, views and tips on building a financially secure future?

Subscribe to us to receive monthly newsletter with useful tips and guides on insurance and special offers of products and services

Thank you for your submission. 

Please enable javascript on your internet browser in order to use this form

By clicking “Submit”, you consent to Aviva and Aviva related companies contacting you to provide you with information concerning Aviva and Aviva related companies’ products and services and special offers which may be of interest to you. For details of Aviva’s Data Protection Policy, please refer to To withdraw your consent at any time, please call Aviva at +65 6827 7988. 

Important Information

Money Banter (the "Portal") is for general information only and does not take into account the specific investment objectives, financial situation, health condition and needs of any particular person. The contents of this Portal are intended merely for educational purposes and should not be construed as the giving of advice or the making of a recommendation. Nothing contained in this Portal shall constitute a distribution, an offer to sell or the solicitation of an offer to buy. We recommend that you discuss any specific matters with your financial adviser representative or legal adviser before making any decision. You are responsible for your own medical care, treatment and oversight, and any health-related content on this Portal, including, text, treatments, dosages, outcomes, charts, profiles, graphics, images, messages and forum postings are strictly information to promote general understanding of certain health topics only, do not constitute the providing of medical advice, and should not be relied upon as a substitute for professional medical advice, diagnosis or treatment. Always seek advice from a physician or other qualified health care provider regarding your medical condition or treatment and before undertaking a new health care regimen. This Portal may include information sourced from third parties and links to third party websites. We are not responsible for the accuracy or completeness of, and do not recommend or endorse such information or third party websites nor recommend or endorse any specific tests, physicians, products, procedures, opinions or other information. While we have taken reasonable care to ensure that the information on this Portal has been obtained from reliable sources and is correct at time of publishing, information may become outdated and opinions may change. Except to the extent prohibited by any law, we are not liable for any loss (including direct, indirect and consequential loss, loss of profits, loss or corruption of data or economic loss of any kind) that may result from the access or use of or reliance on the information on this Portal.  | Terms of Use | Privacy Policy

Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore.