SUSS has set the GSP110 End-of-Course Assessment for the July 2026 semester against an imagined Singapore “poly-crisis”, where a Strait of Hormuz blockade pushes oil to US$150 and inflation climbs. Across four 25-mark questions you plan your own retirement at 67 using FV, i* and PVAD, size Leslie’s yearly annuity-due savings for a $400,000 down payment, advise a young couple choosing between Standard and Plus/Prime BTO flats, and analyse spending clusters and SRS withdrawals.

Question 1: Retirement Planning in a Poly-Crisis (25 marks)

You are developing your own retirement plan, aiming to retire at age 67 with income lasting until age 92. Inputs: your current age, required annual income in today’s dollars, general inflation rate and post-retirement investment return rate (your own inputs).

(a)

• (i) Present your retirement financial objective using the SMART criteria. Clearly state your Income Replacement Goal. (3 marks)
• (ii) Discuss the rationale for your chosen inflation and investment rates given the “poly-crisis” scenario. Explain how they combine to determine the Net Interest Rate (i*). (2 marks)

(b) Apply the correct quantitative methodologies to determine the total lump sum required at age 67. Show all formula structures.

• (i) Determine the Future Value (FV) of your annual income at age 67. (5 marks)
• (ii) Determine the Net Interest Rate (i*) for the withdrawal period. (5 marks)
• (iii) Employ the Present Value of Annuity Due (PVAD) formula to find the required lump sum. (5 marks)

(c)

• (i) Discuss the financial rationale for using the Annuity Due structure for retirement withdrawals. (2 marks)
• (ii) Discuss one factor that may necessitate a future revision of your plan, with a clear explanation. (3 marks)

Question 2: Saving for a Private Property (25 marks)

Leslie (32) wants to upgrade to a private property in 15 years with a cash down payment of $400,000. He has $50,000 in savings today, general inflation is 3.5% and his unit trust portfolio is expected to yield 7.5%.

• (a) Apply the quantitative method to determine the regular annual contribution Leslie must make at the beginning of each year to reach this goal. (15 marks)
• (b) Discuss two key features of a Unit Trust and explain why Leslie might choose this over individual stock picking during a crisis. (5 marks)
• (c) Outline the significance of the Investment-Asset-to-Net-Worth Ratio and define its formula. (5 marks)

Question 3: Buying a First HDB Flat (25 marks)

Andrew and Betty (29) are researching their first home under HDB’s Standard, Plus and Prime classification (Appendix 1) during the “poly-crisis”.

(a)

• (i) Financial experts caution against becoming “house-poor”. Discuss why. (3 marks)
• (ii) Discuss the significance of the Mortgage Servicing Ratio (MSR). (3 marks)
• (iii) Discuss how keeping it at 25% of gross income supports financial health and liquidity during an inflationary crisis. (4 marks)

• (b) Discuss how Andrew and Betty should resolve goal conflicts when choosing between a Plus/Prime flat (10-year MOP, higher subsidy) and a Standard flat (5-year MOP, higher flexibility), with analysis of opportunity costs and trade-offs. (9 marks)
• (c) Outline the key considerations and develop the first three steps of the Personal Risk Management Process (Determine Objectives, Gather Information, Analyse Information) for this couple facing “Liability Risk”. (6 marks)

Question 4: Planning Approach, Spending Behaviour and SRS (25 marks)

• (a) Discuss the three core characteristics of the Comprehensive Approach to financial planning. (9 marks)
• (b)(i) Based on the IPS-CNA Survey findings (Appendix 2), identify the financial attitudes of the “Short-term Spender” cluster. (2 marks)
• (b)(ii) Discuss two ways their spending behaviours and attitudes toward financial knowledge act as barriers to retirement readiness. (8 marks)
• (c) Identify and explain the rules on Supplementary Retirement Scheme (SRS) withdrawals and the specific tax benefit of spreading these withdrawals over 10 years. (6 marks)

Appendices Provided

• Appendix 1: CNA TODAY article (October 2025) on choosing a first home under HDB’s Standard, Plus and Prime framework
• Appendix 2: IPS-CNA survey findings on financial attitudes and retirement readiness