There is a couple, retired teachers and without children. There were quite well-off and lived in a private house. Not too long ago, they lent their savings to a trusted relative to do or to start a business. They even mortgaged their house to raise the money.
I do not know if the relative promised them good returns or any other thing. The business failed and the bank took over the house. The couple now live in a rented HDB flat.
One fortunate thing for the couple though - they are pensioners. They did not convert from the Pension scheme to the CPF scheme when they were given the opportunity to do so. So now they are getting monthly pensions from the Government. Not much I think but at least they don't have to worry about three meals unless the Government goes bankrupt.
But it is quite a big change for them - from a big house to a small one, from spending freely to counting every dollar, from taking taxis to taking buses ..... And it happened when they thought they could take things easy in their golden years. Sad, right?
I think you must keep some money yourself. Unless there are exceptional circumstances, do not lent all your money away.