With Singaporeans expected to lead longer and healthier lives, there is an opportunity for many to live differently in their retirement years.

Indeed, millennials in the prime of your careers today will be planning for a retirement that is very different from your parents.

This could mean travelling to far-flung locations to immerse yourselves into a new culture, or turning a life-long passion into a full-time enterprise that not only turns a profit, but also makes a positive impact on the community.

Simply put, retirement for millennials is not really about slowing down and taking a backseat in life. Neither does it have to start strictly after the official retirement age of 65; it can begin anytime you are ready. If anything, retirement simply represents a step forward into a new exciting chapter of your lives.

But to do so, you will need to be healthy to engage in these pursuits, while ensuring sufficient income to maintain your current standard of living or pursue your dreams.

While there are many ways to build up your income and take care of your health, one solution that Prudential launched recently is PRUVantage RetireCare.

This investment-linked policy is structured to empower you to supplement your medical expenses¹ during retirement while investing to grow your retirement nest – so that you can enjoy your golden years with an uninterrupted income stream.

To get you inspired and thinking about your later years now, here are some ways you may want to do retirement differently. 

Living longer and living well

Millennials place a higher priority on health and wellness, a trend accelerated by the Covid-19 pandemic.

A Deloitte Global 2021 Millennial and Gen Z Survey asked 14,600 respondents to identify their top three personal concerns.

Some 28 per cent of them cited healthcare and disease prevention as their top concern in 2021, pipping worries about climate change and environmental issues, which ranked first the year before.

Against this backdrop, millennials are not only looking for ways to increase lifespan, but also improve healthspan – defined as how long people live in good health without disabling illnesses or injuries.

An enhanced healthspan enables you to experience a more positive retirement.

While age-old health-related advice such as consuming plenty of water and getting adequate sleep and regular exercise still hold, millennials are likely to stay in good shape in more novel and exciting ways.

From weighted hula hooping and trapeze classes to ZUU – a form of high intensity interval training built around animal moves like the hopping motion of a frog – you are working up a sweat with routines very much different from your parents. Besides the calorie burn, the fun factor is a key consideration too.

Beyond the physical, you are also focused on your mental well-being. To this end, you are working to maintain healthy, supportive relationships that have a positive effect on your healthspan.

You have likely also overcome the stigma associated with seeking professional help for mental health that previous generations held.

That said, as you age, your body will inevitably experience more wear and tear. This will result in increased medical expenses exacerbated by rising medical costs in the future.

Furthermore, the extra layer of protection from the employer’s health cover will no longer be valid with retirement.

This only stresses the importance of a comprehensive health insurance policy and planning for out-of-pocket expenses that may not be covered, so that you can enjoy your later years without much worries.

The good thing is, younger Singaporeans have become more proactive about their health and well-being, and are looking for solutions that provide more than just hospitalisation treatment. Preventive care and recovering well are just as important.

Seeing the world on your terms

When it comes to travelling, millennials tend to be more keen on searching out authentic experiences and shareable adventures, as opposed to merely ticking off a checklist of “must-visit” tourist attractions.

You can unplug from your digital devices and attend a “mindcation” retreat in Bhutan, take a cooking class in Aix-en-Provence, France or even embark on a journey to the International Space Station and beyond.

While you might have taken sabbaticals during your working life to travel and immerse yourself in different experiences, travelling after retirement affords you the time to live like a local, without thinking about the upcoming business pitch.

Remember your last trip to Sicily, Italy, for instance? You enjoyed the beautiful architecture of the Teatro Massimo opera house and the Cattedrale di Palermo as well as explored the busy streets of Via Maqueda.

But after retirement, why not stay in the beautiful Italian town for a longer period of time – or even retire there? You might just discover a different and even more beautiful side to it.

Think savouring a cup of granita al caffe con panna (shaved coffee ice with whipped cream) at the cafe while people-watching, or basking in the sun on the sandy beach of Mondello before taking a dip in its crystalline waters.

These will enable you to deeply experience the traditions there and be able to lead the lifestyle of a true local compared to that of a tourist.

For such trips to materialise, you can start planning your trips now by creating a bucket list of desired travel experiences. Planning early will also give you an idea of the funds you will need to realise your wanderlust dreams.

This way, you have a financial target to work towards, and an investment-linked policy can make for a convenient tool to achieve it. By starting the policy early, you will have a longer and potentially smoother runway to build the financial capital you need.

Starting a business to make an impact

Many millennials could be keen to turn a side hustle or long-held idea into a for-profit enterprise.

These are likely to be businesses that have a positive social impact on the communities you operate in, or in cutting-edge sectors to leverage your digital savvy.

Perhaps it’s starting a mental health-centric shared working space with an in-house team of counsellors and psychiatrists, or even a sustainable food-based zi char delivery service. The possibilities are only limited by one’s passion and imagination.

What’s interesting is that this crossover to entrepreneurship can take place before or after retirement. Perhaps you have had a successful career and desire to be your own boss, or this business is just a lifelong passion of yours.

Having said that, starting a new business comes with its challenges. Navigating the business world is never easy, let alone someone with zero or minimal entrepreneurial experience.

First-time bosses should speak to experts, whether it’s a small-business consultant or a financial advisor, to navigate your way around.

Hence, it is advisable to ensure that you have sufficient income to support you while you build a successful business from scratch. A good practice is to start planning early, begin building the financial capital while you’re still working, and investing to grow it.

This way, you get to pursue your dreams yet your plans for your golden years stay secure without you having to worry about diminishing the retirement funds.

Enjoying fuss-free golden years

To help millennials fully realise your retirement goals, Prudential offers a suite of solutions that supports your ageing needs while growing your wealth.

Case in point: The aforementioned PRUVantage RetireCare. It’s a unique  investment-linked retirement plan that not only allows you to accumulate your wealth with flexibility but secures your retirement nest from being diminished by medical exigencies and out-of-pocket expenses.

You can choose a premium payment term of five, 10 or 15 years as well as your preferred retirement age of 55, 60 or 65. Upon reaching the chosen retirement age, you’ll be able to receive an uninterrupted monthly² income to suit your lifestyle needs.

Besides providing you with a stream of retirement income, PRUVantage RetireCare also ensures your medical needs are taken care of. It comes with a first-in-market Care Fund¹that pays cash benefits for selected medical expenses such as hospitalisation, surgery, recovery and cancer drug treatment up to a period of 10 or 20 years during retirement.

Furthermore, the cash benefits are paid out on top of your desired monthly income, helping you to focus on your recovery as your retirement income remains unaffected.

There is also the option for you to increase the target retirement monthly income by up to five per cent per annum² to keep pace with inflation. This way, you’ll not have to worry about the economy or rising inflation rates and continue to lead the lifestyle you desire.

The policy also boasts flexibility: You can always adjust the retirement age³, monthly income and coverage as you need. Make withdrawals and top-ups⁴  anytime to keep up with your wants and needs as they evolve.

The policy further accelerates wealth accumulation with bonuses throughout the policy term. With simplified administrative charges⁵, you can invest all your premiums from the get-go and receive additional units throughout the policy term as bonuses⁶. These include the welcome⁶ and retirement⁶ bonuses, as well as the loyalty⁶ bonuses.

Simply put, PRUVantage RetireCare can take care of your health and wealth, so that you can enjoy your later years worry-free and uninterrupted. So why not?

You can now enjoy a welcome bonus and rewards worth up to 45 per cent of the first-year premium. Terms and conditions apply. Click here for more information. Sign up today.

Footnotes:

¹Policy year limit of 5% of Basic Sum Assured or $25,000 whichever is lower on a per life basis applies. Benefit applies to treatment and admission in Singapore Hospitals only. Refer to product summary for the full list of eligible medically necessary claims. 

²Drawdown from Initial Investment Account, payable until the account value reaches zero. It is non-guaranteed and will depend on the underlying PRULink Fund(s) performance. If the account value falls to zero, the policy will lapse and the accompanying benefits such as Care Fund, Death and Terminal Illness will be terminated. 

³Adjustment of retirement age can only be made after premium term from a range of age 55 to 65 subjected to policy terms and conditions. 

⁴Minimum top-up of $1,000 to the Additional Investment Account and 3% premium charge applies. 

⁵Charged monthly on latest Initial Investment Account value. Payment period varies between 8-15 years and is dependent on the chosen premium term.  

⁶Welcome bonus, loyalty bonus and retirement bonus are paid in the form of units as a percentage of first year premium, Initial Investment Account Value and Sum Assured respectively.

Important Notes:

You are recommended to read the product summary and seek advice from a qualified Prudential Financial Consultant for a financial analysis before purchasing a policy suitable to meet your needs.

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid.

PRUVantage RetireCare is an Investment-Linked Plan (ILP) which invests ILP sub-fund(s). Investment products are subject to investment risks including the possible loss of the principal amount invested. The performance of the ILP sub-fund(s) is not guaranteed and the value of the units and the income accruing to the units (if any) may fall or rise. Past performance is not necessarily indicative of future performance.

A product summary and product highlights sheet(s) relating to the ILP sub-fund(s) are available and may be obtained from your Prudential Financial Consultant. A potential investor should read the product summary and product highlights sheet(s) before deciding whether to subscribe for units in the ILP sub-fund(s).

Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. Premiums for the supplementary benefits are not guaranteed and may be adjusted based on future claims experience.

This article is for reference only and is not a contract of insurance. Please refer to the exact terms and conditions, specific details and exclusions applicable to these insurance products in the policy documents that can be obtained from your Prudential Financial Consultant.

This article is for distribution in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore.

These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA/LIA or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).

Information is correct as at 10 March 2022.

This advertisement has not been reviewed by the Monetary Authority of Singapore.