Live well, longer: How to fund the life you want at every age

Singaporeans are living longer than ever, with

life expectancy now approaching 84 years

. But longevity brings a new challenge: staying healthy, active and engaged for what could be two or even three decades beyond one’s working years.

Life after work has evolved dramatically. It is not simply about winding down, but learning new skills, travelling and contributing to their communities. Beyond good health, sustaining this lifestyle requires financial flexibility.

Says Ms Toni Fung, chief customer and marketing officer of Prudential Singapore: “It’s about having choices, not just covering costs. Having financial flexibility means you can prioritise your well-being, pursue your interests and maintain social connections. These are factors that contribute to successful ageing.”

Yet many Singaporeans are not positioned to age this way. A

2023 study by the Singapore Management University’s Centre for Research on Successful Ageing

found that only 34 per cent of “young seniors”, referring to those born in the 1960s and 1970s, rated their retirement preparedness as “good”. Another 27 per cent have no plan at all for their later years.

Beyond basic needs

The national longevity annuity scheme CPF LIFE provides monthly payouts in retirement. The question that many Singaporeans face is whether they will have enough for living well in their later years as spending patterns and healthcare needs evolve over time.

Prudential Singapore’s recently launched

PRUIndex Income Boost

and

PRUIndex Lifetime Income

can help to fill this gap.

“We designed these

solutions

around real-life needs, giving people the confidence that they have reliable supplementary income to cover both necessities and the things that bring meaning to their lives,” says Ms Fung.

PRUIndex Income Boost provides income up to a 15-year period¹, which can help people pursue new interests while they are still active and healthy.

Its capital guarantee at maturity² offers added peace of mind, while the supplementary income can help to bridge the period between leaving the workforce and the start of CPF LIFE payouts.

Meanwhile, PRUIndex Lifetime Income takes a longer view. With monthly payouts that continue for life and can even extend across generations, it addresses a fundamental anxiety of depleting savings in old age, when healthcare needs are greatest. The assurance of continued income, whether to age 85, 95 or beyond, can remove a significant source of stress.

Both solutions offer exposure to uncapped index-linked returns³ by tracking specific indices of your choice, while including downside protection. This structure aims to provide growth potential without the full risk of market volatility that becomes harder to recover from in later years.

Never too late to start

When it comes to investment or financial planning, the conventional wisdom is to start early to maximise the power of compound growth over decades. For those beginning this process later, the principle remains the same: compounding still works, just over a shorter timeframe.

But many Singaporeans spent their earlier working years balancing immediate priorities such as repaying student loans, buying a home, starting a family and supporting ageing parents. Now in their 40s and 50s, they often find themselves needing to accelerate their planning.

For a generation likely to live well into their 80s and beyond, taking action now remains meaningful.

Says Ms Fung: “People often think they have missed the boat if they have not been planning since their 20s or 30s, but that is not the case.

“Our solutions are designed to accommodate different starting points. Whether you are 45 or 55, there are still meaningful steps you can take to build financial flexibility for the years ahead.”

PRUIndex Income Boost and PRUIndex Lifetime Income provide cash payouts from the first month of enrolment^1,4. This allows individuals to start building their supplementary income stream immediately, rather than waiting years before seeing returns.

For those starting later, this immediacy can be particularly valuable in bridging income gaps or covering rising healthcare costs that often emerge in their 60s and 70s.

The practical implications can be significant. An extra few hundred dollars monthly might mean the difference between basic and more comprehensive healthcare coverage, or between staying home and maintaining an active social life.

In a rapidly greying society, the cost of further delays grows steeper with each passing year. Says Ms Fung: “The gap between those who start now and those who continue to wait will show up not just in their financial means, but in how the next 20 or 30 years of life actually unfold and the choices that remain available then.”

Learn more about how Prudential can support your journey to living and ageing well.

¹ PRUIndex Income Boost provides guaranteed monthly income in the first year only and non-guaranteed index-linked monthly income from the second year onwards.

² Capital is guaranteed upon maturity only if there is no policy alteration made throughout the policy term.

³ Subject to participation rate. The participation rate is not guaranteed, varies across different Indices, and is subject to the performance of the Par Fund.

⁴ PRUIndex Lifetime Income provides guaranteed monthly income for lifetime and additional non-guaranteed index-linked monthly income from the second year onwards.

Disclaimer:

This article is for your information only and does not consider your specific investment objectives, financial situation or needs. We recommend that you seek advice from a Prudential Financial Representative before making a commitment to purchase a policy.

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.

This policy is 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

websites.

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