Smart ways to generate investment income while staying protected in uncertain markets

From taking that career break to travel the world to pursuing a passion project, young Singaporeans are redefining what it means to live fully in the present.

And for many, they are not working longer hours or taking a second job to afford this lifestyle. Instead, it is about making their current savings work harder.

According to

Prudential Singapore’s SG60 Financial Future poll

conducted in July 2025, 46 per cent of young adults aged 29-44 are actively working to build multiple income streams while they remain employed. In particular, 56 per cent of them cite building passive income through investing as one of their top work goals, underscoring a clear desire to diversify income beyond salary alone.

Says Ms Toni Fung, chief customer and marketing officer of Prudential Singapore: “Young Singaporeans are not waiting for windfalls. They want reliable cashflow that supports everyday expenses while also helping them to fund meaningful life goals, whether that’s taking a sabbatical, making a down payment on a property, or having the financial confidence to start a family on their own timeline.”

Diversifying income without excessive risk

While side-hustles and gig work have surged in popularity, these require significant time and energy, which are commodities already in short supply for many working professionals.

This has led many to

explore income solutions

that can generate returns without having to constantly monitor the market or take high-risk market exposure. This is where

PRUIndex Income Boost

and

PRUIndex Lifetime Income

, the first-in-market index-linked participating insurance plans in the market, fit in.

Unlike aggressive growth investments that can swing wildly with market volatility, or traditional savings accounts that hardly keep pace with inflation, PRUIndex Income Boost and PRUIndex Lifetime Income occupy a middle ground designed for those who want to participate in market performance while being protected from losses.

PRUIndex Income Boost is designed to provide guaranteed monthly income in the first year, with uncapped index-linked returns¹ from the second year onwards. Importantly, capital is guaranteed at maturity in 15 years². For a 30-year-old professional, this means enjoying potential monthly payouts for 15 years before receiving a guaranteed maturity payout² at age 45 – which can come in handy for career pivots, mortgage payments or family planning at that time.

PRUIndex Lifetime Income works for a longer horizon, offering guaranteed lifelong monthly payouts that continue regardless of how long the policyholder lives, with uncapped index-linked returns¹ from the second year onwards. It also includes options for policyholders to transfer the policy to their family members, passing on the income stream to their loved ones. For younger Singaporeans, establishing lifetime income streams earlier helps to enhance their financial flexibility throughout all life stages.

Growth potential with downside protection

In a crowded investment landscape, these two solutions stand out by pairing the opportunity to gain higher returns through market participation with protection from market losses, setting them apart from fixed deposits or traditional dividend sources.

Both are linked to specific market indices – including the S&P 500 FC Index³, Barclays Shiller Allocator Index⁴ and UBS MASTR Index⁵ – giving policyholders the opportunity to benefit when markets perform well. They also protect against losses with a zero per cent floor rate. This means that even in a market downturn, the floor rate will protect your policy from negative performance.

More importantly, both solutions start providing payouts from the first month. This immediate cashflow component is particularly valuable for young investors who are managing competing priorities, such as paying for rent after moving out of their parents’ home, funding further education, or building an emergency fund while still investing for growth.

“These solutions are designed to make investing feel less daunting, especially in uncertain times. By combining market participation with built-in protection, they help consumers stay invested with greater confidence,” says Ms Fung.

Such offerings are particularly relevant for younger investors who have time on their side but may lack the experience and emotional fortitude to weather significant market uncertainty. PRUIndex Income Boost and PRUIndex Lifetime Income are also additional tools that investors can tap to make their money work harder.

With spending priorities shifting and career journeys becoming less linear, a single income may not always stretch easily across daily needs, lifestyle choices and longer-term plans. This has made diversified income sources an increasingly relevant part of financial planning.

“These solutions we’ve designed recognise that Singaporeans want to enjoy their lives now while also building for the future,” says Ms Fung.

“By providing a reliable stream of supplementary income, PRUIndex Income Boost and PRUIndex Lifetime Income contribute to the financial freedom necessary to pursue their passions and achieve their life goals without feeling like they’re sacrificing their present happiness.”

Learn more about how Prudential can support your journey towards financial freedom.

¹ Subject to participation rate. The participation rate is not guaranteed, varies across different Indices, and is subject to the performance of the Par Fund.

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

³ Refers to the S&P 500 FC TCA 0.50% Decrement Index (SGD) ER for the SGD plan and the S&P 500 FC TCA 0.50% Decrement Index (USD) ER for the USD plan.

⁴ Refers to the Shiller Barclays CAPE Allocator 6 Dynamic Risk Control (SGD) Index for the SGD plan and the Shiller Barclays CAPE Allocator 6 Dynamic Risk Control Index for the USD plan.

⁵ Refers to the UBS Multi Asset Strategy Tactical Rotation (SGD) Index for the SGD plan and the UBS Multi Asset Strategy Tactical Rotation Index for the USD plan.

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.