Why building income earlier lets you live well now, not just after retirement
Early financial planning allows you to pursue your life goals with confidence, says Prudential Singapore.
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Singaporeans are living longer. Many now spend 30 to 40 years beyond their peak earning years, entering what some call a “second adulthood”. These years can be filled with possibilities: travelling, supporting children studying overseas, pursuing fractional work before retiring fully or caring for ageing parents.
A longer life, however, also means a longer financial runway. For many households, this calls for income that lasts. To support these evolving life stages and help customers generate income, Prudential Singapore has introduced two index‑linked solutions – PruIndex Income Boost and PruIndex Lifetime Income.
PROVIDING FOR YOUR FAMILY WHILE REDESIGNING YOUR LIFE
Picture this: At 48, David* is juggling several major responsibilities. His two children are approaching university age while his ageing parents need caregiving support.
He wants to plan early for a different rhythm of life. That could mean retiring sooner from a demanding job, spending a year travelling or setting aside more time for family and personal interests.
To prepare for these milestones, David needs an income source that starts early, grows over time and supports his finances as his commitments evolve.
An option he can consider is PruIndex Income Boost – a Singapore-dollar regular premium participating endowment plan that taps into index growth¹ to generate income while safeguarding savings.
The plan pays guaranteed monthly cash benefits of 2.3 per cent per annum² from the first to the 12th month, giving him some immediate breathing room. From the 13th month onwards, he has the potential to receive market-performance-linked payouts¹, allowing income to grow when markets perform well. A non-guaranteed maturity bonus is payable when the policy ends.
Savings are protected through market shifts, with a 0.0 per cent floor rate and capital guaranteed after 15 years, provided no policy changes are made during the term.
David can choose premium terms of five or 10 years, which helps him align payments with his financial commitments. He may also switch indices3 if his investment approach changes. Furthermore, the policy includes death protection, for the benefit of his loved ones.
With PruIndex Income Boost, David can focus on present responsibilities while planning for the years ahead.
BUILDING A LEGACY THAT OUTLIVES YOU
Jasmine*, a 55-year-old lawyer, is also planning ahead. With her son preparing to study overseas, she wants to build a legacy that supports him well beyond her lifetime. She does not intend to retire soon, but hopes for her later years to be defined by choice rather than uncertainty.
PruIndex Lifetime Income is structured to provide income for life. It offers Jasmine a steady stream of income that supports long-term stability, helps cushion against market volatility and can be passed on to her son.
PruIndex Lifetime Income is a Singapore- and US-dollar regular premium whole life participating plan that provides guaranteed income for life, with the potential for higher payouts linked to index performance1.
Jasmine receives guaranteed monthly cash benefits of 0.50 per cent per annum2 for life. From the 13th month onwards, she may also receive market‑linked payouts1.
The plan shields her savings from market downturns with a 0.0 per cent floor rate and allows her to choose premium terms of five, seven, 10 or 15 years. She has the flexibility of switching indices3 if her investment strategy evolves.
The plan also supports multigenerational wealth planning through Wealth Share features. These include the option to appoint a secondary life assured4 and to change the life assured5. Death protection is included.
For Jasmine, lifelong income provides greater certainty as she plans her next chapter. At the same time, it ensures the legacy she builds today continues to support her family in the years ahead.
Customers like David and Jasmine can choose from three indices: the UBS Multi Asset Strategy Tactical Rotation Index6, which is diversified across global equities, bonds and commodities; the S&P 500 FC Index7, which offers optimised exposure to large-cap US equities with built-in volatility control; and the Shiller Barclays CAPE (cyclically adjusted price-to-earnings) Allocator Index8, which offers access to diversified US sectors and US treasuries.
INCOME AS A FOUNDATION FOR FLEXIBILITY
David and Jasmine may be at different life stages, but they face common realities. Many Singaporeans today are balancing support for loved ones with the need to build a financial foundation strong enough to carry them into the future.
“In a world of longer lives and evolving priorities, early planning gives people the confidence to say yes to important milestones today while ensuring their financial foundation remains secure for the years ahead,” said Ms Toni Fung, chief customer and marketing officer at Prudential Singapore. “A new income stream shapes how freely people move, plan and dream. It helps support the moments that matter now while safeguarding the future.”
She added: “Similarly, lifetime income offers enduring financial support beyond the individual, helping not only oneself but also a spouse, children or ageing parents.”
With markets shifting quickly, many Singaporeans are seeking income sources that can participate in market growth, offer some protection against downturns, complement investment portfolios and provide dependable monthly income through different life stages.
Living well does not have to wait for retirement. With early planning, it can begin much sooner.
Say yes to what matters today with income-generating solutions from Prudential.
* David and Jasmine are fictional characters used for illustrative purposes.
1 Subject to participation rate. Participation rate is not guaranteed, varies across indices and is subject to the performance of the participating fund.
2 Applied to the face value and the applicable factor to derive the actual guaranteed monthly cash benefit payable.
3 Only one index can be selected at any point, with 100 per cent allocation to it. Index redirection is allowed from the fourth policy year onwards, provided policy is in-force and premiums are paid to date. It will only take effect from the segment creation of the following month, after the index redirection application is completed.
4 Appointment of a secondary life assured is subject to insurable interest with the original owner(s) and approval by Prudential.
5 Change of life assured is subject to insurable interest with current policy owner, and can be done only after the premium payment term of the policy.
6 Refers to UBS Multi Asset Strategy Tactical Rotation (SGD) Index for SGD plan and UBS Multi Asset Strategy Tactical Rotation Index for USD plan.
7Refers to S&P 500 FC TCA 0.50 per cent Decrement Index (SGD) ER for SGD plan and S&P 500 FC TCA 0.50 per cent Decrement Index (USD) ER for USD plan.
8Refers to Shiller Barclays CAPE Allocator 6 Dynamic Risk Control (SGD) Index for SGD plan and Shiller Barclays CAPE Allocator 6 Dynamic Risk Control Index for USD plan.
You are recommended to read the product summary and seek advice from a qualified Prudential financial representative before purchasing an insurance policy that suits your needs.
As a life insurance policy is a long-term commitment, early termination usually involves high costs. The surrender value, if any, may be zero or less than the total premiums paid.
These policies are protected under the Policy Owners’ Protection Scheme, 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 covered under the scheme and the limits of coverage, contact your insurer or visit the General Insurance Association of Singapore website, Life Insurance Association website or SDIC website.
Terms and conditions apply.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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