SINGAPORE, 13 August 2019 – Prudential Singapore (“Prudential”) has launched a first-of-its-kind insurance savings plan that enables its customers to protect their retirement funds against the ups and downs of financial markets.
As Singaporeans live longer, they will require a bigger and more stable nest egg to fund their golden years after they stop work. PRUActive Retirement is designed to help Singaporeans plan for their retirement with greater confidence as their lifespans increase. The plan provides a higher retirement income when the market performs and does not cut payout when the market underperforms.
Mr Goh Theng Kiat, Chief Customer Officer, Prudential Singapore, said part of living well is to be financially prepared.
“Today, the average lifespan of Singaporeans is 84.8 years1, the highest in the world. While rising longevity is good news, it is also causing greater financial uncertainty among Singaporeans, many of whom do not believe they will be wealthy enough to live to 100 years of age2, especially with the rising living and healthcare costs. We want to take away some of this uncertainty from our customers with a solution designed to weather market volatility and provide a steady cumulative retirement income,” said Mr Goh.
Here is how PRUActive Retirement can offer a financial safety net for customers. In the first payout year, customers will receive their elected monthly retirement income. If the markets perform well in that year, they may receive an additional payout which becomes part of their new monthly guaranteed income. This principle applies for the entire payout period of the plan. In other words, one’s monthly retirement payout can only increase or remain levelled but will never be lower than the previous year’s monthly income.
A flexible retirement plan tailored to individual’s needs and aspirations
Besides offering certainty, PRUActive Retirement provides unparalleled flexibility. Customers can determine how long they want to save, the age at which they want to start receiving their first payout and for how long they want the monthly payout3.
They can choose to receive the monthly retirement payout at any age between 50 and 90 and for any duration of time starting from 10 years. Additionally, they also have the flexibility to adjust their payout period based on their changing needs.
This product design is in response to findings from a recent survey conducted by Prudential on retirement solutions. Customers surveyed indicated they wanted retirement solutions that could be tailored to their needs and aspirations.
“Our customers have different lifestyle expectations. For instance, customers who are single or have no children have indicated through our survey they would like to retire at 56, much earlier than those who are married or have children, presumably because of fewer financial obligations.
“Financing for a longer life requires insights into future aspirations and involves forward planning. By starting early to save for retirement, we can be readier to live to 100 and to enjoy our old age,” said Mr Goh.
Protection against the unforeseen
PRUActive Retirement also provides coverage against death before the payout period. The policyholder’s beneficiary will receive 101 per cent of the surrender value or 105 per cent of the total amount of premiums paid, upon his passing – whichever is higher.
If the policyholder passes on during the payout period, his beneficiary will receive 101 per cent of the surrender value. In a joint ownership policy for a married couple, the surviving spouse will automatically take over the ownership of the policy and continue to receive the monthly income.
The plan offers guaranteed acceptance regardless of a customer’s medical condition, which means no underwriting is required. In addition, it includes benefits such as Accidental Disability Monthly Income and Accidental Disability Waiver.
For more information, please visit our official webpage here.
About Prudential Assurance Company Singapore (Pte) Ltd (Prudential Singapore)
Prudential Assurance Company Singapore (Pte) Ltd is one of the top life insurance companies in Singapore, serving the financial and protection needs of the country’s citizens for 89 years. The company has an AA- Financial Strength Rating from leading credit rating agency Standard & Poor’s, with S$36.7 billion funds under management as at 31 December 2018. It delivers a suite of well-rounded product offerings in Protection, Savings and Investment through multiple distribution channels including a network of more than 5,000 financial consultants.
1The Burden of Disease in Singapore, 1990-2017: An overview of the Global Burden of Disease Study 2017 results.
2Prudential’s “Ready for 100? Preparing for longevity in Singapore” study released last September revealed that more than half of the 1,214 Singapore residents surveyed were not financially ready to live to 100 years of age. Fifty-two per cent of the respondents expect to rely on their salary to sustain themselves after they reach the statutory retirement age of 62.
3Terms and Conditions apply. Please refer to www.prudential.com.sg/pruactiveretirement for more details.