5 things to consider as we are living longer lives
In the last century, we’ve made leaps and bounds in science, medicine and technology. The result is that we’re leading longer lives today. Back in 1950, the average life expectancy for a Singapore resident was 57.94 years. By 2074, it will be 90 years of age1. Many of us will live beyond that, a prospect that’s both invigorating and sobering. After all, let’s be honest. How many of us are prepared to live to 100?
Living to 100 goes beyond just leading a longer life. More importantly, it’s living a fruitful and engaged life, all the way to 100. Many of us will have a life journey that differs significantly from our parents’. Millennials and following generations will lead lives with multiple careers and career breaks, instead of a long retirement that will stretch for decades. And in between careers, we might pursue our passions, develop a side hustle, or further our studies.
Living longer means we have a chance to achieve more of our life goals and pursue our interests. It also means we need to be financially prepared to accomplish these achievements. In a recent Economist Intelligence Unit (EIU) white paper on Saving for 100 commissioned by Prudential, over 44% of all respondents were not confident that their savings would suffice2. To help Singapore residents prepare to lead longer lives, here are five points to keep in mind.
1. Set Your Goals in Life
What are your life goals, and when do you anticipate achieving them? Do you hope to turn a childhood hobby into a career, or start your own fitness studio someday? To achieve these goals, you should break them down into smaller aims and figure out how to accomplish each step.
As you craft a life plan with goals in the short and longer term, you’ll be able to formulate a financial plan that follows these life stages. And as life brings constant changes, you should review your plan regularly to ensure you can align your goals with the needs of your loved ones or as circumstances demand.
2. Engage in an Active Lifestyle
In order to live a fulfilling life even in later years, you need to maintain your health. Living to 100 is about living well as much as it is about living longer. That requires an active lifestyle and maintaining a healthy diet to remain mentally sharp as you age. To conveniently manage your well-being no matter where you are, use our Pulse by Prudential app. Its A.I.-powered functions covers a variety of health and wellness needs, including video consultations with a doctor.
Staying engaged in your interests will keep you mentally stimulated, whether it’s horticulture that fascinates you or an active sport like cycling. That’s why it’s important to continuously nurture your passions throughout your life, or develop new ones as old interests fade away. Whether you’re keen on community support or passing on your wisdom to the next generation, staying engaged will benefit you tremendously.
3. Make Time for Self-Improvement
Along with staying engaged, it’s also important to keep up with the times, whether professionally or personally. According to the book The New Culture of Learning, the half-life of a learned or professional skill before 2017 was five years3. Today, the World Economic Forum estimates that one-third of all skills needed by workers have changed, regardless of industry4. The COVID-19 pandemic has only accelerated this, and made it even more obvious.
What that means is that you will need to gain new professional skills and certifications beyond a tertiary education, over and over again. Taking a mid-career break to pursue personal development or higher education is already a common concept today. But it does require allocating time as well as funds to do so.
Does your financial planning include a savings insurance plan that can support your upskilling needs? Our plans such as PRUActive Saver II and PRUFlexicash provide customisability and flexibility, respectively, to support you financially as you focus on upskilling yourself. To find out what savings plans will suit your lifestyle needs, take our #BringOn100 quiz.
4. Longer Lives, Longer Coverage
If you live to 90 or more, you’ll want to ensure that your protection and savings insurance plans are maintained for as long as you live. Our protection plans have been developed to offer coverage for a longer lifespan. Many of our savings and wealth accumulation plans are also designed to support longer lifestyle needs. For example, PRUWealth II is a flexible savings plan that covers you to 100 years, and lets you withdraw funds when needed for important milestones in life. Learn more about these plans to find a solution that’s suited for you.
5. Let Your Savings Do the Hard Work
According to the EIU Saving for 100 report, many Singapore residents believe they will need to invest more of their savings to ensure they can financially support a longer life2. It’s also advisable to develop additional sources of passive incomes to support your financial needs in the future, whether that’s investing in real estate or some other plan. It’s important to start saving throughout your entire adult life, but investing your money for the long term will reap even greater benefits for you.
There are various ways to save for your future and retirement needs. One example is the Supplementary Retirement Scheme (SRS). Not only does it offer Singapore residents a tax-deductible savings solution, you can also invest your SRS monies in investment products such as insurance savings plans. Our SRS-friendly PRUActive Saver II and PRUGolden Retirement Premier savings plans offer capital guarantee upon maturity and regular income payouts respectively, to meet your individual financial needs. To calculate your tax benefits when you fund your SRS account, and the potential returns when you invest with SRS funds, use our SRS calculator.
Saving for 100 starts with developing a financial plan so you can #BringOn100 ways to live, whether you want to achieve them in five or 50 years’ time. To start saving for your future, get in touch with a Prudential Financial Consultant so you can plan to #BringOn100 today.
1Based on data provided by the United Nations - World Population Prospects.
2Based on the Saving for 100 report by the EIU, available here.
3The New Culture of Learning, available here.
4Based on the Accelerating Workforce Reskilling report by the WEF, available here.
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Information is correct as at 27 November 2020.
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