Saving for the Future

Are you ready financially for 100? It may sound challenging but it’s possible! In the #Bringon100 series, our employees and financial consultants in Prudential share on planning financially for a longer life. In the fourth and last edition, our Management Associate, Tushar Kumar, talks about the importance of saving and growing your savings.

Saving for 100 Report: 44% of Singaporeans are not confident of saving enough because of growing financial responsibilities and costs of living.

#Bringon100 I am going to plan for my future by making saving a priority and investing in a diversified investment portfolio. I divide my income into three parts – monthly expenses, rainy day funds and long-term savings. It is imperative to adopt a disciplined approach to save for the future as spending recklessly will lead to little or no savings.

Saving for 100 Report: With so many responsibilities, 6 in 10 Singaporeans are postponing milestones such as marriage and having children because they need more time to save.

Time is never on our side, but we can start early. Savings is an utmost priority for me, and I find it easier to save at a younger age as responsibilities will increase over time.

Having just graduated, I aim to pay off my education loan in 30 months by prioritising savings, making smart investments and seeking advice on optimising the returns. By setting specific saving goals over different time frames, I believe that this will help me to save without sacrificing on my life’s milestones.

Saving for 100 Report: Singaporeans are diversifying income sources with CPF, bank savings, insurance and investments in their financial plans.

It’s just as important to grow your money as to invest in protection plans because if COVID-19 has taught us something, it is not to put all your eggs in one basket. It is crucial to protect yourself, your family and your financial security. A sudden shock like a global pandemic or a lethal accident can wither away your savings. That’s why I keep emergency funds in protection plans and invest savings in low-risk options for milestone events.

Diversification is also key in ensuring that we can yield the benefits of high-return options to fund our dreams. My dream is to own a house, support my parents, travel the world and build a family. And I plan to do it on my own accord by diversifying my income sources.

Saving for 100 Report: Millennials are more tolerant of risk in their financial strategies than the older generation.

Mark Zuckerberg said that the biggest risk is not taking any risk. I say that your savings will not grow if you do not take risk. I started micro- investing in the blockchain currencies and application-based markets at 18 – investments that my father would most likely be wary of. Don’t save fearfully, save smartly. I understood the risk posed by each of these alternative investment options and use them to diversify my portfolio for higher returns. All investments carry risk. Building a diversified portfolio along with financial consultation can help you to optimise risk and get higher yields.

Read Our Saving for 100: Funding longevity in a time of uncertainty report to find out what are some of the financial challenges Singaporeans face as life expectancy rises and how they plan to manage their wealth in anticipating of living a longer life.

Let’s be prepared to live life to the fullest, up to 100! #Bringon100