Embracing a Multi-stage Life

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 first edition, our Chief Investment Officer, David Chua, talks about embracing a multi-stage life, beyond the traditional three-stage education, career and retirement.

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 reviewing my personal finance and investment plans regularly. We are in the midst of structural economic changes where we are seeing a lower interest rate environment, disrupted industries and socio-political upheavals. Some have even named this as the Fourth Industrial Revolution, which will alter the way we live, work and relate to one another. This will inevitably affect our ability to save and invest enough for the future, so it is important to start financial planning early and constantly work on it.

Saving for 100 Report: Uncertainties and evolving lifestyles could impact my retirement planning.

Change is the only constant. I’m going to get prepared by embracing the multi-stage life. Singapore’s life expectancy in 2019 is among the highest in the world with an expected lifespan of 83.6 years1. We need to start thinking about life beyond the three-stage rubric of education, career and retirement. A longer life means more uncertainties and may pose financial challenges if we are not prepared to work in our seventies. The way we live, how we exercise and what we eat will also help us live healthily into our eighties, nineties and possible one-hundreds.

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

As the proverb goes, don’t put all your eggs in one basket. My saving strategy is to keep to a disciplined investment plan, taking on the appropriate level of risks based on my life stage. Managing liquidity and cash flows are also important in ensuring that we can sustain our preferred lifestyle. Beyond the monthly pay check, we should consider additional income sources from life insurance, endowments, investment or property. This may sound old school, but there are good reasons why we keep hearing about dollar-cost averaging and portfolio diversification. Simply because these strategies work!

Saving for 100 Report: Nearly 8 in 10 fear the cost of healthcare to be their biggest expense as they live for longer.

I beg to differ. I am saving for my preferred lifestyle in this multi-stage life. The rising cost of healthcare is a valid concern. However, one should not be living in fear of costs if we start planning for it today. We are fortunate to have good choices in either basic health insurance through Medishield Life or enhanced health insurance through insurance companies such as Prudential. In investment terms, this is akin to buying portfolio protection against tail risks which can never be fully anticipated!

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