What Should I Consider?

When making your PRS contribution, you need to take into account various factors such as your age, personal and household income, risk tolerance, retirement objective as well as the suitability of the different funds under the various Schemes to meet your retirement needs. It is important to bear in mind the cost of living and inflation in setting your retirement goal as well as to think long-term; do not be overly concerned about short-term market fluctuations. Our needs change through different stages of our lives. You should review your PRS portfolio regularly to ensure that it matches your retirement objectives.

Retirement investment objective:

• Growth – primary focus is to generate compounding and accelerating capital growth by investing in equities.
• Growth & Income – balanced requirement for compounding capital growth as well as income by investing in mixed assets i.e. equities and bonds/fixed income instruments.
• Income – primary focus is to general regular income stream by investing in bonds/fixed income instruments.

Retirement life-stage:

• Less than 40 years , you may want to focus on capital growth
• Between 40 – 50 years, you may want to balanced capital growth and income
• Above 50 years, you may be focusing on generating sustainable income

Personal risk profile:

• Aggressive – you are able to withstand market volatility and capital losses
• Moderate – you are looking at balancing market risk and returns
• Conservative – you are unable to withstand capital losses