What Should I Consider Before Opening A PRS Account?
Before you contribute to PRS, take into account your age, income, risk tolerance, and retirement goals. Consider your living expenses and inflation, and focus on long-term planning rather than short-term market fluctuations. Make sure to regularly review your PRS portfolio to ensure it stays aligned with your evolving needs and objectives.
1. Your Objectives
Your savings objectives can include capital growth, balancing growth and income and generating regular income.
2. Your Life Stage
Your risk appetite for investment depends on your current life stage.
3. Your Risk Appetite
What your comfort level is for investments that are higher risk with potentially higher returns vs lower risk and stable returns.
1. Your Objectives
Growth
Focus on maximizing capital growth through equities.
Growth & Income
Balance between capital growth and regular income with mixed assets (equities and bonds).
Income
Prioritize generating regular income through bonds and fixed income instruments.
2. Your Life Stage
Under 45 years old
You may want to focus on capital growths.
Between 45 – 54 years old
You may want a balanced portfolio of capital growth and income.
55 years old and above
You may be focused on generating sustainable income.
3. Your Risk Appetite
Aggressive
You are able to withstand market volatility and capital losses.
Moderate
You are looking at balancing market risk and returns.
Conservative
You are risk averse and seek capital preservation.
