Planning for retirement is more than just a financial decision; it’s about securing peace of mind for the future.
However, with the myriad of options available, finding the best retirement annuity plans in Singapore can be a challenge.
It’s easy to feel overwhelmed, especially when the stakes are high.
A misstep now could impact the quality of your later years. But fear not. With the right guidance and information, you can navigate this complex landscape confidently.
We aim to help you make informed choices, ensuring that your retirement is both comfortable and worry-free.
Let’s embark on this journey together, ensuring your hard-earned savings work best for you.
Before we proceed to explain why we’ve selected each for the respective categories, you must understand the basis of our picks.
Here is the comparison of features between different retirement annuity plans in Singapore.
Comparing the Best Retirement Annuity Plans in Singapore
| Prudential PRUActive Retirement III | AIA Retirement Saver (IV) | Great Eastern GREAT Retire Income | Great Eastern GREAT Prime Rewards III | Great Eastern GREAT Lifetime Payout 2 Special | Singlife Flexi Retirement (Previously Aviva MyRetirementChoice (III)) | Singlife Flexi Income (Previously Aviva MyLifeIncome (III)) | Singlife Legacy Income | Tokio Marine Retirement GIO Plus (II) | Tokio Marine Nest Egg II (FlexiSaver) | China Taiping i-Cash (III) | China Life Lifetime Income | Manulife Ready LifeIncome (III) | Manulife RetireReady Plus (III) | NTUC Income Gro Retire Flex Pro | NTUC Income Gro Cash Sure | NTUC Income Gro Annuity Pro | |
| Premium Term Options | SP, For RP, any years up to 4 years before payout starts | SP, 5 or 10 years, or up to 5 years before payouts start | 5, 10, 15, 20 years | SP | 3 years | 5, 10, 15, 20 or 25 years | SP, 3, 5, 10, 15, 20 or 25 years | SP, 3, 5, or 10 years | 5 years | 5, 10, 15 years | 5, 10 years | 5, 10, 15, 20 or 25 Years | 5 or 10 years | SP, 5, 10, 15 or 20 years | SP, 5, 10, 15, 20, 25, 30, 35, or 40 years | 5 or 10 years | SP |
| Is SRS Payment Available? | Yes | Yes | Yes | Yes | Yes | No | Yes | Yes, for SP | No | No | No | No | No | Yes | Yes, for SP | No | No |
| Payout Period | 10, 15, 20, 25 or 30 years | 15 or 20 years | 10 or 20 years | 10, 15, 17, 20 years | Lifetime | 5, 10, 15, 20, 25, 30, or 35 years | Lifetime | Up to 100 years | Lifetime | 10, 15, 20 years | to age 85 | Lifetime | Up to 120 years | 5, 10, 15, 20 years or lifetime | 10 or 20 years, or up to 100 years | Up to 120 years | Lifetime |
| When Payouts Commence | Start payouts from age 50 to 90 | Start payouts at age 50, 55, 60, 65 or 70 | Start payouts at age 56, 61, 66 or 71 | 0, 3 or 5 years* | 3.5 years | 5-year premium: 5 – 40 years^ 10, 15, 20 or 25 year premium: 0 – 40 years^ | SP: 4 to 20 years 3 years premium term: 2 to 20 years Any other premium term: 0 to 20 years | SP: 13th month 3 year premium term: 37th month 5 year premium term: 61th month 10 year premium term: 121th month | No option. Payouts start immediately | 0 to 10 years | Start payouts immediately or 1 year before the policy matures | 0 to 40 years | 5 year premium term: End of 5th year 10 year premium term: End of 10th year | Start payouts at age 50, 55, 60, 65 or 70 | 10 or 20 years | No option. Payouts start immediately | No option. Payouts start immediately |
| Frequency of Payouts | Monthly | Monthly | Monthly | Annual | Monthly | Monthly | Annual | Monthly | Annual | Monthly | Annual | Annual | Annual | Monthly | Monthly | Annual | Monthly |
| Additional Payouts due to Disability | 2X monthly cash benefit (Accidental Disability) (Max: 6,250+) | – | 1.5X monthly cash benefit if unable to do 2 ADLS (Max: 2,500) 2X monthly cash benefit if unable to do 3 ADLS (Max: 3,000) | – | – | 1.5X monthly cash benefit if unable to do 2 ADLs 2X monthly cash benefit if unable to do 3 ADLs | – | – | – | – | – | – | – | 1.5X monthly cash benefit if unable to do 2 ADLS (Max: 2,000) 2X monthly cash benefit if unable to do 3 ADLS (Max: 4,000) | – | – | – |
| Protection | Death | Death | Death, TPD & TI | Death, TPD & TI | Death & TI | Death & TI | Death & TI | Death & TI | Death & TI | Death & TI | Death | Death & TI | Death & TI | Death & TI | Death, TI, Disability | Death & TI | Death |
| Additional Features | – Flexibility to change income payout period 2 months before the start of payout – Premium waiver in the event of accidental disability – Appointed spouse, who is also a joint owner, will succeed your policy if you pass on – Option to withdraw premiums or keep them to accumulate interest | “– 12-month interest-free premium deferment if retrenched “ – Non-guaranteed terminal dividend bonus upon claim, maturity or surrender of the policy – Non-guaranteed terminal dividend bonus upon claim, maturity or surrender of the policy | – Flexibility to change income payout period 6 months before the start of payout | – Option to withdraw premiums or keep them to accumulate interest | – Option to withdraw premiums or keep them to accumulate interest | – Premium waiver for TPD – Flexibility to change monthly payouts into a lump-sum payout in the event of partial disability – Choose to receive a lump-sum payout at your chosen retirement age, which can be converted into monthly payouts – Option to withdraw premiums or keep them to accumulate interest | – | – Wide range of premium waiver riders – Higher cash payouts as the time goes to adjust for inflation – Early surrender (Singlife ensures that the sum of Guaranteed Cash Surrender Value and Guaranteed Income will at least be equivalent to the total premiums paid.) – Change of life assured for up to 2 times – Option to withdraw premiums or keep them to accumulate interest | – | – | – Lump-sum payout at 85 – Option to withdraw premiums or keep them to accumulate interest | – Option to withdraw premiums or keep them to accumulate interest at 2.75% p.a. | – TPD premium waiver up to 70th birthday or end of premium payent term – Retrenchment benefit where you get 50% or up to 100% if you’re retrenched and unemployed for minimally 30 days – Premium freeze for a year for up to 2 times, depending on premium terms – Change of life assured – Option to withdraw premiums or keep them to accumulate interest | – Flexibility to change income payout period 2 years before income payout – Retrenchment benefit where you get 50% or up to 100% if you’re retrenched and unemployed for minimally 30 days – Able to freeze premiums for 1 year and have your policy stay in-force | – Retrenchment benefit where you don’t have to pay premiums for 6 months if you’re retrenched and unemployed for minimally 3 months. Further deferred for another 6 months if you can’t find another job – Option to add cancer coverage – Option to add premium waivers for CI and cancer – Option to withdraw premiums or keep them to accumulate interest | – Retrenchment benefit where you don’t have to pay premiums for 6 months if you’re retrenched and unemployed for minimally 3 months. Further deferred for another 6 months if you can’t find another job – Option for TPD premium waiver rider that also gives you 2 years worth of premiums upon diagnosis – Option to add premium waivers for cancer – Change life assured for up to 3 times – Guaranteed issuance for up to 2 additional life policies – Option to withdraw premiums or keep them to accumulate interest | – |
Best Retirement Annuity Plan in Singapore
Manulife RetireReady Plus (III)
First up, if you’re looking for the overall best retirement plan in Singapore, we believe that the Manulife RetireReady Plus (III) beats every other policy available in the market.
It offers the perfect balance between high returns and flexibility in a retirement plan – something often needed from one – especially in your golden years.
The Manulife RetireReady Plus (III) offers a range of premium payment terms: Single, 5, 10, 15, or 20 years, giving you a choice based on how much or how long you believe you can commit to paying premiums.
You can select a payout age based on when you want to start receiving your retirement income, starting at 55 and going up to 70, in multiples of 5.
There are also multiple payout options available, allowing you to select from 5, 10, 15, 20 years, or a lifetime worth of payouts—putting the power of flexibility in your hands.
In terms of protection, the Manulife RetireReady Plus (III) covers you for death and terminal illness.
If you’re unable to perform 2 activities of daily living (ADLs), the Manulife RetireReady Plus (III) has your back coming in with 1.5X of your monthly benefit, at a cap of $2,000.
Can’t perform 3 ADLs?
Manulife just increased your cash benefit to 2X, with a cap of $4,000.
It also comes with some nifty features, such as the ability to change your income payout period 2 years before it starts being paid.
Should you get retrenched and are unemployed for minimally 30 days, the Manulife RetireReady Plus (III) has a retrenchment benefit where you get 50% of your annual premiums to help you tide through difficult times.
Not only that, but they let you freeze your premiums for a year, too!
Oh, I almost forgot, based on our analysis of participating fund returns of major insurers, Manulife’s par funds performed the best in the long term – making the Manulife RetireReady Plus (III) the perfect option for those seeking the highest returns.
With such a delicate balance between features and returns, there’s no wonder why we selected the Manulife RetireReady Plus (III) as the best retirement plan in Singapore.
Best Single Premium Retirement Plan
Manulife RetireReady Plus (III)
Well, if you have a lump sum of cash and are looking to invest it in an annuity plan, then perhaps choosing a single premium retirement plan might be a wise choice.
You let your money immediately do all the work for you without losing any of it to the dreaded inflation we all hate.
And if we had to pick the best single premium retirement plan, the Manulife RetireReady Plus (III) wins again.
As previously mentioned, it has the perfect balance between flexibility and high returns, making it a highly attractive option for almost everyone.
So if you are looking for a single premium plan, look no further than the Manulife RetireReady Plus (III).
Best Retirement Plan with Guaranteed Payouts (Non-Lifetime) – Option 1
| NTUC Income Gro Retire Flex Pro | Prudential PRUActive Retirement III | AIA Retirement Saver (IV) | Manulife RetireReady Plus (III) | Tokio Marine Nest Egg II (FlexiSaver) | Great Eastern GREAT Retire Income | |
| Start Payouts at | 71 | 70 | 70 | 70 | 70 | 71 |
| Accumulation Period | 20 | 10 | 10 | 10 | 10 | 10 |
| Payout Duration | 10 | 15 | 10 | 10 | 10 | |
| Premium Term | 10 | 10 | 10 | 10 | 10 | 10 |
| Premium Paid | 50,000 | 50,000 | 49,352 | 49,698 | 50,116 | 50,000 |
| Guaranteed Returns | 58,594 | 59,532 | 55,800 | 54,000 | 52,800 | 59,760 |
| Non-Guaranteed Returns | 46,435 | 37,347 | 69,065 | 45,504 | 47,678 | 40,810 |
| Total Expected Returns | 105,029 | 96,879 | 124,865 | 99,504 | 100,478 | 100,570 |
*Numbers are based on 50-year-old male, non-smoker, single premium
^Returns are based on a 4.25% illustration rate except for PRUActive Retirement, which is based on a 4.00% illustration rate
Great Eastern GREAT Retire Income
Many Singaporeans ignore the fact that an annuity plan will come with both guaranteed and non-guaranteed payouts when choosing a retirement plan.
This is potentially a crucial mistake that many make as the guaranteed payouts are what you’re SURE to receive, while non-guaranteed payouts are what you MIGHT receive.
So when choosing a retirement plan, choosing one that offers the highest guaranteed payouts can be quite important, especially if you’re prudently planning for your retirement.
In this category, we compared retirement plans that do not provide lifetime payouts to make a fairer comparison across the board.
The clear winner here is the Great Eastern GREAT Retire Income.
Based on the above illustrations, the GREAT Retire Income has the highest guaranteed returns at $59,760.
This means that regardless of market fluctuations, you’ll receive this amount, ensuring peace of mind as you navigate your retirement years.
Not only does this offer the highest guaranteed returns, but it also comes with somewhat flexible features.
You can select from 5, 10, 15, or 20 years of premium payment terms, a payout age of 56, 61, 66, or 71, and a payout period of 10 or 20 years.
The payout period can also be changed 6 months before the payout starts.
The GREAT Retire Income provides coverage against death, TPD, and TI, with an additional 1.5X monthly cash benefit if you cannot do 2 ADLs (capped at $2,500).
If you cannot perform 3 ADLs, Great Eastern will increase this amount to 2X, with a limit of $3,000.
So, if the highest guaranteed returns are important to you, the GREAT Retire Income is a good choice, as it also offers a level of flexibility and coverage.
Best Retirement Plan with Guaranteed Payouts (Non-Lifetime) – Option 2
NTUC Income Gro Retire Flex Pro
If you’re not all that convinced with the GREAT Retire Income, then a good alternative to this category is the NTUC Income Gro Retire Flex Pro.
It has the 3rd highest guaranteed returns at $58,594, which is not too far off from Great Eastern’s GREAT Retire Income.
Furthermore, it illustrates a pretty decent non-guaranteed return of $46,435 as compared to Great Eastern’s $40,810 – giving you an overall higher potential return.
But the overall potential return isn’t the focus here — many readers I’ve talked to love the NTUC Income Gro Retire Flex Pro for its features.
It has a wider range of premium payment terms to choose from (5 to 40 years), and you can get payouts for 10 or 20 years or even up to when you turn 100 years old.
The NTUC Income Gro Retire Flex Pro also comes with a whole bunch of features and benefits, but I will cover them in a later category.
But if you don’t want to sacrifice flexibility but you want the highest guaranteed return from a retirement plan, then the NTUC Income Gro Retire Flex Pro is for you.
Best Retirement Plan Offering Lifetime Payouts
Manulife Ready LifeIncome (III)
The average life expectancy of Singaporeans is about 83 years old, so many individuals plan their retirement income up to this age.
But what if you’re blessed with a long life and live well beyond 83 years old, would that mean you will not have any retirement income if your annuity plan pays for a specific number of years?
Well, not necessarily.
Introducing to you an annuity plan that offers a lifetime of payouts – a retirement plan that pays for your entire lifetime!
In this category, the winner is the Manulife Ready LifeIncome (III).
It has a premium payment term of 5 or 10 years, and the payout starts immediately after the premium payment term ends.
Don’t need the payouts that soon?
You can choose to reinvest them to accumulate interest, earning more for yourself in your golden years.
The Manulife Ready LifeIncome (III) also comes with a retrenchment benefit of 50% of your annual premiums should you be retrenched and unemployed for 30 consecutive days.
Worried about not being able to pay your premiums?
No problem, the Manulife Ready LifeIncome (III) lets you freeze your premiums TWICE, depending on your premium payment terms.
Protection-wise, it covers you for death and terminal illness, with a TPD waiver up to your 70th birthday.
What seals the deal is Manulife’s participating funds performance, which brings in the best returns over the long term, making it extremely ideal since you will be needing continuous payouts from your policy.
So if you’re searching for the best retirement plan that gives you a lifetime of payouts, look no further than the Manulife Ready LifeIncome (III).
Best Single Premium SRS Retirement Plan
| NTUC Income Gro Retire Flex Pro | Prudential PRUActive Retirement III | AIA Retirement Saver (IV) | Manulife RetireReady Plus (III) | |
| Start Payouts at | 71 | 70 | 70 | 70 |
| Accumulation Period | 21 | 20 | 20 | 20 |
| Payout Duration | 10 | 15 | 15 | 15 |
| Premium Paid | 50,000 | 50,014 | 49,945 | 49,027 |
| Guaranteed Returns | 57,630 | 65,160 | 63,000 | 55,800 |
| Non-Guaranteed Returns | 73,841 | 75,535 | 100,829 | 75,859 |
| Total Expected Returns | 131,471 | 140,695 | 163,829 | 131,659 |
*Numbers are based on 50-year-old male, non-smoker, single premium generated from CompareFirst
^Returns are based on a 4.25% illustration rate except for PRUActive Retirement (II), which is based on a 4.00% illustration rate
Manulife RetireReady Plus (III)
For those who are looking to invest their SRS funds into a retirement plan, you need to look for a retirement plan that accepts your SRS funds (duh) as not all annuities do.
There are only 4 policies that offer SRS payments, and the best single premium SRS retirement plan is the Manulife RetireReady Plus (III).
It offers flexibility in terms of when payouts can start, provides you with retrenchment benefits, and covers for death, TI, and TPD waiver.
Not forgetting Manulife’s participating funds are the best performing amongst all insurers in Singapore – making the Manulife RetireReady Plus (III) the perfect option to earn more than the measly 0.05% p.a. offered by your SRS account.
Best Single Premium SRS Retirement Plan with Highest Projected Returns
AIA Retirement Saver (IV)
Although Manulife has the best-performing participating funds, AIA’s Retirement Saver (IV) projects returns that surpass all annuity plans by a huge margin despite being the 3rd best in performance.
We’re not too sure why this is, but an insurer would not want to project returns for you that are higher than what they can achieve, as this means that
- They have to pay you more money
- You’ll be upset if your actual returns are not within the projected range
Because of this, I’m led to believe that AIA’s Retirement Saver (IV) might actually be the policy to give you the highest projected returns, winning this category.
So if you’re hoping for the highest returns from your retirement plan, then the AIA Retirement Saver (IV) is the choice for you.
Best Retirement Plan with Comprehensive Disability Coverage
Singlife Flexi Retirement
Life is unpredictable, so it’s essential that we are prepared for any curveballs that might come our way.
One such unpredictability is a disability – whether from an accident, illness, injury, or simply just from old age.
And if you were to have a disability, you would need more retirement income to pay for hospital appointments or assistance from a helper.
Thankfully, the Singlife Flexi Retirement stands out here.
Should you find yourself unable to perform 2 ADLs, it kicks in to give you additional monthly cash benefits of 1.5X.
Should this increase to 3 ADLs, Singlife will give you an additional 2X of monthly cash benefits!
Unlike other annuity plans, there is no cap on how much you’ll receive, making the Singlife Flexi Retirement shine bright amongst its competitors.
Not forgetting that the Singlife Flexi Retirement also comes with flexible premium terms, payout periods, and even the commencement of payouts, letting you customise your retirement plan based on your needs.
Best Retirement Annuity Plan with Flexible Premium Payment Terms
NTUC Income Gro Retire Flex Pro
When it comes to making premium payments, there’s no one-size-fits-all.
Some might prefer to pay over an extended period, while others might only have a few more years before they need the payouts.
In this case, finding a retirement plan with flexible premium payment terms is essential as you can tailor it based on your own timeline and what you can afford.
This is where the NTUC Income Gro Retire Flex Pro reigns supreme.
It has 10 premium payment options for you to choose from – Single premium, 5, 10, 15, 20, 25, 30, 35, or 40 years.
So if you want to start saving for retirement at the age of 30 or just only got started at 55, the NTUC Income Gro Retire Flex Pro has an option for you.
The plan offers a robust suite of benefits, ensuring that while you enjoy flexibility in payments, you don’t compromise on the quality of your retirement.
NTUC Income’s participating funds are also the 2nd best-performing funds over the long term, sealing the deal on making it an awesome retirement plan for you to consider.
Best Retirement Annuity Plan with Flexible Payout Options
Singlife Flexi Retirement
Having the freedom to decide when exactly you receive your retirement income and for how long is invaluable.
The Singlife Flexi Retirement plan offers various payout options catering to a wide range of individuals.
Whether you’re envisioning a short 5-year payout to kickstart your retirement adventures or a prolonged 35-year payout to ensure sustained financial comfort, this plan offers the breadth to accommodate your aspirations.
But the flexibility doesn’t end there.
The Singlife Flexi Retirement also offers a broad spectrum of options for when you’d like your payouts to commence.
Whether you’d like it immediately after your premium payment term ends or up to 40 years down the road, you can do so with the Singlife Flexi Retirement.
This makes it perfect for individuals looking to get their retirement income at a specific age – something that many retirement plans don’t offer.
Best Feature-Rich Retirement Plan
NTUC Income Gro Retire Flex Pro
Many know that retirement plans are not one to offer loads of features and flexibility.
That’s until the NTUC Income Gro Retire Flex Pro was introduced to the Singapore market.
Jam-packed with features that will cater to every nuance of your retirement journey, the NTUC Income Gro Retire Flex Pro is a masterclass in offering a holistic retirement solution.
Firstly, there’s the Retrenchment Benefit.
If you find yourself retrenched and unemployed for 3 consecutive months, NTUC Income will waive your premiums for 6 months.
Suppose you’re finding difficulties getting a job, NTUC Income understands that and defers your premium payments for 6 months, delaying your financial burden.
And as you get older, your risk of cancer or ECI/CI becomes significantly higher.
NTUC Income understands that and gives you the option to cover yourself against cancer or add on premium waivers for CI and cancer – making sure that you have one less responsibility to worry about in difficult times.
Combined with the array of premium payment terms and flexible payout periods mentioned previously, the NTUC Income Gro Retire Flex Pro lets you have a retirement journey you can look forward to.
Best Inflation-Protected Retirement Annuity Plan
Singlife Legacy Income
Inflation is a silent killer in everyone’s journey, gradually eroding the purchasing power of your hard-earned savings.
Recognising this, the Singlife Legacy Income has stepped forward to ensure that your retirement income increases so that your spending isn’t affected.
As the years pass, the Singlife Legacy Income promises higher cash payouts by adjusting and increasing them to counteract the effects of inflation.
But Singlife’s commitment to your financial well-being doesn’t stop here.
The Singlife Legacy Income comes with features like the early surrender option, where your Cash Surrender Value and Guaranteed Income are guaranteed to be at least the total premiums you’ve paid.
You can also change the life assured, withdraw or reinvest your monies, and choose from a wide range of premium waiver riders to keep your policy adaptable to the changing times.
For those seeking peace of mind in an ever-fluctuating economy, the Singlife Legacy Income is a beacon of stability and growth, making sure it’s there for you in your golden years.
Best Retirement Plan for Late Starters (Starting After Age 50)
AIA Retirement Saver (IV)
Embarking on the retirement planning journey later in life can present its own set of challenges.
However, these challenges don’t have to be insurmountable.
With the right plan, such as the AIA Retirement Saver (IV), they can be transformed into golden opportunities.
This plan stands as a beacon of hope, meticulously crafted to cater to those who’ve begun their retirement preparations after age 50.
Let’s delve into the specifics that make this plan a standout:
Flexibility in Starting Payouts:
Late starters often require the leeway to postpone their payouts, giving their investments ample time to mature and flourish.
The AIA Retirement Saver (IV) offers this very flexibility.
Policyholders can initiate their payouts at various ages – be it 50, 55, 60, 65, or even 70.
This spectrum of choices ensures that individuals can customise their retirement income to align perfectly with their unique life situations and financial aspirations.
Total Expected Returns:
For those who’ve begun their retirement journey a bit late, securing competitive returns is paramount to ensure a serene and comfortable retirement.
The AIA Retirement Saver (IV) doesn’t disappoint in this regard.
Boasting a projected total return of $163,829 (based on a 4.25% illustration rate), this plan guarantees that late starters can still enjoy substantial benefits, optimising their retirement savings.
Premium Payment Options:
Different individuals have varied financial capacities. While some might have a significant lump sum ready for investment, others could prefer a more staggered payment approach.
Recognising this, the AIA Retirement Saver (IV) offers diverse premium payment options.
Whether it’s a Single Premium, a span of 5 or 10 years, or payments up to 5 years before the payouts commence, there’s a structure to suit every financial scenario.
Additional Features:
Beyond the foundational offerings, the AIA Retirement Saver (IV) brings to the table some exceptional features.
In the unfortunate event of retrenchment, policyholders can benefit from a 12-month interest-free premium deferment, ensuring they have a financial cushion during turbulent times.
Moreover, the plan’s non-guaranteed terminal dividend bonus offers the potential for added growth, enhancing the overall value proposition of the plan.
In conclusion, while starting late in the retirement planning journey might seem like a setback, with the AIA Retirement Saver (IV), it’s quite the opposite.
This plan ensures that late starters are not only accommodated but are also equipped with a comprehensive solution that promises a future filled with financial stability and luxury.
Best Retirement Plan for Self-Employed Individuals
Singlife Flexi Retirement
Navigating the unpredictable journey of self-employment can be daunting.
The highs are exhilarating, but the lows can be challenging. It’s a path that requires resilience, adaptability, and a solid plan for the future.
That’s where the Singlife Flexi Retirement comes into play.
When it comes to premium term options, the plan offers a range that spans from 5 to 25 years.
This flexibility is a testament to its understanding of the fluctuating income streams often associated with self-employment.
Whether you’re in a phase of your career where you’re raking in substantial profits or going through a lean period, there’s an option tailored to your financial situation.
It’s not just about offering choices; it’s about providing meaningful options that resonate with the unique challenges of being self-employed.
The payout options further underscore this adaptability.
With durations that stretch from 5 to 35 years, the plan caters to a broad spectrum of retirement visions.
Perhaps you’re someone who’s looking forward to an early retirement, spending your days on a sun-kissed beach.
Or, you might be the kind of individual who envisions working on passion projects well into their golden years.
Whatever your retirement dream, the Singlife Flexi Retirement plan ensures that the financial aspect aligns seamlessly with your vision.
One of the standout features of this plan is the flexibility it offers in terms of when you can start receiving your payouts.
Depending on your chosen premium term, you can either begin immediate payouts or defer them for up to a staggering 40 years.
This level of control is invaluable, allowing you to strategise your retirement finances in a manner that’s in sync with your life goals.
But what truly sets this plan apart is its comprehensive suite of features tailored for the unpredictable nature of self-employment.
For instance, should you ever face the unfortunate circumstance of Total Permanent Disability, the plan ensures your premiums are taken care of.
It’s a reassuring safety net, ensuring that even in the face of adversity, your retirement aspirations remain unscathed.
In the vast landscape of retirement plans available in the market, the Singlife Flexi Retirement distinguishes itself.
It’s a plan that doesn’t just crunch numbers; it empathises with the unique challenges and aspirations of the self-employed. And for that, it undoubtedly earns our recommendation.
Best Retirement Plan for Early Retirement Enthusiasts
Singlife Flexi Retirement
For those who’ve been meticulously planning their early exit from the daily grind, the Singlife Flexi Retirement plan emerges as a beacon of hope.
This plan, previously known as Aviva MyRetirementChoice (III), is not just another retirement plan; it’s a testament to flexibility and foresight.
One of the most enticing features of this plan is its ability to commence payouts remarkably early.
Imagine starting to receive your payouts just after a 5-year premium term. It’s almost like getting a head start in the retirement race, ensuring you’re well ahead of your peers.
The plan’s premium term options are as diverse as they come.
Ranging from 5 to 25 years, it offers the freedom to choose how long you wish to pay, aligning seamlessly with early retirement aspirations.
Whether you’re someone who wants to make quick payments and enjoy the benefits or someone who prefers spreading it out, this plan has got you covered.
But what truly sets the Singlife Flexi Retirement plan apart is its payout duration.
With options spanning from 5 to a staggering 35 years, it promises a consistent and reliable income stream, ensuring that your early retirement days are as comfortable as they are long.
Protection, as we know, is the backbone of any financial plan.
Recognising this, the plan incorporates a premium waiver for Total Permanent Disability.
It’s a reassuring feature, ensuring that life’s unpredictable challenges don’t derail your retirement dreams.
The plan’s adaptability is another feather in its cap.
With provisions to adjust the payout period, it acknowledges that financial needs can evolve, especially for early retirees. This adaptability ensures that you’re always in control, come what may.
Additionally, the Singlife Flexi Retirement plan is peppered with features that enhance its appeal.
From options to convert monthly payouts into a lump sum during partial disability to withdrawing premiums or letting them accumulate interest, it’s evident that this plan is designed with the retiree’s best interests at heart.
The Singlife Flexi Retirement plan is a comprehensive solution for those with an eye on early retirement.
Its blend of flexibility, protection, and adaptability makes it a top contender, ensuring that your early retirement is not just a dream, but a well-financed reality.
So What’s Next?
In financial planning, it’s essential to remember that while policies may align with specific scenarios or features, real life is far more nuanced.
Each individual’s journey is shaped by a myriad of factors—financial standing, health conditions, life stages, and countless other variables.
As such, what might seem like a perfect fit on paper might require a different approach in practice.
Moreover, it’s worth noting that not all policies are universally accessible; there might be instances where you don’t qualify due to specific reasons.
Given the complexities and the high stakes involved, it’s always prudent to seek a second opinion.
An unbiased financial advisor can offer invaluable insights, ensuring your choices are well-informed and tailored to your unique circumstances.
If you’re looking for guidance, don’t hesitate to reach out to one of our trusted partners who represent a broad spectrum of insurers, ready to assist you on your financial journey.
Factors to Consider when Choosing Your Retirement Annuity Plan
Expected Retirement Income
When choosing your annuity plan, the first question to ask is – what’s your dream retirement? If you skipped the above question, here’s your prompt to imagine it again.
This might sound weird, but once you get this question out of the way, you can determine your expected retirement income amount.
There is no “right” retirement income.
If you just pluck an arbitrary amount from some random article on the internet just because it’s what most people go for, you might end up paying for more than you need, or worse, not having enough to enjoy the retirement years that you hustled so hard for.
How much do you need to continue your current standard of living? Do you require additional money to beat inflation?
Are you expecting to go on an Around the World in 80 days expedition to make up for the travel escapades you missed out on due to COVID?
Will you need to fund those secret McDonald’s trips when you bring your grandchildren because they are “banned from fast food”?
Once you’ve determined your desired retirement income, the next thing to look at are the plans that you currently own that will also supplement your retirement.
This includes endowment products, investment-linked plans, etc., and of course, your CPF LIFE plan, which is a national annuity scheme that everyone has.
Subtract these from your total expected retirement income, and you’ll arrive at the amount that your private annuity plan should cover.
Knowing this number will help in a lot of the decisions you make later on.
Guaranteed vs Non-Guaranteed Returns
Once you’ve arrived at the retirement income your private annuity should provide you, the next step would be to take a look at the projected income the different retirement plans provide.
While many insurers tout returns of up to 4 to 5% p.a., and up, you should take this number with a pinch of salt because it comes with a guaranteed and non-guaranteed portion.
Unfortunately, while non-guaranteed returns are great to have, there’s a likelihood that they may not be realised. So it’s risky to rely on this number to select your plan.
Instead, what you should be looking at is the guaranteed income. It should be sufficient enough to cover the amount you’re expecting to receive from your private annuity.
And if the non-guaranteed returns are realised, then hooray, you get to treat yourself.
That’s not to say that the non-guaranteed returns are not important. After all, we put our money into the plan expecting it to grow, but you should not rely on it alone.
Non-guaranteed returns are based on the insurer’s participating fund performance.
If you’d like to find out more on how to look at park fund performance, check out the “Expected Rate of Return” section in our best whole life plan in Singapore article.
Additional Payout for Disability
If you were to – touch wood – suffer from total and permanent disability in your later years, the reality is that you might need to hire a caretaker and put some money into long-term care costs.
This might mean having to dip into your retirement funds.
While this is not a thought most of us want to entertain, it’s always best to err on the side of caution and be prepared before anything happens.
If you’ve already got your disability insurance covered into your retirement, then there’s no need to worry about this.
However, if you don’t, fret not! There are a few retirement annuities that cover disability, providing you with additional payouts on top of your plan’s basic retirement monthly income if you were to suffer severe disability or TPD.
One thing to note is that every plan’s definition of disability differs, so do familiarise yourself with them and select the one you’re most comfortable with before you make your decision.
Premium Payment Factors
Premium Term
The next step is to determine how you’d like to fund your plan, starting with how long you want to be paying for your plan.
There are 2 main categories when it comes to premium terms – single premium and regular premium.
As its name suggests, single premium plans essentially mean that you would need to fork out a lump sum amount of money to pay off your entire plan in one shot.
If you don’t have that much liquid cash on hand, there’s always the regular premium option.
All retirement annuities are limited pay plans, so by the time your payouts start, all your premiums would have already been paid off.
Your premium term options depend on your plan of choice. Generally, most insurers offer a premium term of 5 to 25 years, in multiples of 5.
Premium Amount
Unlike life insurance and critical illness plans, your premiums are not affected by your health, medical condition, gender, or age, etc.
Instead, your premiums are dependent on your desired retirement income, when your payouts start, and how long your payouts are expected to last.
Additionally, the usual suspects like your premium frequency and the premium term also affect the total amount you have to pay.
As a rule of thumb, the longer your premium term, the more total premiums you pay. But a shorter premium term means having to pay a higher premium at each payment.
Ultimately, it is about striking that balance between choosing a premium term you can afford comfortably at the shortest possible premium term.
Mode of Payment
Apart from paying your premiums with cash, retirement plans are unique in that they allow you to tap into your Supplementary Retirement Scheme (SRS) to fund your plan.
For those who are newer to the world of investing and financial planning, the SRS is a voluntary scheme set up by the government to encourage you to save for retirement beyond CPF.
It provides benefits such as tax relief and a basic interest rate of 0.05% per annum if you choose to do nothing and let your money sit.
However, you’re able to invest your SRS monies into certain investment instruments to make your money work harder for you. One of the best options being retirement annuities.
Not all plans have an SRS payment option and those that do usually only allow you to pay using SRS if you opt to pay by single premium.
Payout Factors
When Payouts Commence or Accumulation Period
Now we’ve come to the million-dollar question, when do you want to start sipping piña coladas by the beach?
In other words, when do you expect to stop working and kick start your retirement payouts?
Payouts only start after your premiums have been fully paid. Some insurers allow you to start your payouts immediately after and these are known as immediate annuities.
There are also deferred annuities, where you would need to wait for a certain time before your payouts commence. Known as the accumulation period, there are 2 options commonly offered. To start your payouts:
- at a certain age, or
- after a selected number of years.
If the plan offers you the option to choose the age to start your payouts, it’s as straightforward as the name suggests.
The common ages offered by most insurers are between the ages of 50 to 70, usually in multiples of 5. Some plans allow you to select an age outside of this window.
If the plan only allows you the option to select from a certain number of years, you might need to do a bit of working backward.
You will first need to determine what age you want your payouts to start, then determine what age you will pay your last premium.
The difference between the 2 is the accumulation period that you should select.
If anything, some insurers allow you to keep your payouts in your plan and not withdraw them to accumulate interest if you don’t need it at the moment.
So, look for a plan with this option if this flexibility is important for you.
Payout Period
Do you want your payouts to end after a certain period, or do you want them to last for life? The payout period is how long you want your payouts to last.
Some plans only offer 1 or 2 options while others have a range of options between 5 to 35 years.
If you’re looking for a very specific payout period like 18 years, and are adamant on this, then you should narrow down your choices to plans that offer this option.
If you’re looking for a payout period that is more common like 10 or 20 years, then most plans in the market would be suitable.
Ultimately, this comes down to personal preference again.
If you’re worried about locking in your payout period now when retirement seems to be ages away, some insurers allow you to change your payout period before your payout starts.
Payout Frequency
Last but not least, consider how often you’d like to receive your payouts.
Most plans on the market offer either the option to receive your payouts monthly or annually, but there are a select few that allow you to receive payouts on a half-yearly or quarterly basis as well.
There are merits to both monthly or annual payouts and the selected payout frequency would vary by individual priorities.
Some questions for consideration are:
- If you opt for an annual payout, do you have the self-discipline to spread it over the year? Or will you spend it in one shot?
- Do you need a large sum of money in certain months, or is your expected expenditure likely to stay constant throughout the year?
- Perhaps you have a trip planned every single year, and the cost of traveling might be more than a month’s payout, so in this case, it might be wiser to opt for an annual payout.
As most plans only offer one payout frequency option, if this factor is high up on your selection criteria, you might want to narrow down the plans to your selected payout frequency before looking at other criteria.
Earlier, it was also mentioned that some plans allow you to keep your payouts if you don’t have an immediate need for it, and withdraw certain amounts when the need arises (with a few terms and conditions).
Therefore, if you’re worried about being tied down by your choice, you can always select a plan with the option to keep or withdraw your annuities.
Others
Protection Coverage
One factor that might be a priority for some could be the plan’s insurance coverage.
As the main objective of this product is to provide you with retirement payouts and grow your money, the protection offered may not be as spectacular as compared to a life insurance plan.
While individual circumstances tend to differ, I personally feel that this factor shouldn’t be the highest on the list. But if this is important to you, by all means, go ahead.
All insurers offer basic death protection, usually the higher of:
- 101 – 105% of your total premiums paid minus any benefits paid out, or
- The surrender value
However, the above has been overgeneralised so do take a look at the plan’s policy contract to determine the exact death benefit you’re entitled to.
Certain plans also cover terminal illness and even total & permanent disability (as a lump sum payout), so it’s good to take a look if it’s one of your priorities.
Joint Ownership
Worried about what will happen to your loved ones if you go before your time?
While there is a death benefit, some plans allow you to appoint a secondary life insured to ensure the continuity of the plan.
The benefit of having your plan continue is that they can continue to receive monthly payouts, and enjoy the non-guaranteed benefits of the plan.
In comparison, if your plan doesn’t have a secondary life insured, and you were to pass on, the plan will payout the death benefit in a lump sum, and any cash accumulation will terminate as well.
Additional Features on Basic Plan
Other than what was mentioned above, certain plans also provide you with other value-added features on your base plan.
This includes features like premium waivers (on your basic plan and not as a rider), the ability to pause your premiums for a while interest-free, and others.
Don’t expect anything too spectacular like in the case of critical illness plans or life insurance plans though.
As the basic premiums of annuity plans tend to be quite high already, if the insurers add any more features to your basic plan, your premiums might shoot through the roof.
Conclusion
And there you have it, the key factors you should consider before you purchase your retirement plan and the best annuity plans in Singapore.
With all this information under your belt, we hope you’re now better equipped to go out there and build up your golden retirement nest egg.
Always remember that everyone’s dream retirement is different. While we’ve selected a few of the top private annuities by category, it is based on our personal opinion.
So, it might be possible that the perfect plan for you is not even on this list.
Still unsure which plan you should get even after the crash course? We’ve got you covered. Our network of well-versed financial advisors will take the time to understand your needs so as to recommend the best plans for you. Reach out today!
