Looking for guaranteed income when you retire?
This post is on the best retirement plans in Singapore from AIA, AVIVA, AXA, Manulife & NTUC Income.
What a retirement plan gives you?
With a retirement plan, you get capital guarantees.
In addition, you get guaranteed income, ideally in a monthly mode so that you can cover your core expenses. Kind-of like a CPF retirement income (there's a cap to it).
It's also kind-of like your risk free passive income. I'll explain more in awhile.
If you are searching for market upside... timing the market .... flexibility in cashing out.... this is NOT for you.
It is to get assured HASSLE FREE Income paid out per month guaranteed... capital guaranteed...
What are the FIVE best retirement plans NOW!
They are the following (You may click to get the brochures)
1) AIA Retirement Saver III : III is the newest version
2) AVIVA MyRetirement Choice : Choice is the newest version with most flexibility
3) AXA Retire Happy Plus : Plus is the newest version
4) Manulife Retire Ready Plus : Plus is the newest version. Sold frequently in DBS
5) NTUC RevoRetire Retire : Previous version was a different plan name
If you like crunching information, look through the brochures.
All the policy legal definitions, complex plan illustrations and insurance terminology is there.
Quick summary on the 5 plans for you with a focus on guaranteed income
1) AIA Retirement Saver III: SRS approved!
There are dividends and retirement income paid per month.
Only the retirement income is guaranteed. Dividends can vary.
The AIA Retirement Saver III also pays a bequest amount that your family can receive which is the "terminal dividend".
If you invested a premium of $150,600, you will get total of $419,650 (4.75% projection)
2) AVIVA MyRetirement Choice
This is diagram above is not inspiring.
But still, this the AVIVA MyRetirement Choice is a highly rated plan, I'll tell you why in awhile.
Why the need for some many terms guaranteed monthly income GMI, monthly cash bonus MCB, additional monthly income AMI, care income benefit?? Only GMI is guaranteed actually.
It is to allow you to get maximum customisation. You can choose on premium duration and payout duration.
You can choose lump sum benefit at maturity or you can just maximise your monthly benefit.
If you invested a premium of $147,240 you will get total of $449,328 (4.75% projection) without factoring care income benefit.
3) AXA Retire Happy Plus: SRS approved!
I've recommended this plan to a private client before who did her first SRS contribution of $15,300 last year. This plan allows you to start your investment at a lower entry level.
What you get is "Yearly increasing retirement income" if you want to factor in inflation into your planning.
CPF Life also has an escalating benefits option now.
If you invested a premium of $456,452 you will get total of $1,094,377 (4.75% projection).
4) Manulife RetireReady Plus: SRS approved!
Manulife RetireReady Plus is also highly customizable on premium duration and payout duration. You can choose lump sum benefit at maturity or you can just maximise your monthly benefit.
If I'm not wrong, this is the best disability coverage addition - 50% disability payouts with a 2/6 ADL disability condition.
If you invested a premium of $126,848, you will get total of $343,696 (4.75% projection)
5) NTUC Revoretire
The guaranteed yield of 2.7% on the brochure is for quite an unlikely circumstance IMO. For most situations, the NTUC Revosecure's guaranteed yield seems to lags other plans.
Having said that, it has some disability benefit (albeit a narrow definition!)
If you invested a premium of $130,512 you will get total of $415,152 (4.75% projection).
The views and opinions expressed in this article are those of the author and do not represent the views of any other organisation.
Image credits: Plan brochures
Any further retirement plans that can be bought by SRS?
Attached above are other possible plans that we've compared for private clients.
Retirement plans that can be bought from SRS have to be single premium.
There are other plans that we've compared before and if you're keen, contact me below for a retirement planning discussion.
Conclusion and how to start your retirement plan!
I'd also like to share this quick video below with you.
If you have is on SRS savings (which is planned for retirement uses) and if you haven't invested much into equities/shares then do so with SRS.
But if you have bought some investments already, then instead park your SRS savings into the retirement plans mentioned. You get that 3-4.5%p.a growth and when planned properly, it gives you guaranteed income streams when you need it.
Watch video below for full explaination on ideas to invest your SRS!
If you're looking to find out more on retirement planning, email to firstname.lastname@example.org or WhatsApp me below for a preliminary discussion
Last updated on December 17th, 2019 at 06:44 pm