If you are looking for guaranteed income when you retire or if you are simply researching first on the best retirement plans there are out, then this post is for you!
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...
But before that, check this video by NTUC below. I personally think it's a great message.
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.
But If You Want To Save Time, I've this summary for you....
1) AIA Retirement Saver III
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
This is the most inspiring illustration. Who wants to be a millionaire? I like that!
AXA's Retire Happy Plus solution is right above!
Ok 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
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
Overwhelmed by the details you saw?
Don't just compare the premium to projected return (if you did that), the illustrations by the insurers are not even apple-apple.
But I can get you tangible short cuts...
But before that, I'd like to share with you that I've done retirement planning strategies extensively.
I'm Josh Tan, an Independent Financial Planner.
I was the TOP candidate of my CHFC cohort and I'm qualified in this area that you are keen to solve. I think I can make a difference to you!
Don't take my word for it, check out what others have to say
So before we get in touch, I'd like to share this
What do some bankers and advisers get WRONG frequently on this topic?
1) Successful retirement planning is NOT choosing a plan to buy.
It is the process of creating passive income streams.
2) Successful retirement saving is NOT calculating a shortfall of what you want in future and start buying a plan to match it.
It is the hardest way! Period.
Just like saving $1m into CPF. Unless you have a lot of cashflow, you're NOT getting there easily.
Now, if you want to get your retirement planning done well, it may need changes to your expenses.
But first, I'd be sharing with you this e-book: "The hidden wealth growing formula".
It has ready templates that you can use right away. Simply leave your email below and I'll send you the link to download right away. See you on the other side.
Last updated on September 10th, 2018 at 09:13 am