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Retirement Planning With AVIVA MyLifeIncome & AVIVA MyRetirementChoice

How should you provide cashflow for your retirement years?

In today's post, I'd be sharing some strategies  for retirement planning using both the AVIVA MyLifeIncome & AVIVA MyRetirementChoice.

How Are Returns In A Retirement Plan Determined

When buying a participating (PAR) policy, your premiums will be pooled together and invested with premiums from other policyholders in the PAR fund.

Below is AVIVA's PAR fund performance. Because both plans in discussion are from AVIVA, they should show the same returns on the non-guaranteed portion.

Since past performance does not indicate future returns, we can only use the 4.13% average over the last 5years as a reason for estimates.

Hence, the cashflows to you from both AVIVA MyLifeIncome & AVIVA MyRetirementChoice will be estimated at the level in between 3.25% and 4.75%. Makes sense?

There are actually 3 insurers who have done a >4.75% average return over 5years (year2013-2017) on their PAR fund. Our internal team at Promiseland Independent Pte Ltd has a summary on it for internal use but actually, all insurers PAR performance is public.

It is possible for an insurer's PAR fund to deliver more than 4.75% average in its returns.

Parameters For Case Illustration

The explanation of the cashflow will be on a Male age 45.

Premium will be 5years and payout from age66 onwards.

Budgeted premium of around $12,000/y (or $1,000/m).

Both plans have other premium options and payout options to suit your circumstance.

AVIVA MyLifeIncome Projected Cashflows

This is a highly popular annuity plan. Banks such as CIMB have been marketing it.

The AVIVA MyLifeIncome is a solution to get payouts in your retirement years in addition to your projected CPF Life payouts. The payouts are also for lifetime.

In addition, you get a bequest (death benefit) that GROWS at 0.25%p.a compounded for life. 

This can be a strategic compliment to your CPF Life whereby your bequest amount (whether it's standard or basic plan) will be reducing until it eventually becomes $0.

With the planning parameters, a $12,186/y plan is a good fit

As shown below, the annual cashflow you'll get from age66 is $2,200 + projected $2,800 which works out to be $5,000.

AVIVA MyRetirementChoice Projected Cashflows

The AVIVA MyRetirementChoice pays you month cash and it's bequest is similar to CPF Life whereby it declines as you draw out.

It is one of the most flexible retirement plans and you can strategically use it to compliment any gaps in your retirement goals by defining the payout period.


With the planning parameters, a $12,180.85/y plan is a good fit

As shown below, you'll get be guaranteed from age66 a $5,760 cashflow. If we add in non-guaranteed components, a reasonable projection on annual cashflow will be up to $8,300. 

By age85, plan will mature and there will be no surrender value.

MyRetirementChoice Has A Higher Total Projected Yield At Age85

This conclusion is made if both the plans are surrendered at age 85.

It is stated in the MyLifeIncome policy the projected yield. (shown below). This yield will include your total cashflows from age66-85 and the surrender value at age85.

3.4%p.a (between 3.98% and 2.84%) will be a reasonable estimate of the yield. 

On the other hand, MyRetirementChoice could have a projected yield of 3.7%.

In addition, the guaranteed component of 2.33% is higher than MyLifeIncome.

MyRetirementChoice Also Has A Higher Projected Yield If Both Plans Are Surrendered Early

Unlike CPF LIFE whereby you can't exit without a valid reason, you can still surrender and withdraw lump sum from these plans. It is always good to know you have such an option in retirement years. 

This calculation is to help you envision the outcome if you withdraw everything out prematurely at age75.

The AVIVA MyRetirementChoice plan also gives a higher projected yield.

Retirement Plans Are Best Used For Retirement

Investmentmoats.com has done a thorough review on the AVIVA Myretirementchoice plan.

The analysis parameters were on

  1. Accumulation over 5 years.
  2. Accumulation without funding for 5 more years.
  3. Withdrawal over 10 years.

Hence, unlike the 2 illustrated above which have at least a 40year policy period, the total policy term here is only 20years.

If it was for someone at age45, it would be premium from 45-50, payout from age56-65.

In this illustration above, the final figures are similar to those mentioned in the review. 

Guaranteed yield is at 1.1% (which is lower than Singapore Savings Bond) and Total yield can be estimated at around 2.75% (half of 3.49% and 1.99%).

In such a situation, the AVIVA MyRetirement Plan is NOT outstanding as a savings vehicle.

I agree with the conclusions drawn by investment moats.com and if you are keen to read it, click here.

In summary, it is better to use this plan (or any "meant for retirement plan" by any insurer) for long term savings which will be illustrated below.


You may be better off exploring the Singapore Savings Bond. I've a video for you below and in the video

is my very own "WAG" formula, check video below for more explanation!

➡ W: Withdrawal (anytime)

➡ A: Anyone (Yes anyone!)

➡ G: Guaranteed (Capital and interest guaranteed!)

Conclusions On How To Use AVIVA MyLifeIncome and MyRetirementChoice

The AVIVA MyRetirementChoice seems to be a better option for retirement cashflows based on projected yields.

With enough compounding time, MyRetirementChoice can give you a guarantee that is more than Singapore savings bond with a fuss-free potential upside in the PAR plan performance.

On the other hand, the AVIVA MyLifeIncome solves the idea of legacy and lifetime income better. You'd massively benefit if you live past age100.


Beyond these 2 plans, there are many KEY components to retirement planning such as 

CPF LIFE, Singapore Savings Bonds and Dividend investments. 

If you're looking to find out more on retirement planning, contact me below for a preliminary discussion and I'd get in touch with you real soon to make positive changes! See you!

Last updated on October 15th, 2019 at 12:33 am

Josh Tan Jian Liang (CHFC) Principal Author

REVIEWS: https://www.josh-tan/wall-of-reviews. Practising financial planner with Promiseland Independent Pte Ltd. EXPERIENCE: More than 12years. Josh Tan is a young parent, speaker, author and founder of TheAstuteParent.

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