Everyone has their own ideal retirement lifestyle, be it to lead humble lifestyle, or to travel the world without a care. With the rising cost of living in Singapore, planting the seeds early for your retirement is crucial to achieve your goal. For Singaporeans and PRs, we will have to set aside a minimum sum for our CPF Retirement Account at age 55. However, one of the concerns is that our CPF OA may not be substantial as majority will utilitse their CPF OA to pay off housing loans. As such, it could be possible that we are reliant on our own CPF SA to form majority of your retirement account at 55. Planning for your own retirement is more crucial than ever. Here are 3 of the top retirement plans you may consider to ensure you have guaranteed stream of income coming in during your golden years.

 

 

Table.1 Comparison of Manulife RetireReady Plus III, Singlife Flexi Retirement and Income Gro Retire Flex Pro

Plan Manulife RetireReady Plus III Singlife Flexi Retirement Income Gro Retire Flex Pro
Premium Term Option SP/5/10/20 10/15/20/25 SP/5/10/20/25/30
Accumulation period Till age 50/55/65/70 0 – 40 years 5 - 50 years
Death/TI benefit 105% of premiums paid (less any GMI payout) 105% of premiums paid (less any GMI payout) 105% of premiums paid (less any GMI payout)
Premium waiver upon TPD Yes Yes Yes
Additional Income benefit in the event of Disability Partial Disability of 2 ADL: 50% of chosen GMI
Partial Disability of 3 ADL: 100% of chosen GMI
Partial Disability of 2 ADL: 50% of chosen GMI
Partial Disability of 3 ADL: 100% of chosen GMI
100% of chosen GMI upon Disability Care benefit*
Flexibility to change Insured NA Yes Yes
Retrenchment Benefit Receive 50% of annual premium NA Option to stop premium for 6 months
Premium Freeze option Option to pause premium for 1 year NA NA
Additional Features Flexibility to change income payout period Fast Forward Option (FFO) in event of partial disability NA

*Disability Care benefit refers to Loss of use of one limb, Speech, Sight of one eye, or hearing

 

 

Table.2 *Comparison of Retirement plans for 35 year old Female, looking to receive guaranteed monthly income of $500 at age 60 for 20 years*

Plan Manulife RetireReady Plus III Singlife MyRetirementChoice III Income Gro Retire Flex
Annual Premium $9,269.01 $8,734.55 $8,743.45
Premium Term 10 years 10 years 10 years
Total Premium Paid $92,690.10 $87,345.50 $87,435
Payout Age 60 years old 60 years old 60 years old
Payout Period 20 years 20 years 20 years
Guaranteed Monthly Income (GMI) $500 $500 $500
Non-Guaranteed Monthly Income (@4.25% projections) $684.70 $596.83 $705.65
Total Monthly Income $1,184.70 $1,096.83 $1,205.65
Total Amount received $284,328 $263,239 $289,356
Guaranteed Yield 0.85% p.a 1.05% p.a 1.05% p.a
Total IRR @4.25% projections 3.79% p.a 3.74% p.a 4.08% p.a

*Disclaimer: Illustration above is just a single permutation. Premium and yield will vary accordingly based on individual age and retirement needs.

 

 

Conclusion

Why you may like Manulife RetireReady Plus III:

  • Key Features: Manulife RetireReady Plus III provides financial flexibility in the form of premium freeze option and retrenchment benefit. With the impact of Covid-19 on the economy and rising inflation, job stability is a factor to consider especially when committing to a long term plan. The choice to change your pay-out period may also come in handy if your retirement plans change in future.
  • Secondary Feature: In the event of disability (which may impose a risk as you age); the plan will provide an additional guaranteed income to you to care for any additional expenses.

Why you may like Singlife Flexi Retirement:

  • Key Features: Singlife Flexi Retirement has one of the higher guaranteed yield to maturity. With their flexibility in choice of accumulation period, it allows you to receive your income payout at an earlier age.
  • Secondary Feature: In the event of disability (which may impose a risk as you age); the plan will provide an additional guaranteed income to you to care for any additional expenses. There is also the Fast Forward Option which allows you receive a lump sum amount instead of additional monthly income.

Why you may like Income Gro Retire Flex Pro:

  • Key Features: Income Gro Retire Flex Pro has one of the higher guaranteed, as well as non-guaranteed projected yield to maturity. The plan also provides a financial flexibility to pause your premium in the event of retrenchment.
  • Secondary Feature: Under their Disability Care Benefit, the claim definitions maybe less stringent as compared to inability to perform ADL. In addition, it pays 100% of chosen GMI.

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