9 Best Retirement Annuity Plans In Singapore With Insurance
Let’s face it, securing a steady retirement income hinge on the decisions we make today. That’s why we gathered the best retirement annuity plans in the market for your dream retirement.
Establishing financial security in your senior years remains the ultimate objective. Estate planning is also essential as you become older.
Be sure to understand what to look out for in retirement annuity plans before you read this article.
To secure a guaranteed stream of income in your golden years, annuity plans are the lifeboats that will tide you through.
By the way:
When was the last time you've done a proper Investment plan or reviewed your investments?
In Singapore, having a proper investment plan could spell the difference between a rich quality of life for you & your loved ones and a not so good quality of life...
And people are starting to realize this.
Here're 7 reasons why having an investment plan is essential!
Summary Comparison Table Of The 9 Best Retirement Annuity Plans In Singapore
Here is the comparison of features between different retirement annuity plans in Singapore.
Here’re the best plans for a number of different factors
1. NTUC Income Gro Retire Flex
Brief Description
Gro Retire Flex is one of the best retirement plans that guarantees you will have a consistent stream of income when you retire and gives you the freedom to pick your preferred amount and length of payouts.
Benefits & Coverage Available
Take advantage of a consistent income during your retirement years. In order to allow you to enjoy your retirement to the fullest, you will receive monthly cash benefits as well as a monthly non-guaranteed cash bonus during your payout term.
With NTUC Income Gro Retire Flex, you can rest easy knowing that your loved ones are taken care of in the event of your death or terminal illness.
a.) Death or Terminal illness benefit
With protection in the case of death or terminal illness, your loved ones can receive 105% of all net premium(s) paid and 100% of the terminal bonus. In order for your insurance to continue in the event of your death, you may also add a loved one as a secondary insured.
b.) Accidental Death benefit
Enjoy additional security with Disability Care Benefit and Accidental Death Benefit! The insurance pays up to 105% of all net premium(s) in addition to the death benefit in the case of accidental death (before the anniversary occurring immediately after you turn 70).
Coverage provided by the Accidental Death Benefit and Disability Care Benefit, will apply for regular premium policies.
c.) Retrenchment benefit
Last but not least, obtain assurance in the case of a retrenchment. With NTUC Income Gro Retire Flex’s Retrenchment Benefit, you will not be required to pay premiums for your policy for six months if you are laid off and remain jobless for three consecutive months.
During that period, you will continue to get the same coverage, giving you a peace of mind as you seek for work.
You can opt to postpone paying your policy's premiums for the following six months if you are still unemployed at the conclusion of the fifth month, at which time they are waived.
This perk is only available for insurance with regular premiums.
Payout Period Options
You can select a payout period of 10, 20 years or till age 100.
Payout Age Options
Enjoy having the freedom to decide when you want to retire. You may choose and modify the start date for your monthly cash disbursements (10, 20 years or till age 100).
Premium Term Options
You can opt to begin collecting your monthly cash payouts after an accumulation time ranging from 5 to 50 years for single premium plans, or from 10 to 50 years for regular premium plans, depending on your lifestyle needs.
Best Retirement Plan For Disability
As aforementioned, NTUC Income Gro Retire Flex provides additional security with Disability Care Benefit.
You can obtain additional protection with Disability Care Benefit if you develop any of the following conditions as a result of an accident or illness: loss of hearing, speech, sight, or use of one limb.
Throughout the payment term, an additional sum if equal to 50% of the monthly cash benefit will be paid on top of each such benefit. You may also enjoy waiver of future premiums, and a lump sum benefit.
2. HSBC Life Retirement Income II
Brief Description
Receive monthly financial help from HSBC Life Retirement Income II, one of the best retirement plans, so that you may honor the commitments you most eagerly anticipate.
Benefits Available
HSBC Life Retirement Income II is a retirement program that gives you the option of receiving guaranteed monthly payments along with potential monthly cash incentives.
a.) Retrenchment benefit
With the Unemployment Support Benefit, you can choose to postpone premium payments for up to 365 days in the event of unemployment.
b.) Waiver of Premium Benefit
If you or your spouse receives a diagnosis of Total and Permanent Disability or if your spouse passes away, all future premiums will be waived.
c.) Mobility Care Benefit
In addition, if you are diagnosed with severe rheumatoid arthritis or osteoporosis with fractures, you may be eligible for a single lump sum payment of 20 times the guaranteed monthly payout (up to S$25,000) under the Mobility Care Benefit.
Payout Period Options
Make your own retirement plans. Make your policy more specific so you can go closer to realizing your retirement goals.
The income payout period might be 10, 15, 20, or up to 99 years old.
Payout Age Options
There are four alternatives for retirement age: 55, 60, 65, or 70 years old.
Premium Term Options
You have three options for the Premium Term: single, 5, or 10 years.
Best Retirement Plan For Chronic Illness Care
Chronic illness refers to Loss of Independence, Idiopathic Parkinson’s Disease, Alzheimer's disease/severe dementia, or Major Head Trauma, for instance.
Keep your life's quality high. Get extra rewards that are guaranteed if you get unforeseen diseases.
If you are diagnosed with Loss of Independence, Idiopathic Parkinson's Disease, Alzheimer's disease/severe dementia, or Major Head Trauma, the Chronic Illness Care Benefit entitles you to an extra 100% of the Guaranteed Monthly Payout.
As it provides 100% of the Guaranteed Monthly Payouts, HSBC Life Retirement Income II is the best retirement plan for chronic illness care.
Best Retirement Plan For Death & Terminal Illness Coverage
This is a table comparing the death coverage amount among all plans.
If you pass away or are diagnosed with TI on or after the Retirement Age, you will receive 110% of the total Premiums paid less all Monthly Income declared and 12 times the Guaranteed Monthly Payout.
Additionally, you will receive a Terminal Bonus and more.
3. Prudential PRUActive Retirement II
Brief Description
PRUActive Retirement II is a one-of-a-kind, highly adaptable strategy created to provide you independence, financial stability, and the ability to retire as you choose.
Benefits Available
PRUActive Retirement II’s Step-up Income lets you take advantage of a steady monthly income. Once payment starts, you will get a guaranteed monthly income as well as a non-guaranteed part that can get richer over time.
a.) Total & Permanent Disability benefit
You will get additional monthly income assistance and all upcoming payments will be eliminated in the event that an accident-related disability arises.
b.) Surviving Spouse and Joint Ownership Benefit
With the Surviving Spouse and Joint Ownership Benefit, your designated spouse, who is also a joint owner, will take over ownership of your policy in the case of your passing.
Payout Period Options
The choice of payout period ranges from 10, 15, 20, 25 or 30 years.
Payout Age Options
Set the beginning and ending dates of your payments. You can begin receiving rewards as early as age 50 and can do so for up to 30 years.
Premium Term Options
Select a premium term that is convenient for you. Premium terms might be customized to fit your particular financial situation. Spread it out over a longer length of time or pay it all at once in the first year.
4. AIA Retirement Saver (IV)
Brief Description
AIA Retirement Saver (IV) may be customized in 3 simple steps to meet your future and move you toward your retirement objectives at every stage of life.
Benefits Available
At the retirement age you have chosen, every dollar you have put in is guaranteed, so relax and enjoy your golden years!
a.) Defer payment of premiums
With the Premium Pass Option, you may benefit from 12 consecutive months of interest-free deferred premium to make sure that, in the event of your layoff, your AIA Retirement Saver (IV) plan will not be affected.
Your choice of 15 or 20 years will be used to pay out this guaranteed income stream, which will augment your CPF and increase your financial independence.
b.) Increasing monthly dividends
Starting at your chosen retirement age, begin taking advantage of prospective monthly dividends. Every year, the dividends will rise by around 5%, enhancing your guaranteed retirement income stream and reducing the effects of inflation.
c.) Receive on-time terminal dividend
Additionally, enjoy a single terminal dividend (non-guaranteed). Upon claim, maturity, or surrender of the insurance, you can get a bonus for your retirement savings or a little gift for your family.
Payout Period Options
Select the length of time you want to receive your preferred retirement income to supplement your desired retirement lifestyle over a 15 or 20 year timeframe.
Payout Age Options
You may decide when to begin collecting your retirement income.
Always desired an early retirement? You can, with the option of starting to receive retirement income at age 50.
Premium Term Options
Choose between paying your premiums all at once in a lump amount or spreading them out over a longer period (5, 10, or up to 5 years before the retirement age of your choice).
Best Retirement Plan For Total Returns
With the following potential returns to enhance retirement income, AIA Retirement Saver (IV) is the best retirement plan for total returns.
In a scenario we crafted to compare all 9 plans, AIA Retirement Saver (IV) delivered the greatest returns.
The scenario assumes that a male, non-smoker who is 45 wants to receive payout at 65 for 20 years.
He pays premiums for 10 years.
The total returns are projected at a 3% & 4.25% Illustrated Investment Rate of Return (IIRR) for the lower & higher rate respectively.
As you can see, AIA Retirement Saver (IV) has the greatest total returns at $193,070 or $279,455.
This is thanks to its non-guaranteed returns that promise a one-time terminal dividend and increasing monthly dividends.
Note that these figures may vary depending on the individual. It is best to consult a financial advisor to get an accurate figure.
5. Great Eastern GREAT Retire Income
Brief Description
When you include Great Eastern GREAT Retire Income in your retirement planning, you can relax knowing that you will always have a reliable source of monthly income.
Receive a monthly cash dividend as well as the possibility of a cash bonus from Great Eastern GREAT Retire Income, a participating endowment plan. You have a choice in the premium term, retirement age, and length of payment period.
Benefits Available
a.) Monthly Cash payout & Bonuses
When you reach the retirement age of your choice, you will start receiving monthly cash payments and possible bonuses. At policy maturity, the total retirement income benefits might be five times the total premiums paid.
b.) Loss of independence (LOI) benefit
If you are unable to do two or more Activities of Daily Living (ADLs) throughout the income period, you will get additional monthly reimbursements as insurance.
Get LOI income benefit of up to 100% of your monthly cash payout guarantees, with a monthly ceiling of S$5,000.
Payout Period Options
Receive payouts for 10 or 20 years. Up to six months before the first distribution, you can alter the income period at any moment.
Payout Age Options
You can start payouts at age 56, 61, 66 or 71 years old.
Premium Term Options
This plan has flexibility at its heart. You may choose your preferred premium payment term of 5, 10, 15 or 20 years.
Best Retirement Plan For Guaranteed Payout
In a scenario we crafted to compare all 9 plans, Great Eastern GREAT Retire income delivered the greatest guaranteed returns.
The scenario assumes that a male, non-smoker who is 45 wants to receive payout at 65 for 20 years.
He pays premiums for 10 years.
The total returns are projected at a 3% & 4.25% Illustrated Investment Rate of Return (IIRR) for the lower & higher rate respectively.
As demonstrated in the table above, Great Eastern GREAT Retire Income has the potential to provide the biggest guaranteed payoff of $135,600. Hence, it is the best retirement plan for guaranteed payouts.
6. Enrich Retirement
Brief Description
When you retire with Enrich, live the lifestyle you have always wanted.
Benefits Available
a.) Inflated payout option
Enrich Retirement offers inflated distributions for monthly retirement income.
Receive an increment of 2% p.a. of the monthly retirement income payment, starting from the second policy year of receiving the monthly payout.
b.) Lump sum maturity benefit
The lump sum maturity benefit, in addition to your monthly retirement income, gives you additional financial stability.
c.) Special Conditions Benefit
Apart from the Death Benefit, you may use Enrich Retirement’s Special Conditions Benefit to protect yourself from conditions like Alzheimer's disease or severe dementia, idiopathic Parkinson's disease, or osteoporosis with fractures.
In the event that you are given a first-time diagnosis of any of these conditions, you will be given a lump sum payment of S$10,000.
Payout Period Options
When you reach your chosen retirement age, you will begin receiving a monthly retirement income that includes guaranteed and non-guaranteed payment for 10 or 20 years, beginning 1 month after the policy anniversary.
Payout Age Options
Choose your preferred retirement age of 60 or 65.
Premium Term Options
Select the premium term of your choice — 2, 5, or 10 years.
7. China Life Prosperous Retirement
Brief Description
After a lifetime of arduous labor, do you ever dream of a tranquil and happy retirement? Do not worry. All you need to do is use China Life Prosperous Retirement to plan ahead!
Benefits Available
a.) Receive lump sum payout upon retirement
When you retire, China Life Prosperous Retirement provides you a lump sum payment to support your aspirations. This payout has no impact on your subsequent monthly incomes and is 24 times of the sum insured.
b.) Retrenchment benefit
In the event that you and your family may have to endure a retrenchment,
China Life Prosperous Retirement will provide a lump sum compensation to assist you. Your monthly payouts is unaffected by this.
c.) Receive lump sum payout upon policy maturity
You will also receive an additional guaranteed lump sum payout and a further non-guaranteed bonus at policy maturity to help you boost your retirement savings.
d.) Increasing payouts
The guaranteed retirement income you get will increase and might lessen the effects of inflation.
e.) Major Cancer coverage
Additionally, a lump sum payout will be made when you receive a significant cancer diagnosis to assist you in covering the expense of your treatments.
f.) Death And Terminal Illness Coverage
China Life Prosperous Retirement will reimburse you for 108% of all premiums paid in the event of your death or terminal illness, plus an additional sum to support your relatives
Payout Period Options
This guaranteed income, which supplements your CPF and gives you financial independence, is paid over your choice of 10, 20, or 30 years.
Payout Age Options
One can decide when to start receiving retirement income payouts – age 55, 60, 65 or 70 years old.
Premium Term Options
You may choose to pay premiums regularly over 5, 10, 15 or 20 years.
8. Aviva MyRetirementChoice (III)
Brief Description
By providing you with a monthly income beginning at your selected retirement age, MyRetirementChoice III enables you to retire with more assurance.
Benefits Available
a.) Disability benefit
To assist you in managing a partial disability, Aviva MyRetirementChoice (III) offers extra reimbursements.
If you are receiving your retirement income and are unable to conduct at least 2 out of the 6 Activities of Daily Living (ADLs), the Care Income Benefit will provide you 50% of your guaranteed monthly income during payout period.
If you are unable to conduct at least 3 out of the 6 ADLs, you will receive an additional 100%% of your guaranteed monthly income during payout period.
You will also get to choose to turn your monthly disability payouts into a one lump payment for bigger one-time costs.
b.) Receive lump-sum payout & monthly cash bonuses upon retirement
There may be potential bonuses to increase your earnings. Non-guaranteed bonuses will be paid to you as a lump payment at the retirement age of your choice, which can be converted to monthly installments. You will also receive a monthly cash bonus.
c.) Death & Terminal illness benefit
Receive a lump-sum payment of 105% of the sum assured in the case of death or terminal illness.
Payout Period Options
Choose your monthly payout period – from 5 to 35 years (at a 1-year interval).
Payout Age Options
You can select any retirement age that you prefer. The last age at which you may receive the Monthly Total Income must be less than or equal to 99 years old.
Premium Term Options
The pay premiums term options range from 5, 10, 15, 20 to 25 years.
Best plan for flexibility
There are several permutations available with Aviva MyRetirementChoice (III), making it the most versatile plan.
For instance, you can select any age to start receiving your payouts (<99), and the payout term choices available with Aviva MyRetirementChoice (III) range from 5 to 35 years.
Therefore, Aviva MyRetirementChoice (III) is the most adaptable plan - otherwise known as the best plan for flexibility.
9. Manulife RetireReady Plus (III)
Brief Description
With customizable choices provided by Manulife RetireReady Plus (III), you get to pick how your retirement goals will come true.
Benefits Available
a.) Multiple coverages available
With Manulife RetireReady Plus (III), you are provided Protection for Death and Terminal Illnesses (TI); and Waiver of Premium on Total and Permanent Disability (TPD) for regular premium policies only.
b.) Loss of independence benefit
Enjoy the income benefit for loss of independence. Depending on the severity, you may get up to an extra 100% of your guaranteed monthly income.
You will begin receiving the Guaranteed Monthly Income (GMI), one month following the policy anniversary, as soon as he or she meets the chosen retirement age, and will continue receiving it until the end of the chosen income payout term.
c.) Premium freeze
With the premium freeze option, you may apply to stop paying premium for 1 year while keeping your policy in force. This can be activated up to 2 times throughout the policy.
Payout Period Options
With adjustable choices, such as getting Guaranteed Monthly Income over your choice of 5, 10, 15, or 20 years, or a lifetime (to age 120), you get to pick how your retirement aspirations will turn out.
Up to two years before the retirement age you have chosen, you can change the length of the income payment term to suit your changing needs.
Payout Age Options
You can choose your preferred retirement age, which ranges from 50 to 70 years old.
Premium Term Options
Single, Premium, or 5, 10, 15, or 20 years are the premium payment terms that are offered.
Best Retirement Plan For Retrenchment
The best retirement plan for retrenchment is Manulife RetireReady Plus (III).
Manulife RetireReady Plus (III) provides you with a Retrenchment Payout Benefit that allows you to receive a lump sum payment equivalent to 50% of annual premiums paid in the event of your retrenchment, minimizing interruption to retirement aspirations.
Conclusion
Each retirement annuity plan has its own advantages.
If you’re unsure as to which retirement annuity plan you should pick, it would be smart engage with a financial advisor.
Contrary to their reputation for pushy sales tactics, financial advisers can help pre-retirees cut through the noise.
They arrange retirement plans in your best interest, ensuring you retire comfortably.
We hope that this article has given you more information to assist you make the best decision for you, whether or not you decide to enroll in a retirement annuity plan.
Additionally, read our step-by-step tutorial here if you would like to learn how much you’d need to retire in Singapore.
