best retirement plan singapore

Your Guide to the Best Retirement Plans in Singapore

Finding a retirement plan that will provide you with a sustainable retirement income is the key to financial security in later life. The best retirement annuity plans should provide a guaranteed monthly income for many years or offer you the chance to access a lump sum payout when you need it.

Retirement planning is incredibly important, which is why many Singaporeans start thinking about retirement long before they reach retirement age. Determining your desired retirement income, what level of monthly payouts you’d like to receive and how long you’re anticipating your retirement period to be can help you get a head start with your dream retirement planning.

In this article, Instant Loan reviews the best retirement plans in Singapore that offer guaranteed income, capital guarantees, and tons of other great benefits. That said, you might wish to speak to a financial advisor when deciding which retirement saver plan is the best fit for your retirement years.

The Importance of Planning Ahead Before You Hit Retirement Age – Secure a Reliable Retirement Income with Retirement Annuity Plans

There are several reasons you should start coming up with a retirement plan as early as possible. Many of us spend a large portion of our lives imagining a dream retirement of luxury living, but the best retirement lifestyle we can possibly imagine can only be achieved if we start our retirement savings early.

What’s more, many of us overlook the fact that the future may hold unforeseen or unpredictable circumstances. Perhaps you might be affected by a total and permanent disability and require a disability care benefit or monthly disability payout – this would need to be factored into your retirement plan. The same goes for ensuring your family will receive some kind of death benefit from life insurance plans, too.

Ultimately, all good retirement annuity plans should enable you to live the dream retirement you’ve always imagined, while simultaneously insuring you against any unforeseen circumstances. As a bare minimum, your retirement plan should:

  • Provide you with a guaranteed monthly income from your preferred retirement age.
  • Offer monthly payouts that are at least cover your costs and expenses in terms of housing and debts.
  • Cover any medical or health-related costs, too (i.e., the policy should offer some kind of care income benefit).
  • Enable you to access your desired retirement income and lead the lifestyle you’ve been dreaming of.

 

Things to Consider When Choosing a Retirement Plan – Retirement Income Terms, Lump Sum Payout Amounts, and More

Above we outlined the most basic requirements of a good retirement plan, but there are a bunch of other important things you’ll want to consider in more detail when selecting the perfect retirement plan to suit you. Here are the things you should be thinking about:

1. Guaranteed Payout Terms in Retirement

The amount of money or guaranteed income you’ll get should really be your top consideration when choosing a retirement plan. In most cases, your guaranteed income will be based on three factors:

  • The single premium or annual premium amount you pay for your retirement plan.
  • The term or retirement payout period (i.e., how many retirement years you’ll enjoy).
  • The accumulation period (i.e., the amount of time you spend paying into retirement savings).

Naturally, a retirement plan with a higher single premium or annual premium will offer higher guaranteed payout terms, while a longer income payout period will result in more money paid out overall, and a lengthier accumulation period will allow your nest egg to compound for longer.

2. Flexibility and Adjustability

A good retirement plan should also be flexible. You never quite know whether you’ll want to retire earlier than originally planned or, conversely, extend your annuity plan for a longer period of time.

Financial advisors can help you with this, but generally speaking, you’re going to want a retirement plan that enables you to choose a suitable income payout period and will guarantee lifetime payout terms for as long as you live.

Some plans may also give you the option to commence your monthly payouts early if you find yourself needing your desired retirement income sooner than was initially planned.

3. Different Methods of Lifetime Payout

Every retirement plan is different regarding how and when income payout transactions are made to you. While most retirement plans offer monthly payouts, other retirement annuity plans may require you to receive a pre-agreed amount for a set payout period and later reward you with a lump sum payout instead.

The important thing is to consider exactly when you might need cash for your various post-retirement commitments. While receiving a monthly guaranteed income will likely be the best fit for most circumstances, lump sums could be more suitable for others. Compare the best retirement plans available and choose accordingly.

4. Affordability and Retirement Savings Potential

A big part of all retirement plans rests with you – you need to save adequate retirement funds over the years to fund your future premiums and desired post-retirement lifestyle. Starting to save money early is the best strategy, as starting later will require you to set aside larger sums more frequently to reach your goals.

On top of this, you should think about things like inflation and how this may affect your pre-retirement savings. If you let your money idle or invest in low-interest accounts, you might not accumulate much above Singapore’s currently rather high rate of inflation – so invest wisely and consider diversified investment portfolios that pool together different types of funds.

Using your lifelong payout from your CPF Life account can be a great way to supplement your later years – but CPF savings seldom cover everything, which is why retirement planning beyond just holding a CPF retirement account is absolutely vital.

5. Speaking to a Financial Advisor

Let’s face it, personal finance and financial planning are complicated fields, and comparing your own retirement saver and annuity plans can quickly become overwhelming. A financial advisor or financial planning expert can help you find an appropriate retirement annuity plan or private annuity plan and answer any burning questions you may have about future premiums or retirement plans.

happy elderly couple talking with agent

12 Best Retirement Plans and Retirement Annuity Plans in Singapore

Now you know the basics of what to expect from a retirement plan and what you should be thinking about when comparing the best retirement annuity plans currently available, let’s look at what’s on the market right now. Here are Instant Loan’s favorite retirement plans in Singapore:

Retirement Plan Pros  Cons

NTUC Income Gro Retire Flex

  • High guaranteed returns 
  • Flexible and easy to modify
  • 100% capital guaranteed
  • Enjoy an NTUC Income Disability Care Benefit 
Disability illness payout is lower than competitors’
AIA Retirement Saver III
  • Monthly dividends increase at 5% p.a.
  • Potential retirement plan yield of 4.73%
  • Non-guaranteed returns available
  • Capital guaranteed
Limited to 15 and 20 year options only
SingLife MyReitrementChoice III
  • Flexible retirement age
  • 100% capital guaranteed at maturity
  • Non-guaranteed bonus available
  • No health underwriting required

Minimum 5-year tenure

CPF is ineligible

ManuLife RetireReady Plus III
  • 100% principal guaranteed
  • Projected return rate of 3.25 to 4.75%
  • 50% retrenchment payout
  • Single premium option available
  • CPF Life payments accepted
Limited retirement age options
AXA RetireTreasure II
  • Get back 101% of the total premiums paid
  • Use your CPF Life CPF savings
  • Get a premium waiver in unexpected circumstances
  • Add a supplementary retirement scheme to assure a secondary life
Restricted to annual payouts only
Singlife Aviva MyLifeIncome II
  • High annual premium payouts of up to 6.35%
  • CPF Life and SRS funds are eligible
  • Choose a premium payout period of between 3 and 25 years
  • Single premiums also available
Death benefit coverage is limited
Prudential PRUActive Retirement II
  • Start payouts from age 50 to 90
  • Freedom to withdraw or invest payouts whenever
  • Non-guaranteed returns available
  •  Adjust your payout period mid-plan
Payout periods are a bit limited
Tokio Marine Nest Egg Flexisaver II 
  • Easy to get started
  • No medical underwriting required
  • Monthly cash benefit terms are straightforward
  • Generate higher returns than with regular bank accounts
Insurance death benefit isn’t so diverse
Great Eastern GREAT Retire Income
  • 10 to 20-year plans available
  • Both guaranteed and non-guaranteed bonuses on offer
  •  50% additional guaranteed payout monthly for LOI
  • Capital guarantee included
Retirement ages aren’t very flexible
Tokio Marine TM Retirement GIO Plus II
  • Save a short-term premium over just five years
  • Get regular cash payouts
  • Payouts start immediately
  • Enjoy insurance options with no medical underwriting needed
No lump sum options on offer
China Taiping i-Cash III
  • Get regular cash payouts until age 85.
  • Choose between five and 10-years
  • Simple application process
  • Medical underwriting not required
Limited liquidity and flexibility
China Life Lifetime Income
  • Lifetime yearly income with 100% capital guaranteed
  • Hassle-free applications
  • Get financial protection against death and terminal illness
  • Earn 0.8% guaranteed and 5.4% non-guaranteed

Only 3 benefit riders available

 

1. NTUC Income Gro Retire Flex Best Retirement Plan for High Guaranteed Retirement Income

NTUC Income Gro Retire Flex is our favorite retirement plan for high monthly guaranteed income. The NTUC Income Gro Retire Flex plan lets customers choose their preferred retirement age, plan term, and retirement payout period with ease. The NTUC Income Go Retire Flex plan also boasts strong monthly income potential and ample disability benefit coverage.

What We Like About NTUC Income Gro Retire Flex

  • High guaranteed returns – 2x monthly guaranteed income.
  • Flexible retirement age, income payout period, and annual premium term.
  • 100% capital guaranteed at retirement age.
  • NTUC Income Disability Care Benefit offers additional lump sums.
  • Permanent disability benefit valid with loss of limb, speech, sight, or hearing.

What We Don’t Like About NTUC Income Gro Retire Flex

  • NTUC’s Disability Care Benefit has a lower disability illness payout than competitors.

Learn more about the NTUC Income Gro Retire Flex retirement plan here.

2. AIA Retirement Saver III – Best for Beating Inflation

If you’re looking for a retirement plan of either 15 or 20 years with a potential maturity yield of 4.73%, consider the AIA Retirement Saver plan. You can earn monthly dividends at great rates to beat inflation with this plan, too – making it perfect for beating Singaporean inflation.

What We Like About AIA Retirement Saver III

  • Monthly dividends can increase at an inflation-beating 5% p.a.
  • Potential retirement plan yield of 4.73%.
  • Non-guaranteed returns are potentially available via extra bonuses.
  • Capital is guaranteed with this plan.

What We Don’t Like About AIA Retirement Saver III

  • Monthly income payout period is limited to 15 or 20 years only.

Learn more about the AIA Retirement Saver III retirement annuity plan here.

asian family taking elderly on a stroll in the park

3. Singlife Aviva MyRetirementChoice III – Best for Retirement Age Flexibility

Aviva’s relatively new MyRetirementChoice III plan is one of Singapore’s most popular retirement annuities thanks to its fully-customizable nature. Customers get 100% of their principal guaranteed when they reach retirement age, and an impressive care income benefit package is thrown in for good measure.

What We Like About Singlife Aviva MyRetirementChoice III

  • Ultimate flexibility to choose your retirement age.
  • 100% capital guaranteed returns at maturity.
  • Claim a non-guaranteed bonus as a lump sum.
  • No health underwriting is required for the disability care benefit.

What We Don’t Like About Singlife Aviva MyRetirementChoice III

  • Minimum five-year payment tenure.
  • CPF Life savings cannot be used.

Learn more about Singlife Aviva MyRetirement Choice III retirement annuities here.

4. ManuLife RetireReady Plus III – Best for Projected Payouts

Whether you’re looking for a flexible income payout period, the freedom to choose to retire at 50, 60, 65, or 70 years old or you just want to enjoy proper financial planning and well-projected payouts, Manulife RetireReady Plus III offers a whole bunch of great benefits. You can even enjoy a retrenchment payout benefit worth up to 50% of your premium.

What We Like About ManuLife RetireReady Plus III

  • 100% principal guaranteed when you retire.
  • Projected return rate of 3.25 to 4.75%.
  • 50% retrenchment payout benefit on offer.
  • Single premium option and CPF Life payments available.

What We Don’t Like About ManuLife RetireReady Plus III

  • You can only choose to retire at 50, 60, 65, or 70 years old.

Learn more about ManuLife RetireReady Plus III retirement annuities here.

5. AXA Retire Treasure II – Best for Lump Sum Payout Value

Anyone looking for a plan that pays out a lump sum once it reaches maturity will love AXA Retire Treasure II. This adaptable plan is also a great fit for high-income individuals who want to secure guaranteed payouts over 10, 15, 20, or 25 years of their life – or even a much longer lifetime payout.

What We Like About AXA Retire Treasure II

  • Get 101% of total premiums paid against terminal illness or death.
  • Fund this plan using your CPF Life CPF savings.
  • Enjoy a premium waiver when unexpected events occur.
  • Add a supplementary retirement scheme to assure a secondary life.

What We Don’t Like About AXA Retire Treasure II

  • Retirement income is paid as a yearly lump sum, which won’t suit everyone.

Learn more about the AXA Retire Treasure II plan here.

6. Singlife Aviva MyLifeIncome II – Best for Lifetime Payout Income

Anyone whose primary retirement goal is to enjoy lifetime income should consider Aviva’s other flagship plan, the Aviva MyLifeIncome II. With this option, you can use your CPF Life or SRS funds to pay your insurance premiums, and you can take advantage of lucrative payouts and other amazing terms, too.

What We Like About Singlife Aviva MyLifeIncome II

  • Enjoy high annual premium payouts of up to 6.35%.
  • Use your CPF Life and SRS funds to pay.
  • Choose a premium payout period of between three and 25 years.
  • Single premium option is also available.

What We Don’t Like About Singlife Aviva MyLifeIncome II

  • Death benefit coverage is more diverse elsewhere.

Learn more about the Singlife Aviva MyLifeIncome II package here.

7. Prudential PRUActive Retirement II – Best for Single and Regular Premium Options

If flexibility is your top priority, the Prudential PRUActive Retirement II product is another great choice – particularly if you’d like the freedom to choose between attractive single and regular premium and payout period options. This plan is also great for older retirees, as you can opt to start your payouts at any time between ages 50 and 90.

What We Like About Prudential PRUActive Retirement II

  • Start your payouts from 50 to 90 years old.
  • Freedom to withdraw or keep your payouts to accumulate savings.
  • Non-guaranteed returns are also up for grabs.
  • Adjust your payout period mid-plan if you change your mind.

What We Don’t Like About Prudential PRUActive Retirement II

  • Payout period options aren’t quite so flexible, with just five standard options available.

Learn more about the Prudential PRUActive Retirement II option by clicking here.

8. Tokio Marine Nest Egg Flexisaver II – Best for No-Nonsense Monthly Payout Terms

The Tokio Marine Nest Egg Flexisaver II is a great fit for anyone looking for a nice and easy plan that can be signed up for with minimum hassle. This short- to medium-term endowment savings plan offers easy-to-follow monthly payout terms as opposed to a lump sum and is great for anyone who wants to save frequently over an extended period of time, e.g., for retirement.

What We Like About Tokio Marine Nest Egg Flexisaver II

  • Incredibly easy to sign up for.
  • No medical underwriting required.
  • Monthly cash benefit terms are easy-to-follow.
  • You can generate higher returns than with regular bank accounts.

What We Don’t Like About Tokio Marine Nest Egg Flexisaver II

  • Insurance death benefit isn’t as comprehensive as you might find elsewhere.

Learn more about the Tokio Marine Nest Egg Flexisaver II now by following this link.

9. Great Eastern GREAT Retire Income – Best for Guaranteed and Non-Guaranteed Bonuses

If you’re looking for a national annuity scheme that offers a combination of guaranteed and non-guaranteed returns, the Great Eastern GREAT Retire Income package is an excellent option. This participating policy offers an attractive Loss of Independence (LOI) income benefit, excellent death and disability payout cover, and decent flexibility of retirement age options.

What We Like About Great Eastern GREAT Retire Income

  • 10 to 20-year monthly payout options available.
  • Both guaranteed and non-guaranteed bonuses can be claimed.
  • 50% additional guaranteed payout monthly for LOI.
  • Capital guarantee included with this premium.

What We Don’t Like About Great Eastern GREAT Retire Income

  • Limited retirement ages – you must choose between 56, 61, 66, and 71 years old.

Discover everything you need to know about Great Eastern GREAT Retire Income and get started saving today here.

10. Tokio Marine TM Retirement GIO Plus II – Best for Secure Income After Paying Just Five Years of Premiums

If you want to unlock a monthly lifetime payout made up of both guaranteed and non-guaranteed income by paying just five years’ worth of premiums, the Tokio Marine TM Retirement GIO Plus II package is a great annuity option. This is one of the best plans on the market right now for retirement savers who are looking for a short-term premium plan.

What We Like About Tokio Marine TM Retirement GIO Plus II

  • Save a short-term premium over just five years to unlock regular cash payouts.
  • Payouts start immediately once you hit the appropriate age.
  • Enjoy insurance options without the need for medical underwriting.
  • Generate higher returns than you’d get with ordinary bank accounts.

What We Don’t Like About Tokio Marine TM Retirement GIO Plus II

  • No lump sum payout options available at the time of writing.

Find out more about Tokio Marine TM Retirement GIO Plus II and get yourself set up with this plan today by following this link.

11. China Taiping i-Cash III – Best for Frequent Savers Looking For a 10-Year Plan

This increasingly popular savings plan offers Singaporeans a fantastic opportunity to receive lifetime cash right up to age 85. Customers get to enjoy yearly payouts made up of 1% sum assured guaranteed and 7.2% sum assured in non-guaranteed benefits, after paying premiums for just five to ten years.

What We Like About China Taiping i-Cash III

  • Take advantage of regular cash payouts until age 85.
  • Choose between a five and a 10-year premium.
  • Hassle-free application process.
  • No medical underwriting is required.

What We Don’t Like About China Taiping i-Cash III

  • Liquidity and flexibility of withdrawal is limited when compared with other plans.

Discover everything you need to know about China Taiping i-Cash III today here.

12. China Life Lifetime Income  – Best for Capital Guarantee Peace of Mind

China Life Lifetime Income is one of the best retirement plans on the market for Singaporeans who wish to enjoy a dream retirement funded by a lifetime yearly income. This product offers the peace of mind of a capital guarantee and allows customers to select their preferred payment term well ahead of time.

What We Like About China Life Lifetime Income

  • Enjoy a lifetime yearly income with a 100% capital guarantee.
  • Hassle-free application process for new customers.
  • Financial protection against death and terminal illness included.
  • Get 0.8% guaranteed and 5.4% non-guaranteed.

What We Don’t Like About China Life Lifetime Income

  • There are only three benefit riders to choose from with this plan.

Find all the information you need about China Life Lifetime Income by following this link.

asian senior activity at the beach happy jumping

Frequently Asked Questions (FAQs) About Retirement Plans and Financial Planning Advice in Singapore

1. What is the Difference Between a Single Premium and An Ordinary Premium

While a regular retirement plan will expect you to make monthly or yearly deposits or contributions toward your nest egg, single premium annuities will usually only require a one-time, one-off deposit.

2. When Should I Start Planning for My Retirement?

Most Singaporeans tend to start planning for their retirement at around age 38, but the earlier you make a start, the easier it will be to secure a comfortable lifestyle for yourself in the future.

3. Do All Plans Include Complement Health Coverage?

More often than not, retirement plans in Singapore will include complimentary health coverage, but this might not necessarily always be the case. You should check the terms and conditions of the plan you are applying for when comparing the market.

4. Which Regular or Single Premium Plan is Best?

The retirement annuity plan that is the best fit for you will depend entirely on your unique circumstances, such as your desired retirement age, term, and whether you would rather have annual premium payouts or to receive a monthly cash benefit instead. You should shop around extensively to find the best possible match.

5. How Do I Get a Premium Waiver?

All retirement annuity plans in Singapore have their own unique terms and conditions. So, whether you’re applying for a ManuLife RetireReady Plus Plan, NTUC Income Gro, or a China Life plan, premium waiver, tax relief, and rules regarding other benefits will always differ. You should read the terms and conditions of your preferred plan carefully.

Conclusion – Which Singapore Retirement Annuity Plans are the Best Fit for You?

From building up adequate retirement savings to securing guaranteed monthly income and the lump sum and payout period terms you need, there’s a lot to think about when choosing a retirement annuity plan. Here are the key things to keep in mind:

  • You’ll need to think about your preferred retirement age, retirement funds goals and desired retirement income and payout period before selecting an appropriate plan.
  • Every retirement plan is different from the last, and unless you’re designing a private annuity plan with a financial advisor, you’ll need to compare the market to find the best retirement plan option to suit you.
  • Saving earlier, shopping around far and wide for future premiums and adjusting your desired payout period will give you more flexibility with your retirement plan.
  • CPF savings from CPF Life might not necessarily cover the luxurious future you’ve been anticipating – so retirement planning is always absolutely essential.
  • It’s important not to overlook life insurance coverage and total and permanent disability coverage, as life can be unpredictable and the best retirement plan for you should cover all possible eventualities.

Here at Instant Loan, we like to keep our readers informed on the latest financial planning and retirement savings news. We also offer a quick-and-easy loan comparison service for Singaporeans who are seeking a fast cash injection in their working or retirement years. Try it today to compare up to three top loans from licensed moneylenders absolutely free.

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