Annuity plans complementing CPF Life

Annuity plans are pivotal in ensuring a stable income stream during retirement, complementing Singapore's CPF Life scheme. These plans involve periodic contributions during one's working years, culminating in regular payouts upon retirement. Given the diverse annuity options available in Singapore, it's essential to understand their features and benefits to select one that aligns with individual retirement goals.

Key Features to Consider in Annuity Plans:

• Premium Payment Terms: Options range from single premiums to regular contributions over specified periods (e.g., 5, 10, 15, or 20 years).

• Income Payout Duration: Plans may offer fixed-term payouts (e.g., 10, 20, or 30 years) or lifetime income streams.

• Disability Benefits: Additional support if the policyholder becomes unable to perform certain daily activities.

• Unique Features: Some plans provide retrenchment benefits, escalating payouts to counter inflation, or special condition benefits.

Comparative Overview of Three Annuity Plans in Singapore:

1. Manulife RetireReady Plus (III):

   • Premium Payment Options: Single premium or over 5, 10, 15, 20, or 25 years.

   • Income Payout Duration: Choices include 5, 10, 15, 20 years, or lifetime payouts.

   • Disability Benefits: Provides up to twice the Guaranteed Monthly Income (GMI) if the policyholder cannot perform 3 out of 6 activities of daily living.

   • Unique Features: Offers a retrenchment benefit, providing a lump sum payout upon retrenchment to minimize disruptions to retirement goals.

   • Payout Illustration: For a 35-year-old opting for a $1,000 GMI over a 20-year payout period, the annual premium is approximately $17,244.

     
     

2. Singlife Flexi Retirement II:

   • Premium Payment Options: Single premium or over 5, 10, 15, 20, or 25 years.

   • Income Payout Duration: Flexible periods ranging from 5 to 35 years.

   • Disability Benefits: Doubles the GMI if the policyholder cannot perform 2 out of 6 activities of daily living.

   • Unique Features: Offers competitive premiums with high guaranteed income and flexibility in income payout options.

   • Payout Illustration: For a 35-year-old aiming for a $1,000 GMI over a 20-year payout period, the annual premium is approximately $13,184.

     
     

3. NTUC Income Gro Retire Flex Pro:

   • Premium Payment Options: Single premium or over 5, 10, 15, 20, 25, 30, or 35 years.

   • Income Payout Duration: Options include 10, 20 years, or lifetime payouts.

   • Disability Benefits: Provides a premium waiver or 50% of the GMI upon disability.

   • Unique Features: Includes a retrenchment benefit, offering a premium waiver for up to six months if the policyholder faces unemployment.

   • Payout Illustration: For a 35-year-old seeking a $1,000 GMI over a 20-year payout period, the annual premium is approximately $15,792.

Conclusion:

Selecting the right annuity plan requires careful consideration of one's retirement objectives, financial capacity, and desired income stability. Manulife RetireReady Plus (III) stands out for its comprehensive disability benefits and retrenchment support. Singlife Flexi Retirement II offers flexibility with competitive premiums and high guaranteed income. NTUC Income Gro Retire Flex Pro provides a balance between premium affordability and essential benefits. Prospective policyholders should assess these features in line with their retirement aspirations to ensure financial security in their later years