Compare & Find The Best Retirement Annuity Plans in Singapore
We partner with unbiased financial advisors to help you compare and find the best retirement annuity plans.
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What is a Retirement Annuity Plan?
Imagine reaching your golden years with the confidence that you’ve got a steady stream of income to cover all your needs, from daily expenses to leisurely pursuits that you’ve always dreamt of. That’s the peace and security a retirement annuity plan offers. Designed to be your financial backbone post-retirement, this plan transforms your savings into a predictable and reliable payout, ensuring you enjoy your retirement years without financial worries. It’s not just a plan; it’s your ticket to a worry-free, fulfilling retirement life where financial constraints don’t dictate your choices.
Pros of Retirement Plans
Guaranteed Income
A hallmark of most annuity plans is the assurance of a guaranteed income stream, often for life. You can expect to receive regular payments at agreed intervals which can help in managing living expenses, ensuring a stable financial status throughout retirement.
Flexible Payment Options
Annuity plans come with flexible payment options tailored to meet diverse financial needs and goals. Whether you prefer a lump-sum payment, a life-long income stream, or payments for a certain period, annuity plans can be customised.
Capital Growth
Annuity plans pool premiums from various policyholders, investing them in a mix of assets like bonds, stocks, and real estate. This diversified approach aims to achieve a balance between generating returns and preserving capital, making sure your capital grows safely.
Cons of Retirement Plans
Limited Liquidity
Retirement plans, especially those designed for long-term savings like annuities or pension funds, often come with restrictions on access to your funds until you reach a certain age, typically retirement age. This means your money is not readily accessible should you face an unexpected financial need or an emergency before then.
Complexity and Fees
Retirement plans can be daunting due to the complex nature of some products, including variable annuities or certain pension schemes. These products often come with a host of fees, such as management fees, insurance charges, and administrative fees, which can eat into your returns over time.
Market Risk and Inflation
While some retirement plans offer guaranteed returns, others carry a level of risk. Your retirement savings might not grow as expected or might not keep pace with inflation, reducing the purchasing power of your money over time. This necessitates careful planning and diversification to manage and mitigate potential impacts on your retirement income.
Who should get retirement annuity plans?
The Prudent Planner
Individuals who are meticulous about planning for the future, often well in advance, would find retirement annuity plans highly appealing. They value the security and predictability that these plans offer, ensuring a stable income stream post-retirement. Prudent Planners appreciate the peace of mind that comes from knowing their financial needs will be met in their golden years, allowing them to focus on enjoying retirement without the worry of outliving their savings.
The Risk Averse
Those who prefer stability and are cautious about where they invest their hard-earned money would be well-suited for retirement annuity plans. Risk-averse individuals might be wary of the volatile nature of the stock market or real estate investments. For them, the guaranteed income from an annuity plan serves as a safe harbor, protecting their retirement funds from market fluctuations and ensuring a steady income regardless of economic conditions.
The Family Steward
Individuals who prioritise the financial well-being of their loved ones often find retirement annuity plans align with their goals. Family Stewards seek to ensure that their retirement planning does not become a burden on their family members. An annuity can provide a consistent income that covers their retirement needs and potentially offers a death benefit or legacy option, securing financial peace of mind for their heirs. This type of plan resonates with those who wish to safeguard their family’s future while managing their own retirement needs effectively.
Best Retirement Annuity Plans in Singapore
AIA Retirement Saver IV
NTUC Income Gro Retire Flex Pro
Manulife RetireReady Plus (III)
Manulife Ready LifeIncome (III)
Singlife Flexi Retirement
Prudential PRUActive Retirement (II)
Great Eastern GREAT Retire Income
How to apply for a comparison session?
Step 1
Submit a request for a comparison session with Life Insurance Singapore. Based on your request, we will match you with one of our MAS-licensed partners.
Step 2
Our partners will obtain quotations from the respective insurers and help you compare based on price, features, and suitability.
Step 3
Once you've found the perfect retirement plan, feel free to purchase it from a friend, directly from the insurer, or from our partners!
Why do you need a retirement plan?
You need a retirement plan to ensure financial stability and maintain your lifestyle after you stop working. It helps manage living costs, healthcare, and leisure activities, providing peace of mind for your future. Retirement planning is essential for achieving long-term financial security, allowing you to enjoy your retirement years without financial worry.
What is the retirement age in Singapore?
The retirement age in Singapore is currently set at 63 years, but in 2026, the retirement age in Singapore will be 64. There are plans to gradually increase it to 65 by 2030. This adjustment is part of Singapore’s strategy to support an ageing workforce, allowing individuals to remain employed and financially independent for longer. Additionally, the re-employment age is also set to rise, ensuring older workers have the option to continue working under revised terms if they wish, providing a structured approach to extending the working life in line with increasing life expectancy and health improvements.
How much does the average Singaporean need for retirement?
The amount the average Singaporean needs for retirement varies, but financial experts often suggest aiming for a sum that supports 60-70% of your pre-retirement income to maintain a comfortable lifestyle. Factors influencing this amount include lifestyle choices, healthcare needs, and inflation rates. Planning with these considerations helps ensure financial security and the ability to enjoy retirement without undue financial stress. For a more detailed calculation, it’s advisable to consider specific personal and financial circumstances, possibly with the help of a financial planner.
When is the best time to start retirement planning?
The best time to start retirement planning is as early as possible, ideally in your 20s or as soon as you start earning. Beginning early maximises the power of compound interest, allowing more time for your investments to grow. Starting early also means you can adopt a more aggressive investment strategy and gradually shift to more conservative investments as you approach retirement, ensuring a more robust financial foundation for your retirement years.
What makes a good retirement plan or annuity policy?
A good retirement plan or annuity policy is characterised by its ability to offer a stable and sufficient income stream during retirement, flexibility in terms of payment options and retirement age, and a balance between guaranteed returns and potential for higher, non-guaranteed bonuses. It should also provide clear terms regarding fees and charges, and ideally, offer some form of protection or coverage for unforeseen circumstances, enhancing financial security. Personal circumstances and financial goals should guide the choice, making it important to compare various options to find the one that best suits your long-term needs.
What is a participating fund?
A participating fund in insurance and annuity plans pools premiums from policyholders to invest in various assets, aiming to balance growth with capital preservation. It uniquely offers policyholders a share in the profits through bonuses or dividends, depending on the fund’s performance. These funds are a blend of insurance protection and investment, providing both security and potential for increased returns, making them attractive for individuals looking for a product that contributes to both their savings and protection needs.
Which insurer has the best participating fund in Singapore?
According to Dollar Bureau’s analysis of Singapore’s participating funds from various insurers, Manulife is the top performer based on geometric mean returns over different time frames, with NTUC Income, and AIA also ranking highly. This performance evaluation considers both short and long-term returns, offering a comprehensive view of how these funds have navigated market conditions. It’s crucial for potential policyholders to focus on guaranteed returns when choosing a plan, as non-guaranteed returns can vary significantly.