3 Best Retirement Plans in Singapore with Lifetime Income (2020 Edition)

While there are many investment options when it comes to generating an income stream, few can provide the level of stability and assurance of a retirement annuity plan.

You can now have the promise of a lifetime of retirement income, to ensure that your savings will last you till the end of your living days.

For this review, we look into the best retirement plans in Singapore that provide a lifetime of income:

• Best Lifetime Income Retirement Plan for Joint Application – Tokio Marine Retirement PaycheckLife
• Best Lifetime Income Retirement Plan for Guaranteed Income – Aviva MyRetirement Choice
• Best Lifetime Income Retirement Plan for Product Flexibility – AXA Retire Happy Plus (Level)

Does your income really need to last for a lifetime?

The life expectancy of an individual varies across a host of factors such as gender, wealth, access to medical technology. In general, Singaporeans live longer than most other nationalities and they also do so in full health, according to the latest 2020 World Health Statistics by the World Health Organisation (WHO). The same report also puts Singapore in third place, behind Japan and Switzerland when it comes to average life expectancy.

Closer to home, Singapore Department of Statistic (SingStat.gov.sg) reported the life expectancy (age 65) for male and female at 19.1 and 22.5 years respectively. As the statistics are based on the overall resident population, your own life expectancy may well be over or under 85/ 87 years, depending if you are a male or female.

This brings us to the following questions:

• What if your life expectancy is far above Singapore average for your gender?
• How long should you plan your income stream to last?
• How can you plan your finances to last you as long as you live, without compromising on your lifestyle?

Related article: 5 Reasons to Invest in a Retirement Annuity Plan *NEW*

What do we mean by retirement plans with lifetime income payout?

Taking a 10% buffer above and over the average Singapore life expectancy, the annuities selected for lifetime income payout must fulfil the following

• Minimally provide an income payout to age 95
• Provide a competitive financial yield based on total premium
• Payout a high guaranteed yearly income
• Waiver of future payable premium due to TPD (Ensures that retirement income goals are not disrupted)
• Provide additional guaranteed income in the event of severe disability (Bonus)

Due to the lifelong/ long-term payout of lifetime annuity plans, your yield financial payout may be lower compared to a retirement plan that provides an income for a fixed period of years. A high income payout or increasing income payout retirement plans can be separately taken up to increase the income received during the early years of your retirement.

Alternatively, consider taking up a separate retirement plan that guarantees the withdrawal of all the premium paid should you require a lump sum of money. This allows liquidity on a portion of your funds without risking low financial returns.

3 Best Retirement Plans with lifetime income payout

In no order of ranking and preference, we listed comprehensive details on the best retirement plans that provide a stream of income payout for a lifetime.

Note that the stated yields are very close approximates. Your actual yields and financial returns will depend on your current age and the compounding period before payout starts.

Best Lifetime Income Retirement Plan for Joint Application – Tokio Marine Retirement PaycheckLife

Tokio Marine Retirement PaycheckLife is a limited pay, participating whole life plan that pays a guaranteed monthly income for life, starting from the selected retirement age.

Unlike most retirement plans, the non-guaranteed income is paid at the end of every year.

Brief financial details for Tokio Marine Retirement GIO, based on Male, age 40 receiving a retirement income at age 65.

• Total premium paid: $208,710 (Over 15 years)
• Guaranteed yearly income: $12,000 (Lifetime)
• Projected yearly income: $24,000 (Lifetime)
• Guaranteed Payout to age 100: $420,000

The advantages of Tokio Marine Retirement PaycheckLife

As an annuity with minimal insurance coverage, Tokio Marine Retirement PaycheckLife offers a competitive income payout for a lifetime.

The disadvantages of Tokio Marine Retirement PaycheckLife

Without a premium waiver, you ran the risk of being unable to pay the yearly premium in the event of severe disability.

As there is no income multiplier for Retirement PaycheckLife, it will be important to have an additional income stream to cater for old age-related health and medical conditions.

Refer to: Tokio Marine Tokio Marine Retirement PaycheckLife review

Best Lifetime Income Retirement Plan for Guaranteed Income – Aviva MyRetirement Choice

Aviva MyRetirement Choice is a highly competitive retirement plan that allows high customisation, allowing you to select the years to pay your premiums, years to accumulate funds, and years to receive your income payout.

Any future premiums are waived upon TPD, ensuring that your retirement income is not disrupted due to inability to earn a living.

Brief financial details for Aviva MyRetirement Choice, based on Male, age 40 receiving a retirement income at age 65.

• Total premium paid: $209,895 (Over 15 years)
• Guaranteed yearly income: $15,000 (2x for LOI, to age 98)
• Projected yearly income: $24,150 (to age 98)
• Guaranteed Payout to age 98: $495,000

The advantages of Aviva MyRetirement Choice

Among the available lifetime payout retirement plans, this is one of the few policies that pay 2 times of your guaranteed income payout due to severe disability. This will be a highly useful feature as you will be more dependent on an income stream for other life purposes as your health turn for the worse over time.

Based on comparable premiums amount and terms, Aviva MyRetirement Choice has one of the highest guaranteed monthly income across its peers. This is on top of the doubled guaranteed income payout in the event that you are unable to perform at least 3 out of 6 Activities of Daily Living (ADLs).

The disadvantages of Aviva MyRetirement Choice

One glaring downside being that income payout only last till age 98, leaving those that plan to live and receive an income over the age of 100 lacking in the later years.

Refer to: Aviva MyRetirement Choice review

Best Lifetime Income Retirement Plan for Product Flexibility – AXA Retire Happy Plus (Level)

AXA Retire Happy Plus is the refreshed version of AXA previous retirement plan, AXA Retire Happy. The new Retire Happy Plus has a wide range of options to allow you to structure your retirement plan to suit your financial needs.

Among the above options, u can choose the following options where applicable.

• Paying a premium for: Single lump sum, 5, 10, 15, 20, 25 years
• Retirement paying starting from: Age 50, 55, 60, 61, 62, 63, 64, 65 or 70
• Type of income payout: Level or Inflated (at 3.5% p.a)
• Income payout period: 15,  20 years or Lifetime

Brief financial details for AXA Retire Happy Plus, based on Male, age 40 receiving a retirement income at age 65.

• Total premium paid: $200,040 (Over 20 years)
• Guaranteed yearly income: $11,315 (to age 99)
• Projected yearly income: $23,875 (to age 99)
• Guaranteed Payout to age 99: $396,025

The advantages of AXA Retire Happy Plus (Level)

Similar to Aviva MyRetirement Choice, Retire Happy Plus is a flexible annuity plan that allows you to even choose an income payout that is guaranteed to increase on a yearly basis. The built-in rider pays out one time 5x of yearly guaranteed income in the event of TPD before your retirement income payout starts, potentially reducing some of your financial burdens.

The disadvantages of AXA Retire Happy Plus (Level)

An additional rider has to be purchased for the waiver of future insurance premium should you suffer TPD while you are paying premiums. Income payout last until age 99, a potential longevity risk should you live well over age 100.

Refer to: AXA Retire Happy Plus review

A detailed comparison of retirement plans with lifetime income payout

We have compiled a detailed comparison of retirement plans with a lifetime income payout. The financial figures are based on a male at age 40, looking to pay premiums for an annuity for 15 or 20 years.

The financial objective of the retirement plans stated is to receive a lifetime of income starting at age 65. Wherever possible, a higher guaranteed and overall income payout is preferred. In addition, long-term care features that provide additional income payout are given additional preferences.

Note: For users on mobile devices, you may have to swipe/ scroll on the chart to view the complete data.

How to get the most out of a retirement plan?

Your retirement plans are meant to supplement your lifestyle and expenses in your golden years. Find a retirement plan that pays out according to your life objectives before looking at the financial figures.

Afterall, the yields and the financial payout will not make a difference if the retirement plan does not allow you to utilize it according to your desired retirement lifestyle.

Whenever possible, consider the following before taking up a retirement plan:

• Would you prefer a higher guaranteed or a higher overall non-guaranteed payout?
• Do you need the payout to increase at a fixed rate to keep up with inflation?
• In the event of disability or Critical Illness, do you still have to continue paying your premiums?
• What is the overall annualised yield on the retirement plan?
• Are you expecting a lump sum payout once you reach your retirement age?
• How much guaranteed and non-guaranteed are you expecting to receive if you have to do an early surrender of your policy during your retirement years?
• In the event of disability during the payout period, is there any income multiplier to cover additional costs that will be incurred on your lifestyle?

Ensure that your retirement plan can address your retirement needs and concerns as much as possible. Due to the large financial commitment and long time horizon required, never compromise on what is important to you.

Read about: The comprehensive guide to retirement planning in Singapore (2020 Edition) *NEW*

Read about: 3 Best retirement plans – Best in income and features (2020 Edition) 

What is the best retirement plan with lifetime income for you?

It is too late to regret once you have made your financial commitment. Specific products features, benefits and payout will differ more than you think across insurance companies.

And even worse, to know you can compare retirement plans and annuity policies here,  100% free of charges on the InterestGuru.sg platform.

Find out about the best Retirement plans and Annuity policies

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Note: All financial figures are based on close approximate and all non-guaranteed figures are based on the higher tier of 4.75% investment returns. The sample illustrations are for illustrative purposes only and is not a contract of insurance. Early surrendering or cashing out from a Retirement plans or Annuity policies will certainly result in financial loss. In the event of doubt, always refer to the precise terms and conditions as specified in your policy contract. Seek the advice of a qualified financial professional or a licensed financial adviser before making any decision or financial commitment.

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