AIA Retirement Saver (III) Embrace An Exceptional Track Record
AIA Retirement Saver (III) is a single/limited /Regular pay participating endowment plan designed to help retirement planning. The plan provides a monthly retirement income starting from the selected retirement age, over the selected income payout period.
This plan will replace the AIA Retirement Saver (II) as of 05 May 2020
Key Enhancements from AIA Retirement Saver (II)
- A new 20-year Income Payout Period*
- A new Retirement Age 50*
- Additional Premium Term options of 15 and 20 years
- Allow Early Critical Protector Waiver of Premium (ECPWP)* rider to be attached
*not applicable for Single Premium option
How it works
The AIA Retirement Saver (III) provides the following option for people who wish to plan for their retirement
- Premium payment term: Single-Premium, 5, 10, 15 or 20 years, or regular premium up to age 50, 55, 60, 65 or 70.
- Retirement Age: 50, 55, 60, 65 or 70
- Income Payout Period: 15 or 20 years
The plan provides a Guaranteed Issuance Offer for coverage against death. with the following attachable riders which require full medical underwriting:
Critical Protector Waiver of Premium or Early Critical Protector Waiver of Premium Rider can be attached to take care of all your future premiums upon the diagnosis of any of the covered 42 major stages critical illness or 103 multi-stage critical illnesses respectively.
3 Tier Payout
AIA Retirement Saver (III) provides a 3 tier payout feature during your retirement years
Retirement Income – This is the guaranteed portion of the payout which is a fixed amount of monthly income payable throughout your chosen retirement years
Monthly Dividend – Depending on the experience of the participating fund, a discretionary dividend will be declared yearly and you will have the option to request to withdraw or leave it with AIA to accumulate interest at their prevailing rate. This non-guaranteed monthly payout will increase by about 5% every year, starting from your selected retirement age
Terminal Dividend – This is an additional potential one-off lump sum which may be added as an extra bonus to your retirement funds upon maturity of your policy.
Cash & SRS Eligible
This product is available in cash (all premium payment terms) or SRS (for single premium only).
This Product is Suitable for customers looking for:
- Accumulate for retirement needs
- Certainty in retirement income
- To supplement CPF Life Payouts
- Shorter premium commitment
This Product is Not Suitable for customers looking for:
- Short term accumulations
MONEYLINE.SG Deductive Reasoning
What We Like
We like the fact that this plan has a single premium feature and is eligible for SRS placement, The projection for AIA is one of the highest in the industry and base on their track record, they do have a strong basis to deliver their 4.75% p.a. projection or even outperformed it.
Base on the above figures, AIA has one of the highest par fund returns in the industry over the last 3 years, although we have to emphasize that historical performance may not be indicative of future returns.
What We Don’t
AIA lose out on their guaranteed returns as compared to some of its peers. Although the non-guaranteed returns are how people judge the credibility of the insurer, there will be many potential buyers that will scrutinize this point.
AIA also do not have premium waiver nor double guaranteed income payout in the event the assured were to suffer from a disability, this is definitely the Achilles heel of the plan as compared to its peers. However, the AIA Retirement Saver (III) allows the insured to waive his/her premium by adding in a Critical or Early Critical Illness Premium Waiver rider, these addition will be subjected to full medical underwriting.
You may want to Read 3 Best Retirement Plans in Singapore
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