: Secure Your Golden Years with the Right Choice Introduction In the sunny island nation of Singapore, making the right choice…
Retirement Income Plan is often ignored. When talking about retirement, most persons would focus on central provident fund’s CPF Life and property as main areas of concern, while they ignore one’s Retirement Income Stream.
It is an income stream designed to provide regular payments at a specified rate in exchange for an upfront premium payment. Retirement Income Plan usually come with a Death Benefit feature too, so it can be used to payout upon your death. This blog will help you to know more about retiring in Singapore and Retirement Income Plan.
Experts recommend that people start thinking about retirement around age 40. This is partly because the laws of physics don’t allow people to work for another 40 years and also because people tend to feel more confident after a few decades have passed.
It’s hard to imagine doing anything else for the rest of your life. And yet, if you start saving now, at 40 you can probably still be comfortably retired with enough money to live on (assuming you invest wisely).
If you’re nearing retirement age, you should think seriously about investing in a Retirement Income Plan. Here are a few things to consider:
With it, your investment grows tax-free over time and is paid out when you retire. You can make payments based on your life expectancy or other factors that make sense for your financial situation. Generally speaking, the longer you plan to stay in retirement, the better the return on your investment will be with a Retirement Income Plan.
It provides guaranteed minimum returns over its term, so it helps protect against inflation — which often plagues retirees — by ensuring that your investment doesn’t lose its value if the stock market dips.
This is a big consideration when retiring early or at a later age than planned. If you’re living longer than expected, an Retirement Income Plan might be able to pay out as much as 100 per cent more than expected — even though it was originally designed to pay out only 70 per cent of what was expected.
When you hear “retirement,” what comes to mind? Many people picture a beach vacation or a quiet afternoon on the porch. Some imagine world travel or an adventure-packed retirement filled with new experiences. Of course, most of us also associate retirement with being 65 or older.
But what if you could choose to retire at 50 instead? What about 45? Or how about 40?
The idea of getting a Retirement Income Plan plan is to have a guaranteed income. Once you retire, the money from your Retirement Income Plan is yours, and you don’t have to do anything with it except enjoy the peace of mind that comes with having the cash waiting for you.
However, the reality is that not everyone lives long enough to make it to the end. And when they die, there’s no guarantee your plan will continue on after you.
So what’s the alternative? Retirement Income Plan are a form of insurance that can provide guaranteed income in retirement as well as during the duration of the plan. They’re also new features known as Secondary Insured option because they continue to pay your regular monthly payments to your loved ones even after you’ve passed away.
Source:NTUC Income
Retirement Income Plan are typically purchased through a financial advisor and can be very effective if used right.
Here’s a common misconception that retirement is something that happens after you leave your job. But the truth is, you need to be thinking about it before that. And it’s not just me; we all have to think about money before we’re 40.
The truth is, you need to start saving for your retirement income plan a long time ago so you don’t end up like M: in his 70s and still working..
And we all have to think about money before we’re 40 because things can change, and they change fast. It’s the decade when lots of people retire, and the decade when lots of people are pushed into early retirement by layoffs, downsizing or other sources of job loss. It’s also the decade when our health care costs creep higher, and the single biggest expense in most Singaporeans’ budgets.
A little bit of planning now can save a lot of headaches in the future.
The best time to think about retirement income plan, and then act on them, is right now.
It offers a way for you to guarantee a decent income, without putting all of your money into the stock market. And you don’t have to worry about losing it.
They are a great way to take control of your future financial security. They allow you time to continue working while taking care of the money that will eventually go towards your secure retirement.
Most people still have a long time to go before they retire completely. They might be putting away money for a pension and living off that money for the next 15 or 20 years, or they may have a company pension plan and other savings plans in place.
But whether you’re working or not, it never hurts to look ahead at what you’ll need in retirement. You can start doing this now by talking with your adviser about a retirement plan and exploring your options for income later on.
So what should I do? At 40, you have put a lot of time and money into your career, but it is time to think about it.
