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single premium retirement plans

8 Single Premium Retirement Plans You Should Know

Single Premium Retirement Plans: Only invest in your retirement once…don’t make the mistake one retiree made.

 

Only invest in your retirement once

What’s something we always tell you? If you want to be successful, you can’t make more mistakes. Well, that’s what we learned from one of our company’s (almost) retirees.

He was just like you: a hard worker who wanted to retire in style soon. So he invested his money into his 10-year regular premium payment savings plan. He put in $1000 every month and watched it grow.

And then 3 years later he was retrenched! Instead of retiring early, he had to keep working for another 7 years until he finally could pay off his saving plan (Because we all know early termination of such policy may result in losses!). If only he had been more informed about his choices!

So don’t make the same mistake—invest only once in your retirement and make sure it’s a good investment!

 

Single Premium vs. Regular Premium

Single premium annuity plans, or SP for short, are insurance products that allow you to put a lump sum of money into a plan. In return, the insurer promises you a monthly/yearly/maturity payout for limited years or for the rest of your life.

SP annuities are usually a cheaper option than regular premium plans. The biggest difference between the two types of plans is that single premium annuities require a one-time deposit, while regular premium retirement plans allow you to make monthly or yearly deposits or contributions in order to generate future payments.

Single premium plans might be preferable to regular-premium annuities in some situations. However, both types of products have trade-offs. Whether SPs are right for you depends on your particular goals and circumstances. Here’s what you need to know about these products and how they work:

 

Retirement Plan NTUC Income

Gro Saver Flex 

5-Pay

NTUC Income

Gro Saver Flex 

Single Premium

Premium

Annual Premium

Premium Term

Total Premium

Policy Term

 

 

S$ 10,000

5 years

S$ 50,000

80 years

 

 

NA

Single Premium

S$ 50,000

80 years

 

Cash Value

At 10th Year

Guaranteed 

Total at 3.00%

Total at 4.25%

 

At 20th Year

Guaranteed 

Total at 3.00%

Total at 4.25%

 

At 30th Year

Guaranteed 

Total at 3.00%

Total at 4.25%

 

 

 

S$ 44,235

S$ 53,722

S$ 59,074

 

 

S$ 51,607

S$ 73,395

S$ 87,476

 

 

S$ 58,390

S$ 91,710

S$ 125,123

 

 

 

S$ 42,500

S$ 54,993

S$ 62,287

 

 

S$ 53,700

S$ 80,557

S$ 98,308

 

 

S$ 61,100

S$ 106,750

S$ 144,314

 

Maturity Value

Guaranteed 

Total at 3.00%

Total at 4.25%

 

S$ 105,672

S$ 355,223

S$ 1,024,551

 

S$ 144,314

S$ 378,462

S$ 1,174,727

Source: NTUC Income

 

What is a single premium retirement plan?

A Single Premium Retirement Plan is an endowment plan that you pay for in a single upfront payment. This upfront payment is commonly referred to as the “single premium”.

Once you have paid the single premium and the policy has been issued, you will typically have to wait for a period before receiving any payments. This waiting period is known as your “accumulation periodand can last anywhere from 1 year to 40 years. During this accumulation period, the insurer will be investing your single premium in participating funds—The main asset classes are local and overseas equities, bonds, property and cash.

The policy then pays out two different types of cash flows:

  • -Guaranteed cash flows
  • -Non-guaranteed cash flows

The payout is relatively higher than what you’d get from other types of endowment such as regular premium policies.

Trying to decide between the different types of retirement plans? Read on to find out which type is best for your needs.

 

Here’s a look at 8 single-premium retirement plans for Singaporeans —Single Premium Retirement Plans

best single premium retirement plan

#1: AIA Retirement Saver (IV)

When you’re ready to retire, you need a retirement plan that can help you make the most of your time. With the AIA Retirement Saver (IV), you can take advantage of the below features:

  • Potential Monthly Dividends that increase yearly
  • Defer premiums for 1 year upon retrenchment
  • Receive a one-time terminal dividend upon claim or maturity or surrender of policy

 

#2: China Taiping Infinite Harvest (III)

The China Taiping Infinite Harvest III policy offers you a lifetime payout. The payout is scheduled for your 5th policy anniversary, and it’s designed to help you protect the legacy that’s most important to you.

  • Lifetime payout
  • Payout from 5th policy anniversary
  • Leaving a Legacy

China Taiping Infinite Harvest (III) review 2X Lifetime payout

 

#3: Manulife RetireReady Plus (III)

If you’re looking for a way to make sure your retirement income will be there for the long haul, Manulife RetireReady Plus (III) is the annuity that’ll help you meet your goals.

  • Option for Lifetime payout (age 120)
  • Adjust your income payout period according to your changing needs anytime up to 2 years before your selected retirement age
  • Loss of Independence Income Benefit: Receive up to an additional 100% of your Guaranteed Monthly Income
  • Retrenchment Benefit: Get a lump sum payout

 

#4: Manulife ReadyBuilder (II)

Introducing Manulife ReadyBuilder. It’s an insurance product that builds in the flexibility you need to live your best life

A long maturity—you can take it with you if you change jobs or retire early. You can even hold onto it until you’re 120, if you want!

  • Long maturity up to age 120
  • Flexibility to access the cash value
  • Premium waived upon Total and Permanent Disability (TPD)
  • Receive a lump sum equivalent to 50% of 1 year premium upon Retrenchment
  • Option for Premium freeze for 1 year

Manulife RetireReady Plus Retirement Plan Review – Weathering Policy Changes

 

#5: NTUC Income Gro Retire Flex

You can adjust your income payout period anytime before you hit payout age. And if you have a Secondary Life Insured, your policy will continue without interruption.

  • Adjust your income payout period anytime before payout age
  • Policy continuity with Secondary Life Insured
  • The following Protection Benefit (For Regular Premium policy only):
    • Additional 50% monthly cash benefit upon Disability (Loss of use of one limb; Loss of speech; Loss of sight of one eye; Loss of hearing ); 
    • Additional 105% net premiums paid upon Accidental Death; 
    • Defer premiums for 6 months upon Retrenchment

Gro Retire Flex Review– Retirement Plan For Anyone

 

#6: NTUC Income Luxe Solitaire

Introducing the NTUC Income Luxe Solitaire, a lifetime insurance coverage that provides monthly cash payouts with a single premium. The plan is suitable for you if you are looking for an added retirement savings or a monthly income during your retirement years. 

Building a financial legacy is something we all want to do someday. That’s why we’ve made it easy for you to do so with NTUC Income’s Luxe Solitaire.

  • Lifetime payout (age 120)
  • Payout from 2nd policy anniversary
  • Leave a legacy with a secondary insured
  • Maturity benefit at age 120

 

#7: NTUC Income Grandeur Solitaire (USD)

NTUC Income is bringing you the brand new Grandeur Solitaire!

This product provides you with a lifetime payout from your second policy anniversary and can even leave a legacy for someone else in your family if you’re no longer around when it matures!

They’ve got plenty of other features that are sure to make you happy, too:

  • Lifetime payout (age 120)
  • Payout from 2nd policy anniversary
  • Take advantage of market opportunities with a plan denominated in US dollars
  •  Leaving a Legacy

 

#8: NTUC Income Gro Saver Flex

Hey there. If you’re looking for a new savings policy, you just found the right one. With NTUC Income Gro Saver Flex, you can choose the term length that works best for you—10, 15, 20, 25, or 30 years or lifetime. And if you want to keep it going even after your death, they’ve got you covered with our Secondary Life Insured benefit! They also waive your premiums if you get TPD and defer them for 6 months in case you get retrenched.

  • Choice of policy term of 10/15/20/25/30 years or till age 120
  • Policy continuity with Secondary Life Insured
  • Premium waived upon Total and Permanent Disability (TPD)
  • Defer premiums for 6 months upon Retrenchment

 

How do you get started? —Single Premium Retirement Plans

pension plan single premium

There are three things you need to consider before you sign off on your purchase:

  1. How much can you afford to pay? SPs are expensive (compared to Regular premium policies), even though you’re only contributing one time. Think about how much money you can put aside now, and how long it will last until you have enough money saved up for your first payment.
  2. What do you want from this plan? The most important thing is to make sure that there really is something in this plan for you. What are you trying to accomplish? Do you want guaranteed income when you retire? Do you want a lump sum when leaving the workforce? Make sure that your plan will help your early retirement? Do you want the option to change the payout period?

Many people are finding it difficult to find the best retirement plan that is suitable for their financial situation. With so many options to choose from, it’s hard to know where you should even start.

There are two direct ways to invest in a single premium plan:

 

Option 1: Investing in a Single Premium Plan via SRS —Single Premium Retirement Plans

Many people are not aware that they can get a tax rebate for contributing to a Supplementary Retirement Scheme (SRS) account. The SRS funds can be used to invest in a Single Premium (yes, only Single premium!) insurance plan that allows one to receive an income ideally after the retirement of Age 62.

 

Option 2: Investing in a Single Premium Plan via Cash (SGD & USD) 

First of all, congratulations! You have optimized your CPF and SRS, and have some spare cash to invest in a Cash plan.

I’ve written about this before, but it’s worth repeating: The CPF system is a good one. The returns are very competitive for the low risk there’s a variety of options to optimise it to make it work harder for you.

Now, you are looking at the SGD plans which are the default for most people. The plan is about 3-4% returns p.a., it’s not fantastic but you can consider what you will use this money for when calculating whether this is good enough for your retirement fund.

If you are not sure how many years you will live past retirement age or how good you will be in managing your monies during retirement, it might be better not to risk a large amount of your savings in a volatile investment like stocks or unit trust funds.

On the other hand, if you are looking to diversify your investments, you may want to consider the US dollar plan. Your money is invested in a diverse basket of assets including stocks, bonds and cash.

The US dollar-denominated plan offers an attractive combination of good returns and diversification.

 

What makes them so great? —Single Premium Retirement Plans

single premium retirement plans

There’s no doubt that some people will have difficulty affording their monthly premiums. With a single premium plan, there’s no need to worry about this. The main advantages are:

The advantages of single premium plans are:

No monthly premiums – The main advantage of single premium plans is that there are no monthly premiums to pay. If worry about whether you’re able to afford the next month’s premium or if you’ll be able to set aside enough money every month to cover it, this is a great alternative.

Higher returns – Finally, a single premium plan generally results in higher investment returns. Single payments tend to be cheaper than monthly payments, and therefore can result in higher returns over time.

Get your payouts faster –Some of the best single premium plans can even provide for an immediate payout, while others offer up to an early pay-out in just one or a few years. The extra cash can help you achieve your regular income goals faster.

 

Takeaway: If you’re looking for the best SP plan, you’ve come to the right place.

Ultimately, finding the best SP plan for you means doing your research. You can begin by looking into the ones we’ve reviewed here and in our previous articles. If a company offers what you need, and you feel comfortable investing with it, then that’s great. Otherwise, keep looking because you never know what you might find!

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