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single premium retirement plans

8 Single Premium Retirement Plans You Should Know

When it comes to planning for retirement with Single Premium Retirement Plans, there’s no room for mistakes. Just ask our (almost) retiree who learned the hard way. He diligently invested in a 10-year regular premium payment savings plan, contributing $1,000 monthly, only to be hit by retrenchment three years later. Instead of enjoying early retirement, he had to work for an additional seven years just to cover the plan’s costs (early termination can result in losses, after all). If only he had known better!

Don’t repeat his mistake—invest in your retirement smartly, and do it only once with a solid Single Premium Retirement Plan.

Single Premium Retirement Plan 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:

What is a Single Premium Retirement Plan?

Single Premium Retirement Plans are endowment plans 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 period” and 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 in Singapore

#1: AIA Retirement Saver: Single Premium Retirement Plan

AIA Retirement Saver

Picture this: You’ve reached retirement age, and it’s time to kick back and enjoy life. But to make the most of your golden years, you need a retirement plan that’s got your back. Look no further than the AIA Retirement Saver, brought to you by AIA. This incredible plan offers a host of fantastic features designed to ensure you savour every moment of your retirement:

  • Increasing Monthly Dividends
  • 1-year Premium Deferral for Retrenchment
  • One-time Terminal Dividend at Claim, Maturity, or Surrender

#2: China Taiping Infinite Harvest: Single Premium Retirement Plan

China Taiping Infinite Harvest: Single Premium Retirement Plans

China Taiping Insurance Singapore brings you the China Taiping Infinite Harvest policy, a remarkable addition to the world of single premium retirement plans. This policy promises a lifetime payout, scheduled to commence on your 5th policy anniversary, serving as a valuable tool to protect and nurture your most cherished legacy.

  • Lifetime Payout
  • Commences from the 5th Policy Anniversary
  • Facilitates Legacy Planning

#3: Manulife RetireReady Plus: Single Premium Retirement Plan

Manulife RetireReady Plus

If you’re in search of a reliable and enduring retirement income through a single premium retirement plan, look no further than Manulife RetireReady Plus by Manulife.

  • Benefit from a lifetime payout option (up to age 120)
  • Enjoy the flexibility to modify income payouts (up to 2 years before retirement)
  • Enhance your financial security with the Loss of Independence Benefit (up to 100% extra Guaranteed Monthly Income)
  • Find peace of mind with the safety net of a Retrenchment Benefit (lump sum payout)

#4: Manulife ReadyBuilder: Single Premium Retirement Plan

Manulife ReadyBuilder

Allow us to introduce Manulife ReadyBuilder—an insurance product crafted to provide you with the flexibility needed to embrace life to the fullest. What sets it apart?— An extended maturity period, which means you can carry it with you if you switch jobs or decide to retire early. You can even maintain it until you reach the age of 120, should you wish!

Here’s what you can look forward to with Manulife ReadyBuilder single premium retirement plan:

  • Extended maturity (up to age 120)
  • Enjoy flexibility in accessing cash values
  • Experience premium waivers in the event of Total and Permanent Disability (TPD)
  • Receive 50% of a one-year premium as a lump sum if you face Retrenchment
  • Additionally, you have the option to freeze premiums for one year when needed.

#5: Income Gro Retire Flex Pro: Single Premium Retirement Plan

Income Gro Retire Flex Pro

Income Gro Retire Flex Pro, your trusted single premium retirement plan, puts you in control. You can customize your income payout period at any time before reaching the payout age, and if you have a Secondary Life Insured, your policy will maintain its continuity seamlessly.

  • Tailor your income payout period to your needs, all before the payout age arrives.
  • Ensure uninterrupted policy continuity with a Secondary Life Insured.

Plus, for Regular Premium policyholders, enjoy these additional Protection Benefits:

  • Receive an extra 50% monthly cash benefit in case of Disability (Loss of use of one limb; Loss of speech; Loss of sight of one eye; Loss of hearing).
  • Gain added security with 105% of net premiums paid upon Accidental Death.
  • In uncertain times, rest assured with a 6-month premium deferment option in case of Retrenchment.

#6: Income Luxe Plus Solitaire: Single Premium Retirement Plan

Income Luxe Plus Solitaire: Single Premium Retirement Plans

Meet the Income Luxe Plus Solitaire—an insurance plan that guarantees lifetime coverage, delivering monthly cash payouts with a single premium. Offered by Income Insurance, this plan is your ideal choice if you seek to bolster your retirement savings or secure a steady monthly income during your retirement years.

Planning to create a lasting financial legacy? We understand that aspiration, which is why they’ve designed Income Luxe Plus Solitaire to simplify the process.

Here’s what you can expect:

  • Lifetime payout (at age 120)
  • Payouts commence from the 2nd policy anniversary
  • Ensure a legacy for your loved ones with secondary insured coverage
  • Experience the benefits of a maturity payout at age 120

#7: Singlife Flexi Life Income: Single Premium Retirement Plan

Singlife Flexi Life Income

When you opt for Singlife Flexi Life Income, one of the premier single premium retirement plans offered by Singlife, you unlock a world of benefits. Imagine receiving annual payouts, coupled with a reassuring money-back guarantee. But that’s not all – you have the flexibility to opt for higher returns, providing you with extra funds that you can put towards anything you desire, whether it’s exotic holidays or securing your dream retirement:

  • Lifetime payout
  • Payout from the 4th policy anniversary
  • 100% Capital return
  • Increasing Payout (after 20 years from first income payout or age 60)

#8: Income Gro Saver Flex Pro: Single Premium Retirement Plans

Income Gro Saver Flex Pro

If you’re in the market for fresh single premium retirement plans, you’re in luck. Income Gro Saver Flex Pro is here to meet your needs. You have the freedom to select the term that suits you best—whether it’s 10, 15, 20, 25, or 30 years, or even a lifetime. Plus, here’s what makes it even better:

  • Flexible policy terms (10/15/20/25/30 years or until age 120)
  • Policy continues with Secondary Life Insured
  • Premium waiver for Total and Permanent Disability (TPD)
  • 6-month premium deferment upon Retrenchment

How do you get started?: Single Premium Retirement Plans

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 Retirement Plan via SRS

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!) SRS endowment insurance plan that allows one to receive an income ideally after the retirement of Age 62.

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

First of all, congratulations! You have optimized your CPF and SRS, and have some spare cash for investment in a cash-funded Single Premium Retirement 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 at 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.

Conversely, if diversification is a priority for your investments, you may want to explore the US dollar-denominated Single Premium Retirement Plans. This plan allocates your funds across a diversified portfolio of assets, including stocks, bonds, and cash, presenting an enticing blend of favorable returns and diversification for your peace of mind.

What makes them so great?: Single Premium Retirement Plan

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

The advantages of single premium plans are:

  1. No monthly premiums – The main advantage of single premium retirement 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.
  2. 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.
  3. 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 payout 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 Single Premium Retirement 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 in it, then that’s great. Otherwise, keep looking because you never know what you might find!

What are your goals?

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