Question on AXA Retire Happy Plan

[Alexandra+]

Hi All,

My insurance agent came to me and notify me there is an attractive Retirement Savings Plan from AXA. It is called Retire Happy. The website of this plan can be found below.

Retire Happy | Retirement | AXA Life Insurance Singapore

I would like to seek the opinion of you folks if this is a plan that is worth getting.

A little details about me is that I'm in the early 30s and I am working in the Engineering Field for about 6 years and I plan to retire at about age 62.

Thanks!

 

[Alexandra+]

I just found these 2 write ups. How accurate are they?

A Singaporean Stockmarket Investor (ASSI): Inflation adjusted retirement income plan.

http://tankinlian.com/Admin/File.aspx?ID=825&Frame=1

 

[iCuteCube]

This kind of plan, very hard to determine the value, as each year they payout, and each year you haven really factor in the depreciation.

Of course agent will tell you very good, good planning, etc. This is not the first plan, i think the first few will probably be Aviva.

If possible, always go for other alternative that is more cost effective. Locking your money for a long period of time without re-balancing option is a pain to me.

But if you are NOT a discipline and kinda financial savvy person, probably it might not be a BAD plan afterall ?

 

[henrylbh]

What is the use of collecting a huge projected longevity benefit at the age of 80 when you are almost gone or not able to benefit from it.

The projected rate of 5.25% is certainly not achievable as long term bond rates are nearly half the projected rate.

I had a 15 yr term policy with projected rate of 5.75% and when it matured 2 years ago, the effective rate was only 3.5% and at that time interest rates were that not low compared to present time.

 

[Darkzi0n]

What is the use of collecting a huge projected longevity benefit at the age of 80 when you are almost gone or not able to benefit from it.

The projected rate of 5.25% is certainly not achievable as long term bond rates are nearly half the projected rate.

I had a 15 yr term policy with projected rate of 5.75% and when it matured 2 years ago, the effective rate was only 3.5% and at that time interest rates were that not low compared to present time.

the projected rate is jus an illustration... and is clearly stated as non-guaranteed.

the plan looks fine for someone who do not wan to manage their own savings/investment.... the guaranteed portion alone is roughly about 2.5% p.a. ( the ytm of 30 year US T-bills now is about 3.3% if im not wrong)

 

[SpinFire]

Got pointed to this thread by another thread created.

Looks like a normal annuity with very high non-guranteed projected values.

On the other hand, the insurance sales person is guranteed to get a high commission

 

[LiteHouse]

More like your agent can retire happy

 

[matchy]

how much to pay per mth?

 

[Alexandra+]

I got quoted for yearly. ~4k+...

 

[LiteHouse]

I got quoted for yearly. ~4k+...

15 year term? $4k x 15 = at least $60k kena makan and locked for so many years.

 

[SpinFire]

15 year term? $4k x 15 = at least $60k kena makan and locked for so many years.

The agent makes at least 1.5 yr of premiums ($6k).

 

[mastermember]

The agent makes at least 1.5 yr of premiums ($6k).

What is the amount of commissions that these agents earn? IS it a percentage or ...?

 

[jinmuddy]

why not just buy some ETFs every month? Safer and cheaper. But must have the discipline to lock in and buy units every month.

The returns will not be much worse and less admin costs as well.

 

[AngeLeo]

15 year term? $4k x 15 = at least $60k kena makan and locked for so many years.

$4k x 15 yrs = $60k

but payout is $7.6k+ p.a for 15 years guaranteed. Non-guaranteed additional $116k+ lump sum.

This is for a leveled payout, what you're getting cannot hedge against inflation.

For an inflated payout of course will cost more.

Definitely not for those who cannot afford. It's for people who wants to secure their retirement, for those who plan ahead with a budget and don't want any risks. In fact still can use SRS to ****** tax.

This is called annuity, it's the same as CPF Life.

Aviva has MyRetirement that is the same, returns not as attractive though.

 

[FP_IFA]

Aviva MyRetirement payout is only 10 years. The last time I check out the AXA plan, the annualise return is less than 3% and I thought the Aviva plan return is higher. And then you also have TM Retirement plan which pay out for life while keeping your capital intact.

The market is full of such products now as retirement becomes an important issue here.

 

[tiny]

Aviva MyRetirement payout is only 10 years. The last time I check out the AXA plan, the annualise return is less than 3% and I thought the Aviva plan return is higher. And then you also have TM Retirement plan which pay out for life while keeping your capital intact.

The market is full of such products now as retirement becomes an important issue here.

Tokio Marine's retirement plan seems more attractive with payout for life (until death). Policyowner can choose to surrender and encash the retirement plan whenever see fit past age 65.

Other plans have limited years of payout + maturity/longevity/congratulations benefit at age 80/85/etc...

 

[Dividends Warrior]

why not just buy some ETFs every month? Safer and cheaper. But must have the discipline to lock in and buy units every month.

The returns will not be much worse and less admin costs as well.

Most people are not disciplined. It is human nature to spend spend spend.

 

[Monasboy]

Aviva MyRetirement payout is only 10 years. The last time I check out the AXA plan, the annualise return is less than 3% and I thought the Aviva plan return is higher. And then you also have TM Retirement plan which pay out for life while keeping your capital intact.

The market is full of such products now as retirement becomes an important issue here.

3% so low lea... Infraction much more higher than that... And how many Singaporean as employee really can retire when they old? Even having a child also hard dun talk about retirement

 

[FP_IFA]

3% so low lea... Infraction much more higher than that... And how many Singaporean as employee really can retire when they old? Even having a child also hard dun talk about retirement

Inflation you mean.

There are options out there to get better returns. It is a matter of whether what is suitable for you. But whatever you do, do not give an excuse that it is hard and then give up. A lot of time it is just about managing your daily expenses and liability.

 

[FP_IFA]

Most people are not disciplined. It is human nature to spend spend spend.

I would word it as human nature to spend on easy money. To many money gain from investment is easy money, especially if the gain is over a small period of time.

The most profitable investors are those of low profile and disciplined. Hard to find these groups of people.