Annuity plan

[boredboiboi]

Seen. Thanks. Looks like company M overall is good against a few others.

And now got promotion too

 

[gold_eagle36]

Yes, it’s true with one annuity: Manulife’s single premium life annuity. And it’s up to $40,000 per year of annuity payouts since 50% is taxable. Only life annuities can be fully SRS qualified, and that’s currently the only one that is.

In this context,
Is TS able to generate a quote for M
Today's terms for a single premium SRS for lifetime annuity. 3.3k payout per month to keep below 40k per year.

In short, what is the single premium needed for lifetime annuity (payout age immediate at 62) of 3.3k payout

 

[winthony]

In this context,
Is TS able to generate a quote for M
Today's terms for a single premium SRS for lifetime annuity. 3.3k payout per month to keep below 40k per year.

In short, what is the single premium needed for lifetime annuity (payout age immediate at 62) of 3.3k payout

Assuming you are 29 this year going 30, non smoker

Under M , retirement age of 60, monthly payout lifetime of 3.3k and total accumulated annual bonus at retirement age.

your single premium from SRS would be $880215.60

 

[boredboiboi]

In this context,
Is TS able to generate a quote for M
Today's terms for a single premium SRS for lifetime annuity. 3.3k payout per month to keep below 40k per year.

In short, what is the single premium needed for lifetime annuity (payout age immediate at 62) of 3.3k payout

What is your age and gender?in order to better and accurate generate?

Payout can only payout at age 60 or 65 and money will be payout into srs acccount.

With guaranteed min 3300 monthly

Male 35
Payout start 60 - $1018587.90
Payout start 65 - $848314.50

Male 40
Payout start 60 - $1090471.80
Payout start 65 - $916037.01

Male 45
Payout start 60 - $114096.60
Payout start 65 - $979793.10

Male 50
Payout start 60 - $1204559.40
Payout start 65 - $1029771.60

 

[moejoseph]

In this context,
Is TS able to generate a quote for M
Today's terms for a single premium SRS for lifetime annuity. 3.3k payout per month to keep below 40k per year.

In short, what is the single premium needed for lifetime annuity (payout age immediate at 62) of 3.3k payout

Based on ANB 29, non-smoker

Company X @ $534,916 lump sum
- Guaranteed Annual Payout $39,605
- From age 60, lifetime till 99.
- With option to withdraw bonus together annually or redeposit

Updated info: Above are guaranteed.
Non-G portion usually i won't mention unless being asked. Can refer to below if keen


d20 dice simulator

 

[boredboiboi]

Based on ANB 29, non-smoker

Company X @ $534,916 lump sum
Annual payout $39,605 from age 60, lifetime. With option to withdraw bonus together annually or redeposit

Do input the info. If is guaranteed or with non guaranteed at what % etc.

 

[moejoseph]

Do input the info. If is guaranteed or with non guaranteed at what % etc.

Updated in the previous post. Usually i only mention about Guaranteed portion.

Returns are good because of long time horizon (29 to 60)

 

[boredboiboi]

Updated in the previous post. Usually i only mention about Guaranteed portion.

Returns are good because of long time horizon (29 to 60)

But realise all the premium cannot be done with the annual limit contribution of $15300.

 

[moejoseph]

But realise all the premium cannot be done with the annual limit contribution of $15300.

Yea for SRS is difficult for huge amount, as not worth it to put in too much amount just for SRS tax relief.

Usually recommend to do just nice the $15,300 and get lower payout

 

[gold_eagle36]

Think I didnt clarify. Actually trying to reverse calculate for lump sum srs annuity purchase at 62 when withdrawal is allowed.

So for example, accumulate 600k+ srs balance at 62 and purchase annuity. It seems that the amount will be quite large for a 3k payout since there will be no/ not much accumulation phase?

 

[moejoseph]

Think I didnt clarify. Actually trying to reverse calculate for lump sum srs annuity purchase at 62 when withdrawal is allowed.

So for example, accumulate 600k+ srs balance at 62 and purchase annuity. It seems that the amount will be quite large for a 3k payout since there will be no/ not much accumulation phase?

Ya coz not much time to accumulate.

If ANB 62, SRS lumpsum premium will be $775,646.48

Withdrawal can only starts at 70 though, $39,600/year lifetime till 99

If prefer to withdraw starting age 67, lumpsum required will be $1,109,523.60

 

[boredboiboi]

Think I didnt clarify. Actually trying to reverse calculate for lump sum srs annuity purchase at 62 when withdrawal is allowed.

So for example, accumulate 600k+ srs balance at 62 and purchase annuity. It seems that the amount will be quite large for a 3k payout since there will be no/ not much accumulation phase?

Annuity does not payout immediately after premium as per what you describe and for company M the payout start age only have 60 or 65 or 70 but dont have 62.And usually need 5 year to accumulate before payout starts.

 

[BBCWatcher]

Based on ANB 29, non-smoker
Company X @ $534,916 lump sum
- Guaranteed Annual Payout $39,605
- From age 60, lifetime till 99.
- With option to withdraw bonus together annually or redeposit
Updated info: Above are guaranteed.
Non-G portion usually i won't mention unless being asked. Can refer to below if keen

This is useless information for the person posing the question. The question is about using SRS account funds. An annuity that runs to age 99 can never be IRAS/SRS qualified, so it would be subject to deemed income tax in the 10th year on the full remaining value of the annuity. Ick.

Annuity does not payout immediately after premium as per what you describe and for company M the payout start age only have 60 or 65 or 70 but dont have 62.And usually need 5 year to accumulate before payout starts.

It's really, really puzzling to me why Singapore's "fine" insurance companies cannot even seem to read the government's Supplementary Retirement Scheme (SRS) publications. Do you have any explanation for this mismatch?

What at least some SRS account holders would like is a fully IRAS compliant way to draw down their SRS accounts over their lifetimes -- and with the tax advantaged withdrawal window lasting that long, too. That requires a single premium life annuity. So why is it apparently so difficult to provide single premium, immediate, guaranteed life annuities with payout start at age 62, 63, 64, etc? (Age 62 is the minimum qualified SRS withdrawal age.) This is not rocket science in other financial markets (plural). NTUC even stopped selling their single premium life annuity that was fully SRS qualified, which I find mystifying, really.

 

[moejoseph]

This is useless information for the person posing the question. The question is about using SRS account funds. An annuity that runs to age 99 can never be IRAS/SRS qualified, so it would be subject to deemed income tax in the 10th year on the full remaining value of the annuity. Ick.


It's really, really puzzling to me why Singapore's "fine" insurance companies cannot even seem to read the government's Supplementary Retirement Scheme (SRS) publications. Do you have any explanation for this mismatch?

What at least some SRS account holders would like is a fully IRAS compliant way to draw down their SRS accounts over their lifetimes -- and with the tax advantaged withdrawal window lasting that long, too. That requires a single premium life annuity. So why is it apparently so difficult to provide single premium, immediate, guaranteed life annuities with payout start at age 62, 63, 64, etc? (Age 62 is the minimum qualified SRS withdrawal age.) This is not rocket science in other financial markets (plural). NTUC even stopped selling their single premium life annuity that was fully SRS qualified, which I find mystifying, really.

We are just answering the poster accordingly when lifetime is being asked.

Personally i don't think SRS is good unless one can properly "plan" in such a way that they don't exceed the non-taxable income amount for the 10 years. We may be able to get tax relief for now, but with a huge amount accumulated, these will be charged back to us when we withdraw at a later age, albeit lower (with some planning). The govt is not dumb, am sure they calculate everything beforehand.

Usually if a person put in $15,300/year, and for a number of years, this amount is sure to roll, especially when they do investment or other stuffs. 10 years sure won't be sufficient to withdraw everything without tax. The govt give u some benefits, they sure be smart enough to get some back later.

Insurers are not charitable organisations, hence reasonable for them to want to make profits. Some insurers do allow "weird" ages at 62,63,64... but you must time it correctly because a 5 years waiting period is still required for the money to grow. So if someone wants to withdraw at age 62, he can choose to do the lumpsum at age 57, if he chooses the correct plan which allows so.

 

[BBCWatcher]

We are just answering the poster accordingly when lifetime is being asked.

No you're not. Maximum age 99 isn't lifetime. Lifetime is lifetime.

 

[moejoseph]

No you're not. Maximum age 99 isn't lifetime. Lifetime is lifetime.

Not much diff to me if annuity pay out only till death, followed by the lumpsum payout after that (usually non-guaranteed). Unless u telling me people can live beyond 99.

Of course there are those annuity that pays till 120 which can be passed down to the next generation, but if u are talking about SRS, then this is not possible.

 

[maple96]

SRS annuity is the only asset u have to pay "estate duty" upon death, do u plan to do that?

 

[gold_eagle36]

Having seen all the replies. I think one strategy, assuming no income after 62 would be to withdraw
40k per year, acordingly if srs amount <400k.

If srs account is large at >400k.
Can provision a set amount and purchase lifetime aunnity at 60 for payout 65/70 onwards.

Then from 62 onwards, just draw out 40k per year till annuity payout starts.
In other words, the single premium amount will depend on the overall srs amount and the number of 40k withdrawal we can clock.

This will reduce the risk of paying an excess *estate duty" in the event that death is premature.

To add on (see iras srs webpage),
"Hence, from Year of Assessment 2016, a tax exemption of up to $400,000 would be granted for SRS funds withdrawn in full on the grounds of terminal illness or deemed withdrawn upon an SRS member's demise. This is to ensure that SRS members are not unduly disadvantaged due to terminal illness or death"

 

[Okenba]

Personally, I think sometimes people are too... focused on the idea of paying zero tax for SRS drawdown.
Yes, if you withdraw $40k per year, you pay no tax.
But if you withdraw $60k per year, you only pay $200 of tax each year. 0.3%
If you withdraw $80k per year, you only pay $550 of tax each year. 0.7%

Personally, I would not go beyond that. But 0.7% tax sounds pretty doable to me to be able to withdraw $80k per year for a $800k lump sum in SRS...

 

[gold_eagle36]

True. At the end of it. The more one accumulates the merrier.