Annuity plan

[Broadwalk]

I'm 43 turning to 44 soon, currently working as a Taxi driver.

I'm planning for my retirement and considering to get an Annuity plan but will like to understand more about Annuity plan.

Can someone gives me an overview of Annuity plan and how should I get started at this age so I can get abit when I reach old age.

TIA.

 

[reddevil0728]

How’s your CPF situation?

 

[Broadwalk]

How’s your CPF situation?

OA has expended for HDB flat. Less than 10k.

SA left around 100k.

MA 63k?

 

[boredboiboi]

I'm 43 turning to 44 soon, currently working as a Taxi driver.

I'm planning for my retirement and considering to get an Annuity plan but will like to understand more about Annuity plan.

Can someone gives me an overview of Annuity plan and how should I get started at this age so I can get abit when I reach old age.

TIA.

Mostly would recommend to go for cpf life.
The only con is u r not able to surrender or end cpf life if u need a large sum of money. Else cpf monthly income currently will be the best in the market. There are new type of plan that is similar to annuity which give u monthly income, and at the same time it will not depreciate your capital but the opposite which will grow your capital while taking the income

 

[Broadwalk]

Mostly would recommend to go for cpf life.
The only con is u r not able to surrender or end cpf life if u need a large sum of money. Else cpf monthly income currently will be the best in the market. There are new type of plan that is similar to annuity which give u monthly income, and at the same time it will not depreciate your capital but the opposite which will grow your capital while taking the income

I am confuse with the offerings in the market. That's why coming here seeking clarification and guidance.

I thought CPF life is mandatory but given my near zero OA and low SA, I am unsure if I will have enough for the CPF life?

I'm planning to participate an Annuity plan in hoping to claw back a few hundred to thousand dollar monthly to fund my retirement?

What will be the appropriate policy for me?

 

[SibehHL]

I am confuse with the offerings in the market. That's why coming here seeking clarification and guidance.

I thought CPF life is mandatory but given my near zero OA and low SA, I am unsure if I will have enough for the CPF life?

I'm planning to participate an Annuity plan in hoping to claw back a few hundred to thousand dollar monthly to fund my retirement?

What will be the appropriate policy for me?

Given the tender age of 44 and if financially capable, I would personally build up the SA to hit at least FRS limit ASAP. You can stop contributing at 55. Knowing you have a certain fixed sum of money starting at 65 is comforting.

I made the mistake of not doing that and missed out on the 4-6% interest collected in SA; my money was sitting idle in a bank account

 

[reddevil0728]

OA has expended for HDB flat. Less than 10k.

SA left around 100k.

MA 63k?

why do you need so many emoji in every post?

 

[boredboiboi]

I am confuse with the offerings in the market. That's why coming here seeking clarification and guidance.

I thought CPF life is mandatory but given my near zero OA and low SA, I am unsure if I will have enough for the CPF life?

I'm planning to participate an Annuity plan in hoping to claw back a few hundred to thousand dollar monthly to fund my retirement?

What will be the appropriate policy for me?

U can top up in cash. If u have enuf cash, u can go for private annuity and cpf life

 

[Broadwalk]

why do you need so many emoji in every post?

It is my writing style.

 

[Broadwalk]

U can top up in cash. If u have enuf cash, u can go for private annuity and cpf life

Which are the private annuity relevant to my background and financial situation?

I read up Tokyo Marine and Manulife it's really confusing and their products seem so similar that I do not know which one is suitable for me.

 

[boredboiboi]

Which are the private annuity relevant to my background and financial situation?

I read up Tokyo Marine and Manulife it's really confusing and their products seem so similar that I do not know which one is suitable for me.

They are similar but is which one will give u higher guaranteed etc.

 

[reddevil0728]

It is my writing style.

Painful to read. This not EDMW

 

[Broadwalk]

They are similar but is which one will give u higher guaranteed etc.

I realize they dun reveal the guaranteed figure. Tried searching for that piece of information, got one article however I ain't sure if the data and information is still accurate as of today.

 

[boredboiboi]

I realize they dun reveal the guaranteed figure. Tried searching for that piece of information, got one article however I ain't sure if the data and information is still accurate as of today.

Ya have to generate because diff age have diff premium and outcome as the accumulation period is diff.

 

[tangent314]

I am confuse with the offerings in the market. That's why coming here seeking clarification and guidance.

I thought CPF life is mandatory but given my near zero OA and low SA, I am unsure if I will have enough for the CPF life?

I'm planning to participate an Annuity plan in hoping to claw back a few hundred to thousand dollar monthly to fund my retirement?

What will be the appropriate policy for me?

CPF Life is by far the best annuity plan available in Singapore. Before considering any other annuity plans, you should always max out what you can get from CPF Life. You still have 11 years before you reach 55, plenty of time to build up your OA + SA, and after that you still have an additional 10-15 years to build up your RA before you start your CPF Life.

 

[Prof. Utonium]

Is it really mandatory for you to get a private annuity?

If so, rationale for it?

Are you aiming for BRS, FRS or ERS?

If FRS/ERS, then might as well top up the balance to hit FRS/ERS. So that when you are 55, if SA shield still works, you would be able to generate 4% from the balance in SA. This would definitely yield greater guaranteed returns.

If you are only relying on CPF for retirement and have spare for annuity I would suggest just stick to CPF and top it up so you are able to generate higher returns.

I do have private annuity bought in my mid 20s for my 50s. However, the only reason I opted for one is because I had already transferred my OA to SA so that it would still hit SA minimum sum in 30 years even if my annual contributions remains the same. Did some rough planning and calculations, courtesy of a forumer who posted his CPF excel calculation file.

Private annuity returns are not as pleasing as compared to CPF's. Unless, if you are planning to utilize your SRS fund for private annuity.

 

[Broadwalk]

CPF Life is by far the best annuity plan available in Singapore. Before considering any other annuity plans, you should always max out what you can get from CPF Life. You still have 11 years before you reach 55, plenty of time to build up your OA + SA, and after that you still have an additional 10-15 years to build up your RA before you start your CPF Life.

Thanks for your advice.

 

[Broadwalk]

Is it really mandatory for you to get a private annuity?

If so, rationale for it?

Are you aiming for BRS, FRS or ERS?

If FRS/ERS, then might as well top up the balance to hit FRS/ERS. So that when you are 55, if SA shield still works, you would be able to generate 4% from the balance in SA. This would definitely yield greater guaranteed returns.

If you are only relying on CPF for retirement and have spare for annuity I would suggest just stick to CPF and top it up so you are able to generate higher returns.

I do have private annuity bought in my mid 20s for my 50s. However, the only reason I opted for one is because I had already transferred my OA to SA so that it would still hit SA minimum sum in 30 years even if my annual contributions remains the same. Did some rough planning and calculations, courtesy of a forumer who posted his CPF excel calculation file.

Private annuity returns are not as pleasing as compared to CPF's. Unless, if you are planning to utilize your SRS fund for private annuity.

I am aiming FRS or ERS.

SRS will be direct into FSM or Robo-advisors?

 

[Prof. Utonium]

I am aiming FRS or ERS.

SRS will be direct into FSM or Robo-advisors?

Then just top up your CPF to meet FRS/ERS, since your investment/retirement vehicle is limited to solely CPF which had not met the minimum required for FRS [in this thread context].

SRS so far can only open through the local banks. Then from there you can choose to go with FSM/Robo, whichever fits your choice.