looking for feedback on retirement plans

[Teclansi]

Hi all, am hoping to get some advice on a plan that my financial planner recently introduced to me. It's the Great Eastern Maxretire Income plan.

The plan breakdown is as follows, from what i understand/remember:

- Buyer pay a fixed sum regularly [$8000 per year], for set amount of time [33 years]
- At age 65, 67, or 70 (up to buyer to decide), buyer starts receiving monthly payouts.
- Payout amount varies depending on investment return. Monthly payout is also greater if payout begins at older age [65yo: $2655-$4010; 67yo: $3133-$4730; 70yo: $4036-$6094]
- Plan includes death benefit, but i believe that's not the main point of this plan

Figures in square brackets is the calculation that was done for me.

I hope i have understood the plan accurately. Please point out any errors if any, or if i've missed out any important points.


My questions are basically this:
1. Is this plan worth getting?
2. Are there better retirement plan options available?

For context, i am hoping to get a retirement plan that can support me. I think i'm sufficiently covered wrt insurance and other matters, so im hoping to take care of post-retirement life now.

What interests me about this plan is that it guarantees a total payout amount that is more than the total premium amount, so it sounds like i'll get more bang for my buck through this plan. I'm pretty ignorant when it comes to financial instruments though so i hope to get some confirmation/contradiction on this impression.

Thanks in advance!

 

[cscs3]

Hi all, am hoping to get some advice on a plan that my financial planner recently introduced to me. It's the Great Eastern Maxretire Income plan.

The plan breakdown is as follows, from what i understand/remember:

- Buyer pay a fixed sum regularly [$8000 per year], for set amount of time [33 years]
- At age 65, 67, or 70 (up to buyer to decide), buyer starts receiving monthly payouts.
- Payout amount varies depending on investment return. Monthly payout is also greater if payout begins at older age [65yo: $2655-$4010; 67yo: $3133-$4730; 70yo: $4036-$6094]
- Plan includes death benefit, but i believe that's not the main point of this plan

Figures in square brackets is the calculation that was done for me.

I hope i have understood the plan accurately. Please point out any errors if any, or if i've missed out any important points.


My questions are basically this:
1. Is this plan worth getting?
2. Are there better retirement plan options available?

For context, i am hoping to get a retirement plan that can support me. I think i'm sufficiently covered wrt insurance and other matters, so im hoping to take care of post-retirement life now.

What interests me about this plan is that it guarantees a total payout amount that is more than the total premium amount, so it sounds like i'll get more bang for my buck through this plan. I'm pretty ignorant when it comes to financial instruments though so i hope to get some confirmation/contradiction on this impression.

Thanks in advance!

1. No
2. Make use of CPF. Return is potentailly better and you can get tax rebates.

 

[gerimegaly]

My questions are basically this:
1. Is this plan worth getting?
2. Are there better retirement plan options available?

Thanks in advance!

1) Hard to say as it all depends on what you are looking for, in a retirement plan.
2) There are definitely many other plans available. Again, depends on what you are looking to achieve, with these plans.

 

[Wood41]

Your financial planner will be ready to retire long before any one of you ( if it works ) if a few more sign up.

 

[Bigoya]

http://forums.hardwarezone.com.sg/m...ability-care-benefit-ntuc-income-5681311.html

 

[Teclansi]

@Bigoya Thanks for the link, will check it out!

 

[Teclansi]

Thanks everyone for the responses. It appears that this plan isn't too worth it then.

 

[crimsontactics]

CPF bro

Sent from . using GAGT

 

[SBC]

CPF bro

You mean CPF Life?

 

[foozgarden]

is annuity = retirement plans?

how abt those that have guaranteed portion? so the payout is G + NG.
taking aside the NG portion.. most plans have a min G of ~500/m...
the premiums are roughly 5k/year... and start 55 payout..

do they actually form part of the retirement, part of cpf life stream..?

 

[mynickname]

1. No
2. Make use of CPF. Return is potentailly better and you can get tax rebates.

What he said.

 

[Bigoya]

is annuity = retirement plans?

how abt those that have guaranteed portion? so the payout is G + NG.
taking aside the NG portion.. most plans have a min G of ~500/m...
the premiums are roughly 5k/year... and start 55 payout..

do they actually form part of the retirement, part of cpf life stream..?

Yes. Check this thread if you haven't.
http://forums.hardwarezone.com.sg/m...ability-care-benefit-ntuc-income-5681311.html

Compared to $5k/yr u are probably putting much more into ur CPF.

 

[SBC]

Yes. Check this thread if you haven't.
http://forums.hardwarezone.com.sg/m...ability-care-benefit-ntuc-income-5681311.html

Compared to $5k/yr u are probably putting much more into ur CPF.

This could be based on paper projection return.

Can show us its actual track record over the past 5 years?

 

[Bigoya]

This could be based on paper projection return.

Can show us its actual track record over the past 5 years?

If this isn't what you are looking for, I'm not sure what else works.

 

[foozgarden]

Yes. Check this thread if you haven't.
http://forums.hardwarezone.com.sg/m...ability-care-benefit-ntuc-income-5681311.html

Compared to $5k/yr u are probably putting much more into ur CPF.

so its better to just accum the monie and hit the ERS?

 

[Bigoya]

so its better to just accum the monie and hit the ERS?

If you ask me, that pretty much depends on your current age and when do you plan to receive the payout.

If you are close to 55 now, the risk of CPF goalpost shifting is low. If you are age 25 now, you could see yourself getting the CPF payout starting at age 75.
#JustSaying.

Alternatively, an annuity plan lets you control how you wish to receive your payouts and when your wish to start receiving payouts.
And assuming you do transfer monies to SRS, you can't put the monies into CPF, but if you have nothing better to do with those monies, you could get a Single Premium annuity plan with the lump sum you already have.

Pros and Cons.

 

[foozgarden]

If you ask me, that pretty much depends on your current age and when do you plan to receive the payout.

If you are close to 55 now, the risk of CPF goalpost shifting is low. If you are age 25 now, you could see yourself getting the CPF payout starting at age 75.
#JustSaying.

Alternatively, an annuity plan lets you control how you wish to receive your payouts and when your wish to start receiving payouts.
And assuming you do transfer monies to SRS, you can't put the monies into CPF, but if you have nothing better to do with those monies, you could get a Single Premium annuity plan with the lump sum you already have.

Pros and Cons.

currenlt 37... but doing retirement planning.
i intend to start the payout ard 50 or 55..
basically for 10 years before the start of CPF life payout..
to complement the CPF life.
not sure if this makes sense

 

[Bigoya]

currenlt 37... but doing retirement planning.
i intend to start the payout ard 50 or 55..
basically for 10 years before the start of CPF life payout..
to complement the CPF life.
not sure if this makes sense

Well in terms of a savings tool, we'd have to run the BI and see if the projected and guaranteed yields make sense.

For payout to start at say age 50, how long would you be looking at for the payout term? Life expectancy of Male in SG is about 80 yrs old...
How much do you project to be able to withdraw from CPF in the future based on current rate of allocations?
Would a payout term of 15yrs in an annuity make sense? And after the annuity matures, would CPF payout be sustainable?
How much wealth do you already have today to consider a retirement in 13 yrs time?
Is that a practical/realistic planning?

 

[foozgarden]

Well in terms of a savings tool, we'd have to run the BI and see if the projected and guaranteed yields make sense.

For payout to start at say age 50, how long would you be looking at for the payout term? Life expectancy of Male in SG is about 80 yrs old...
How much do you project to be able to withdraw from CPF in the future based on current rate of allocations?
Would a payout term of 15yrs in an annuity make sense? And after the annuity matures, would CPF payout be sustainable?
How much wealth do you already have today to consider a retirement in 13 yrs time?
Is that a practical/realistic planning?

i think limited term of 10 or 15 years, so that it will at least overlap the cpf life during the initial period.
which product has the highest GI component, ceterus paribus?
does the premium differ by alot if i were to choose one that is limited 15 year, or till death?

 

[Bigoya]

i think limited term of 10 or 15 years, so that it will at least overlap the cpf life during the initial period.
which product has the highest GI component, ceterus paribus?
does the premium differ by alot if i were to choose one that is limited 15 year, or till death?

Aviva's MyRetirementChoice definitely have the highest G and NG yields for cases I've came across. There could be exceptions hence a comparison based on your ideal configuration is necessary.

Based on $500/mth guaranteed payout with 10yrs premium term, payout at age 55 for 15 yrs, annual premium is about $5.5k


Based on $500/mth guaranteed payout with 10yrs premium term, payout at age 55 for 35 yrs, annual premium is about $9.8k