SRS for insurance

[sesame246]

hi,
any recommendation what products to consider? Also, if my SRS is with bank A, can i purchase Bank's B products?

thanks for advice.

 

[Jupiter2017]

hi,
any recommendation what products to consider? Also, if my SRS is with bank A, can i purchase Bank's B products?

thanks for advice.

SRS funds can be invested in the following :
• Bonds
• Fixed Deposits
• Foreign Currency Fixed Deposits
• Shares
• Single Premium Insurance
• Unit Trusts

I use my SRS to invest in shares, specifically a few solid REITs.

Regarding insurance products, not advisable.

 

[BBCWatcher]

Regarding insurance products, not advisable.

Well, maybe a single premium lifetime annuity if you're trying to extend/improve your SRS's tax advantages in a particular way, and then only for part of your SRS. But this is quite rare, and you still wouldn't want to purchase any such product if it's a poor value.

 

[lzydata]

According to SRS statistics from the Ministry of Finance, as of December 2016, insurance makes up 22% of the SRS investment portfolio (at cost). After cash at 34% (!) and shares/REITs/ETFs at 28%.

http://www.mof.gov.sg/Portals/0/mof for/individuals/srs/Compiled SRS stats for 2016.pdf
from http://www.mof.gov.sg/MOF-For/Individuals/Supplementary-Retirement-Scheme-SRS

It's also a mystery to me what everybody is buying. Might be sold by banks.

 

[Jupiter2017]

If not hitting age 62 yet, it is the best time to invest SRS for higher returns. Buying a single premium insurance product will get you ‘stucked’ for some years at low yield and possibly ‘regrets’. Based on some threads in this forum, there are on-going comments from people expressing regrets over buying certain insurance products.

When nearing age 62, can consider withdrawing SRS in 10 instalments to fund retirement living expense from age 62 to 70, while extending CPFLife payout age to 70 to maximize CPFLife payouts from age 70 onwards. If the yearly SRS withdrawal amounts is more than sufficient to meet living expense, then use part of it to do an annual top up to maximise CPFLife prevailing ERS & Retirement a/c from age 62 to 70. This will further enhance CPFLife/Retirement a/c payout from age 70 onwards. This approach may be better than trying to buy a 2nd annuity, and also leave a lump sum cash fund on hand to meet life's uncertainties.

 

[BBCWatcher]

When nearing age 62, can consider withdrawing SRS in 10 instalments to fund retirement living expense from age 62 to 70....

This approach doesn't work too well from a tax point of view -- or as well as it could -- if you have substantial taxable income during this period of time.

Buying a single premium lifetime annuity with SRS funds is a possible way for those with large SRS accounts to optimize tax.

 

[JuniorLion]

You can withdraw any time after 62. Say you decide to retire at 70, then you can start your withdrawal at 70.. to minimize tax payments.

If not hitting age 62 yet, it is the best time to invest SRS for higher returns. Buying a single premium insurance product will get you ‘stucked’ for some years at low yield and possibly ‘regrets’. Based on some threads in this forum, there are on-going comments from people expressing regrets over buying certain insurance products.

When nearing age 62, can consider withdrawing SRS in 10 instalments to fund retirement living expense from age 62 to 70, while extending CPFLife payout age to 70 to maximize CPFLife payouts from age 70 onwards. If the yearly SRS withdrawal amounts is more than sufficient to meet living expense, then use part of it to do an annual top up to maximise CPFLife prevailing ERS & Retirement a/c from age 62 to 70. This will further enhance CPFLife/Retirement a/c payout from age 70 onwards. This approach may be better than trying to buy a 2nd annuity, and also leave a lump sum cash fund on hand to meet life's uncertainties.

 

[royalmix]

According to SRS statistics from the Ministry of Finance, as of December 2016, insurance makes up 22% of the SRS investment portfolio (at cost). After cash at 34% (!) and shares/REITs/ETFs at 28%.

http://www.mof.gov.sg/Portals/0/mof for/individuals/srs/Compiled SRS stats for 2016.pdf
from http://www.mof.gov.sg/MOF-For/Individuals/Supplementary-Retirement-Scheme-SRS

It's also a mystery to me what everybody is buying. Might be sold by banks.

I bought a single premium insurance policy, return is more than 4%, almost guaranteed, but must hold for 15 years. Want to buy more when got more SRS money, too bad no longer available.

So I guess many other people like me, jump at the opportunity at that time.

 

[mynickname]

I bought a single premium insurance policy, return is more than 4%, almost guaranteed, but must hold for 15 years. Want to buy more when got more SRS money, too bad no longer available.

So I guess many other people like me, jump at the opportunity at that time.

Sounds like uob maxi

 

[camholicx]

my SRS is $0 now, and I am 37years old. What should I go for now?

 

[BBCWatcher]

What should I go for now?

Has your and your spouse's CPF Medisave and Special Accounts reached their tax advantaged top-up maximums yet (Basic Healthcare Sum and Full Retirement Sum)? If not, start with that.

 

[camholicx]

Has your and your spouse's CPF Medisave and Special Accounts reached their tax advantaged top-up maximums yet (Basic Healthcare Sum and Full Retirement Sum)? If not, start with that.

my SA still far from max.

 

[andyhtc]

I'm introduced to GE PrimeGold Bonus 2 (20 years) single premium using SRS by OCBC. For an initial once off payment of $15,300, the 20 years guaranteed return is $1,147 on maturity. Are there any better plans for SRS, please?

 

[JuniorLion]

I'm introduced to GE PrimeGold Bonus 2 (20 years) single premium using SRS by OCBC. For an initial once off payment of $15,300, the 20 years guaranteed return is $1,147 on maturity. Are there any better plans for SRS, please?

You're better off using SRS to buy some solid blue chips, rather than endowment plans by Banks/Insurance companies.

If you don't want to, then single premium endowments is decent enough to be considered second or third best.

 

[andyhtc]

You're better off using SRS to buy some solid blue chips, rather than endowment plans by Banks/Insurance companies.

If you don't want to, then single premium endowments is decent enough to be considered second or third best.

I still prefer to protect my SRS capital as blue chips can still decline over a span of 20 years and ETF may fluctuate.

The best that I can find now is this Manulife RetireReady insurance:

Manulife RetireReady is a retirement income plan that gives you the certainty of a Guaranteed Monthly Income¹ up to 2.57% ² a year**, flexibility and 2X Guaranteed Monthly Income should you face Loss of Independence.

https://www.manulife.com.sg/our-solutions/save/retirement/retire-ready.html

 

[BBCWatcher]

According to this author, NTUC Income has a much better deal in this category.

Please just ignore the non-guaranteed figures. And the non-lifetime options don’t actually work well for SRS accounts due to the tax rules.

 

[JuniorLion]

I still prefer to protect my SRS capital as blue chips can still decline over a span of 20 years and ETF may fluctuate.

The best that I can find now is this Manulife RetireReady insurance:

Manulife RetireReady is a retirement income plan that gives you the certainty of a Guaranteed Monthly Income¹ up to 2.57% ² a year**, flexibility and 2X Guaranteed Monthly Income should you face Loss of Independence.

https://www.manulife.com.sg/our-solutions/save/retirement/retire-ready.html

No blue chips nor ETF is 100% guaranteed. Neither are endowment plans. But yeah, I guess the retirement/endowment/savings plan is as good as the company offering it. In Singapore, MAS will protect your plans.