TM Retirement Gio

[unblocksky]

I'm in my late forties & planning a buy annuity for my retirement After some searching, I find TM Retirement Gio (http://www.tokiomarine.com/sg/en/personal/save/for-your-retirement/tm-retirement-gio.html) is consider a better one. Their surrender value is locked even after receiving payouts. Need advice from the experts here to help in viewing this plan or can recommend a better plan.

 

[ashao911]

I'm in my late forties & planning a buy annuity for my retirement After some searching, I find TM Retirement Gio (http://www.tokiomarine.com/sg/en/personal/save/for-your-retirement/tm-retirement-gio.html) is consider a better one. Their surrender value is locked even after receiving payouts. Need advice from the experts here to help in viewing this plan or can recommend a better plan.

I get this TM retirement and Aviva from my FA. He helps me to compare with others.

 

[raysdad]

Just bought this to supplement retirement income (fully protected under SDIC) in addition to CPF payout of $1,860 to $2,000 each my wife and I are expecting to receive at 65. Also in case for some unforeseen circumstances, my spouse and I are unable to work/trade/invest.


This basically starts to add 500 SGD per month at 55 for life using slightly more 100k. At anytime, the Death benefit (guaranteed) is always higher than the premium paid. The Surrender value (guaranteed) is always higher than the premium paid.

Just something I did a quick comparison with a few other plans and the part I like is the Capital preservation part which means the annuities I received are pure interest and not the premiums (capital) (most products gives higher annual payout but they simply "eat" into your capital). This is bought using funds that I have apportioned for low risk (same realm as FDs) (this product is classified under Risk rating P1 .. lowest risk), to target a better than FD returns, and using less than 4% of funds in this basket/risk rating and for funds that I would not need for the next 10 years...

This is the actual number I received based on my current age.

Now at 45:
Pay 22190 for 5 years (i.e. 110950)... then receive 5800 SGD per year for rest of life at age 55 (10 years).
Death benefit always higher than 110950 (guaranteed) at every year starting from year 1.
Surrender value is at least 110950 (guaranteed) at 55.. the year the payout starts.

Not selling this product... just Sharing data in case useful to some...

Just a warm up to retirement planning... any other good recommendation (short term (yearly), mid term (5-10 years), long term (more than 10 years) with low risk, and higher than FD rates are most appreciated...

 

[raysdad]

This is one "negative" opinion

https://www.ifa.sg/tm-retirement-gio/

But to me, having less payout but preserving capital is a good thing ...

 

[SBC]

Better dun rely too much of these public retirement scheme.

Look at the fighting going on.

 

[raysdad]

Better dun rely too much of these public retirement scheme.

Look at the fighting going on.

Any info/source to share? Total novice here.


My reasoning/thinking for this 100k:

I kept the current purchase to just <4% of total funds (for low risk).

For this 100k, say Singapore FD rate remain at 1.4% on average for the next 10 years, my risk is not gaining this extra 14000SGD FD interest if I decide to surrender by 10th year (guaranteed break-even).

Thereafter, at subsequent payout years, this should be at a lot higher than FD returns. If for some reasons the payout is poor for some reason, I can surrender anytime for >100k (100k is guaranteed).

 

[audiovideo]

For 5yrs premium, the cash benefit at 5th year Onward for 100k is yearly 3.8%. If fd keeps at 1.4%, 3.8% is much higher. Is it a good deal?

 

[audiovideo]

With capital protection and insured by sdic,maybe 5yrs is worth waiting

 

[SBC]

Is the actual bonus payment on track as per IB?

 

[audiovideo]

need someone already reached pay out age to advise

 

[stellamara]

Any info/source to share? Total novice here.


My reasoning/thinking for this 100k:

I kept the current purchase to just <4% of total funds (for low risk).

For this 100k, say Singapore FD rate remain at 1.4% on average for the next 10 years, my risk is not gaining this extra 14000SGD FD interest if I decide to surrender by 10th year (guaranteed break-even).

Thereafter, at subsequent payout years, this should be at a lot higher than FD returns. If for some reasons the payout is poor for some reason, I can surrender anytime for >100k (100k is guaranteed).

you mean you have a 2.7 mil total fund?

if so why would you buy in this?

 

[raysdad]

you mean you have a 2.7 mil total fund?

if so why would you buy in this?

More now (increasing at 250k +/year if fully on passive)... "total funds" here are "funds allocated for very low risk". Some reasons for buying this annuity: a) capital fully protected; the 100k fully backed by SDIC (that's why I started with 100k per name per insurer) b) this is fund that I will likely not touch in my lifetime and placing them in alternatives like FDs, SSB, endowments pays only 1-3% PA c) Only risk is insurer not paying and insurer paying less than targeted close to 4-5%

 

[audiovideo]

More now (increasing at 250k +/year if fully on passive)... "total funds" here are "funds allocated for very low risk". Some reasons for buying this annuity: a) capital fully protected; the 100k fully backed by SDIC (that's why I started with 100k per name per insurer) b) this is fund that I will likely not touch in my lifetime and placing them in alternatives like FDs, SSB, endowments pays only 1-3% PA c) Only risk is insurer not paying and insurer paying less than targeted close to 4-5%

in the illustration table of cash payout at age 55 onwards, what is the guaranteed amount per year for $100k?

Total payout annually is it 3.8% or 5.8%?

 

[raysdad]

in the illustration table of cash payout at age 55 onwards, what is the guaranteed amount per year for $100k?

Total payout annually is it 3.8% or 5.8%?

Just checked my policy details. Bought at 45, pay annually for 5 years, payout @ year 10 at 55. Breakeven (surrender value > total premium paid)) at and after payout year which is @55.

Annual Payout: For slightly more than 100k policy (think around 107k), guaranteed 2000 SGD (1.85% PA) annually; not guaranteed 5800 annually (around 5.4% PA). Was told TM had not failed to pay the non-guaranteed component before. Lifetime payment. Key for this plan is 100% capital preservation (no drawdown); Pure yield.

Currently bought 200k (me and my wife at around 100k each for utilise SDIC protection 100k per name per insurer). If anyone know a better annuity, pls share .

 

[audiovideo]

Just checked my policy details. Bought at 45, pay annually for 5 years, payout @ year 10 at 55. Breakeven (surrender value > total premium paid)) at and after payout year which is @55.

Annual Payout: For slightly more than 100k policy (think around 107k), guaranteed 2000 SGD (1.85% PA) annually; not guaranteed 5800 annually (around 5.4% PA). Was told TM had not failed to pay the non-guaranteed component before. Lifetime payment. Key for this plan is 100% capital preservation (no drawdown); Pure yield.

Currently bought 200k (me and my wife at around 100k each for utilise SDIC protection 100k per name per insurer). If anyone know a better annuity, pls share .

somehow if the premium duration is longer or payout date is further ... as in your case is 10yrs... the guarantee and non-guarantee amount is higher. For me, I pay premium for 5yrs and payout is on the 5th year but the guarantee is only $1300+ and non-guarantee is $2500 ... Am I kena short changed?

 

[mSnooze]

somehow if the premium duration is longer or payout date is further ... as in your case is 10yrs... the guarantee and non-guarantee amount is higher. For me, I pay premium for 5yrs and payout is on the 5th year but the guarantee is only $1300+ and non-guarantee is $2500 ... Am I kena short changed?

The lower the premium paying period and the further the payout date (longer accumulation period), the return will be higher.

For your case, because you do not have any accumulation period, therefore your guaranteed + non guaranteed return is lower.

 

[mSnooze]

Just checked my policy details. Bought at 45, pay annually for 5 years, payout @ year 10 at 55. Breakeven (surrender value > total premium paid)) at and after payout year which is @55.

Annual Payout: For slightly more than 100k policy (think around 107k), guaranteed 2000 SGD (1.85% PA) annually; not guaranteed 5800 annually (around 5.4% PA). Was told TM had not failed to pay the non-guaranteed component before. Lifetime payment. Key for this plan is 100% capital preservation (no drawdown); Pure yield.

Currently bought 200k (me and my wife at around 100k each for utilise SDIC protection 100k per name per insurer). If anyone know a better annuity, pls share .

Understand that you like plans that do not have drawdown of surrender value for annuity payout, but in return you will get lower guaranteed payout.
Lets not look at non-guaranteed, after all no matter who say what, it is still non-guaranteed.

Even if you take your 100% capital preservation for surrender value at any future years + all the guaranteed yearly payout, this plan will still lose to those plans that pay high guaranteed payout, but with drawdown of surrender value, simply due to impact that inflation has on the time value of money.
It is always better to take more money now when your dollar value is stronger and has more purchasing power than future.

 

[JuniorLion]

Just checked my policy details. Bought at 45, pay annually for 5 years, payout @ year 10 at 55. Breakeven (surrender value > total premium paid)) at and after payout year which is @55.

Annual Payout: For slightly more than 100k policy (think around 107k), guaranteed 2000 SGD (1.85% PA) annually; not guaranteed 5800 annually (around 5.4% PA). Was told TM had not failed to pay the non-guaranteed component before. Lifetime payment. Key for this plan is 100% capital preservation (no drawdown); Pure yield.

Currently bought 200k (me and my wife at around 100k each for utilise SDIC protection 100k per name per insurer). If anyone know a better annuity, pls share .

What is the name of this type of policy?

 

[raysdad]

What is the name of this type of policy?

As per thread title.. bought via Bank of China

 

[JuniorLion]

Nothing is free in this world.

There is a cost to "capital preservation", just that it is packaged nicely many times over and becomes hidden to you.

If anything, buying DPI whole life and then surrendering it 30 years later would yield better returns.