The dark fact that retiring is “expensive” is dawning on many Singaporeans. Due to rising living standards and inflation, the cost of sustaining your golden years will likely increase, making a sufficient income and retirement planning in Singapore a top consideration.
In retirement, we will probably wish to travel more to make the most of the years we are still physically fit and healthy. This is common in the first ten to twenty years after quitting work. Additionally, it’s normal to search for things to do when we have more spare time, which could raise costs.
The results of a retirement poll show that travelling, spending time with relatives and close friends, and engaging in hobbies are the top three retirement bucket list activities. Not much of that is inexpensive.
The following four insurance plans can help you save money for retirement. Conventional Annuity Annuities pay monthly or annually for as many years as you live. It entails making a single premium payment or a set of instalments over a certain period to an insurer. The insurance premiums are invested to give you a consistent income that is typically certain.
Most retirees are concerned about running out of money, so monthly distributions from an annuity, especially if these are certain and for life, provide them peace of mind. A retirement plan’s foundation for creating retirement income flows frequently includes such a policy. Any remaining monetary value will be given to the insured’s beneficiaries in the event of an early death.
Insurance for Retirement Income
As a retirement insurance policyholder, you can select your desired retirement age and income level to begin collecting benefits over a specific time frame. The premium will vary depending on your age and the alternatives you select. Your age and the options you choose will affect the premium.
Some of these plans let the consumer choose between five, ten, fifteen, and twenty years of income payment beginning at age 55, in addition to the lifelong income option.
Flexibility is the primary benefit of a retirement income insurance policy such as RetireSavvy. Since everyone has various expectations for their retirement (in terms of age, lifestyle, health, etc.), a flexible plan is essential to meet a range of needs.
Whole Life Coverage
Usually, whole life insurance lasts the insured person’s whole life. This is assuming the insured pays the needed premiums or until a predetermined maturity date, such as age 100.
In addition to protecting by paying out to your beneficiaries in the case of your death or complete and permanent disability, whole life insurance products also offer a savings component. If you need the money in your later years, you can use the savings component (surrender value) by giving up the policy. To cover serious illnesses, some provide a rider.
Manulife, which IncomeSecure, a complete life insurance income plan, is one such plan. It pays out annually from the end of the policy in the third, fifth, or tenth year until the policyholder reaches the age of 120. Death and terminal sickness are covered, and if you become completely and permanently disabled, you can even receive a premium waiver while your coverage is still in effect.
Endowment Policy
An endowment policy blends investing, savings, and protection. Whole life and endowment plans are similar in including savings and protection components. Endowment policies, on the other hand, have more constrained and shorter coverage periods. In each of these circumstances, they provide benefits:
- Death or complete and irreversible impairment, or
- When the policy’s maturity date arrives
- Your premiums are used to invest in financial markets and purchase a protection plan that provides compensation in the occurrence of death or total and permanent incapacity.
- Endowment policies are most frequently used for two purposes:
- Covering the costs of children’s education
Retirement
The policy can be customized to meet your needs. The plan may be shorter in duration, say 10 to 20 years, if the goal is a child’s education. Additionally, the benefits are often received as a one-time payment upon maturity.
