4 Best Retirement Plans for Highest Income Payout in Singapore (2021 Edition)

We look into retirement plans and annuities with the best value for your retirement planning.

Retirement plans or annuities, when paired together with your lifelong payout from your CPF LIFE, can supplement your retirement income during your golden years. You can even expect a payout multiplier (2x) due to disability or when you are unable to perform a minimum 2/3 of 6 ADLs.

As you will be committing a significant portion of your life savings, ensure that the payout for your retirement plan is competitive and personalised to your needs.

For this comprehensive review, InterestGuru.sg look into the best retirement plans that provide the highest income payout towards meeting your lifestyle needs and expenses.

Related article: The Complete Guide to Retirement Planning (2021 Edition) *NEW*

What makes a good retirement plan or annuity policy?

The main objective of a retirement plan or annuity policy would be to provide a consistent stream of income starting from your preferred retirement age. Ideally, a shorter premium tenor would provide the highest yield to the maturity of the policy.

Depending on individual retirement plans, additional options may even be available to further optimise your overall financial yields.

Our pick for the 4 Best Retirement Plans and Annuities in Features and Income Payout are based on the criteria below:

  • Policy options available for premium tenor
  • Policy options available for the period of income payout
  • The rate of financial returns and payout (Guaranteed and Non-Guaranteed)
  • Choice and features of riders to complement health coverage (Additional guaranteed payout)
  • Product features unique to the listed retirement plans

Click here to compare retirement plans and annuity policies across insurers.

Read also3 things to consider before taking up a new financial product

Read also: 8 commonly made financial mistakes in Singapore

With all insurance companies in Singapore offering their own retirement plans, make sure you select only the best for yourself!

Why do you need a retirement plan?

Your CPF LIFE payout will supplement your income during your retirement and assist with your basic living needs. However, it will not be realistic to expect CPF Life to provide a high level of comfort for your lifestyle.

Consider the following questions:

  • Are you looking to still have a high and stable income despite a lower workload as you ages?
  • Are you still preparing your financials to sustain your lifestyle when you stop working?
  • Is maintaining a specific lifestyle important even as daily costs go up?
  • Does your ideal retirement lifestyle involve discretionary spending such as frequent overseas travelling?
  • Are stability and predictability what you seek in a financial product when it comes to your income stream during your retirement years? 

If your answer to the above questions is mostly yes, you may wish to consider taking up a retirement plan for a constant stream of income.

Basics of retirement planning: How does a retirement plan work?

Basics of retirement planning: When should you start saving for your retirement?

The best retirement plans based on features and income payout

In no order of preferences or ranking, we present the best retirement plans that offer a stream of the highest income payout to meet your retirement needs.

As your retirement goals and objectives are unique based on your individual expectation, ensure that your retirement plan is customised to fit your lifestyle needs.

Best High Income Retirement Plan for Guaranteed Payout – Manulife RetireReady Plus III

Manulife RetireReady Plus III
Manulife RetireReady Plus III

Manulife RetireReady Plus III is a retirement income plan that gives you the flexibility to choose:

  • Your desired retirement age at 55. 60, 65 or 70 years old
  • Income payout period of up to 80, or up to 90 or for a lifetime
  • Your desired amount of monthly guaranteed income
  • Your desired premium payment term of 5, 10, 20 years or single premium (SRS option available)

What’s NEW in Manulife RetireReady Plus III:

  • Retrenchment benefit is now 50% of your annual premium (up from 40% with RetireReady Plus II)

Manulife RetireReady Plus III Benefit Table

RetireReady Plus III will be 100% principal guaranteed upon retirement age and comes with Loss of Independence Benefits which is equivalent to your monthly guaranteed income payable should you not be able to perform 3 out of 6 Activities of Daily Living (ADLs).

Should you be unable to perform at least 2 of 6 ADLs, the monthly guaranteed income payable will still be increased by 50%. RetireReady Plus III is also a hassle-free application. There is no need for health underwriting and it also provides a premium waiver should you be disabled during the premium payment period.

It is also worth noting that the revised projected return rate is now 3% and 4.25% from previously 3.25% and 4.75% respectively.

Policy Illustration for Manulife RetireReady Plus III

Policy Illustration for Manulife RetireReady Plus III

At age 35, Carey purchases Manulife RetireReady Plus III to plan for her retirement. She pays a yearly premium of S$19,530 for the next 20 years.

Carey chooses to convert her non-guaranteed cash bonus into additional monthly income.

During this period until the end of the premium payment term, should Carey become retrenched, she will receive S$9,765 (50% x yearly premium) in retrenchment benefit.

With a total of S$390,600 paid in premiums, Carey, now age 66, starts receiving a projected monthly retirement income of S$3,143.10 per month for the next 20 years.

In the event that Carey becomes disabled during the payout period, Manulife RetireReady Plus III will give her an additional of 1x or 2x the guaranteed monthly income per month depending on the severity of her disability.

By age 85, Carey received a total projected S$1,234,358.40 in retirement income with just S$390,600 paid in premiums, a good 257% return on her investments.

Conclusion on Manulife RetireReady Plus III’s Policy Illustration

As old age comes, so do the cons of it too. One of them is becoming disabled and not able to move around on your own. Manulife RetireReady Plus III pays you an additional 1x or 2x of the guaranteed monthly income every month, depending on the severity of the disability. So that you can better manage your disability without worrying about burning a hole in your wallet.

What we like about Manulife RetireReady Plus III

  • Single premium option available
  • You can choose to pay your premiums using cash or CPF SRS account
  • Income payout period can go as long as for life
  • 100% principal guaranteed upon reaching retirement age
  • No health underwriting needed
  • Option to receive a non-guaranteed bonus in a lump sum or spread it into your monthly income at retirement age
  • 1.5X of Monthly Guaranteed Income – Upon unable to perform 2 out of 6 ADLs
  • 2X of Monthly Guaranteed Income – Upon unable to perform 3 out of 6 ADLs
  • Retrenchment benefit the sum of 50% your yearly premium

What we do not like about Manulife RetireReady Plus III

  • Retirement age is fixed in blocks of 5 years starting from 55 years old. Policyholders could not choose retirement age below 55 years old, or choose to retire at a specific age.

More aboutManulife RetireReady Plus III (The complete policy review)

Best High Income Retirement Plan for Disability Payout – NTUC Income Gro Retire Ease

NTUC Income Gro Retire Ease
NTUC Income Gro Retire Ease

Gro Retire Ease by NTUC Income offers an overall high guaranteed and projected monthly income payout. Compare to its peers, Disability Care Benefit offers the best coverage for disability and multiplied income.

NTUC Income Gro Retire Ease gives you the option to choose:

  • Your preferred retirement age 
  • Your preferred amount of monthly guaranteed income
  • Your preferred number of years (10, 20 or 30 years) to receive your monthly payout
  • Your preferred premium term (10 or 15 years, or up till age 50, 55, 60, or 65)
  • Hassle-free application – No health underwriting needed

NTUC Income Gro Retire Ease Benefit Table

Unlike the definition of Total and Permanent Disability (TPD) or LOI (Letter of Indemnity), NTUC Income Disability Care Benefit is valid with any one of the following

  • Loss of use of one limb
  • Loss of speech or hearing
  • Loss of sight in one eye due to accidental injury or illness

Disability before payout starts not only waives all future premiums but provides an additional guaranteed lump sum benefit, equivalent to six times the monthly cash benefit.

Related article: 5 reasons you should invest in a retirement annuity plan

In-depth financial details for NTUC Income Gro Retire Ease

 Policy Illustration for NTUC Income Gro Retire Ease

At age 35, Ben purchases NTUC Income Gro Retire Ease to plan for his retirement. He pays a yearly premium of S$9,828 for the next 26 years.

With a total of S$255,529 paid in premiums, Ben starts receiving a total projected retirement income of S$3568.80 per month for the next 20 years.

By age 85, Ben received a total projected S$856,512 in retirement income with only S$255,529 paid in premiums, a good 335% returns on his investment.

Conclusion of NTUC Income Gro Retire Ease’s Policy Illustration

Through this illustration, we have found that NTUC Income Gro Retire Ease gives the highest guaranteed income with the lowest premiums.

This is good news for those who seek a retirement plan with a high guaranteed monthly income for the lowest cost.

What we like about NTUC Income Gro Retire Ease

  • All future premiums waived with NTUC Income Disability Care Benefit
  • 2x of guaranteed monthly income with NTUC Income Disability Care Benefit
  • An additional lump sum in the event of disability before your desired retirement payout age
  • 100% principal guaranteed upon reaching retirement age

What we do not like about NTUC Income Gro Retire Ease

  • Higher annual premium is required for the same $2000 guaranteed income compared to MyRetirement Choice II

More about: NTUC Income Gro Retire Ease (The complete policy review)

Additional product details: NTUC Income Gro Retire Ease marketing brochure

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Best High Income Retirement Plan for Projected Payout – Aviva MyRetirement Choice II

Aviva MyRetirementChoice II
Aviva MyRetirementChoice II

Aviva MyRetirement Choice II is the newest retirement plan launched by Aviva and remains one of the most competitive annuities in Singapore. This is a regular premium retirement plan which you can customise based on your desired lifestyle and finances.

MyRetirement Choice II will be 100% principal guaranteed upon retirement age and comes with Care Income Benefits which is equivalent to your monthly guaranteed income payable should you not be able to perform 3 out of 6 Activities of Daily Living (ADLs).

Aviva MyRetirementChoice II Benefit Table

Aviva MyRetirement Choice II is a part of Aviva Retirement Suite of products

Aviva MyRetirement Choice II gives you the option to choose:

  • Your preferred retirement age
  • Your preferred amount of monthly guaranteed income
  • Your preferred number of years (5 to 35 years) to receive your monthly payout
  • Your preferred premium term of 5, 10, 15, 20 or 25 years
  • Hassle-free application – No health underwriting needed

In-depth financial details for MyRetirement Choice II

Policy Illustration for Aviva MyRetirementChoice II

At age 35, Carol purchases Aviva MyRetirement Choice II to plan for her retirement. She pays a yearly premium of S$18,540 for the next 20 years.

At age 66, Carol is eligible to receive a non-guaranteed bonus which she instead chooses to convert to additional monthly income.

With a total of S$370,795 paid in premiums, Carol starts receiving a total projected retirement income of S$6,031.30 per month for the next 20 years.

By age 85, Carol received a total projected S$1,447,520 in retirement income with only S$370,795 paid in premiums, a grand 390.4% returns on her investment.

Conclusion on Aviva MyRetirement Choice II’s Policy Illustration

The most flexible retirement plan in the market allowing you the flexibility to retire anytime you want. Although the premiums are a little high amongst the other retirement plans here, its non-guaranteed portion makes up for that, giving you the highest return on investment.

Related articleHow can I accumulate a million dollar (Realistically)

What we like about Aviva MyRetirement Choice II

  • Flexibility to choose your retirement age. You do not need to choose between 55, 60, 65. You are free to choose when you want to retire or even retire earlier than 55 years old
  • 100% principal guaranteed upon reaching retirement age
  • No health underwriting needed
  • Option to receive a non-guaranteed bonus in a lump sum or spread it into your monthly income at the start of your chosen retirement age
  • 2X of monthly Guaranteed Income – Upon unable to perform 3 out of 6 ADL
  • Easy Term rider – Lump sum payment in the event of Death, Terminal Illness or Total permanent disability

**Although there is no single premium option, this is the only 5-year premium term retirement plan/ annuity policy with comparable or even higher returns to a single premium policy (Verified by Benefit Illustration provide by our Financial advisors).

What we do not like about Aviva MyRetirement Choice II

  • Lack of Single Premium option choice, minimum premium payment tenure is 5 years
  • Cash option only. You are not allowed to use your funds from CPF SRS account
  • Unlike Manulife RetireReady Plus II, there is no coverage for the disability to perform 2 ADLs

More aboutAviva MyRetirementChoice II (The complete policy review)

Best High Income Retirement Plan For Lump-sum Payout – AXA Retire Treasure II

AXA Retire Treasure II

The latest addition to the best retirement plan for high income,  AXA Retire Treasure II gives you the non-guaranteed retirement income in form of a maturity benefit. If you are looking to receive a lump-sum amount upon reaching the end of your retirement plan, AXA Retire Treasure II may be the retirement plan for you.

AXA Retire Treasure II Benefit Table

AXA Retire Treasure II gives you the flexibility to choose:

  • Your preferred premium payment term (Single premium, or 5 to 30 years, 5-year intervals)
  • Your prefered payout term (Lifetime; till age 120, or 10 to 25 years, 5-year intervals)
  • Your preferred guaranteed monthly income
  • The option to add a secondary life assured (to continue receiving the benefits of the policy upon your death)
  • SRS fundable

In-dept policy illustration for AXA Retire Treasure II

 Policy Illustration for AXA Retire Treasure II

At age 35, John purchases AXA Retire Treasure II to plan for his retirement. He pays a yearly premium of S$11,725 for the next 30 years.

With a total of S$351,729 paid in premiums, John starts receiving guaranteed retirement income of S$24,003 per year for the next 20 years.

Upon reaching age 85, John’s AXA Retire Treasure II plan comes to an end, giving him a non-guaranteed maturity lump-sum bonus of S$595,120.

John received a total of S$1,075,184 in retirement income with only S$351,729 paid, a good 305% returns on his investment.

Conclusions on AXA Retire Treasure II’s Policy Illustration

At the end of the policy, AXA Retire Treasure II gives you a lump-sum bonus which you can use according to your wish and goals.

What we like about AXA Retire Treasure II

  • AXA Retire Treasure II allows you to add a secondary life assured, this means your loved one can carry on receiving retirement income after your passing. This is especially beneficial if you choose to receive lifetime payout as the policy matures on the 120th anniversary of your life
  • This retirement plan is fundable using your CPF SRS funds

What we do not like about AXA Retire Treasure II

  • AXA Retire Treasure II pays out retirement income yearly. This is a downside for those who prefer to receive their retirement income on a monthly basis

Detailed comparison for retirement plans based on features and income payout

We have compiled a detailed data based on age 35 with the intention to pay insurance premiums for 20 to 30 years. The aim here is to receive the highest initial and guaranteed income payout starting at age 66, lasting for 20 years to age 85.

At the same time, an emphasis is made on features that double the guaranteed monthly income in the event of severe disability. The rationale is not to have your income payout diluted by the cost for long-term and medical expenses during your retirement.

Note: For users on mobile devices, you may have to swipe/ scroll on the chart to view the complete data.

 
High-income payout retirement plans for: Male, Age 45, Retire at Age 65
 
Plan Details
Manulife RetireReady Plus II
(Payout for 20 years​)

Aviva MyRetirement Choice II
(Payout for 20 years​)

NTUC Income Gro Retire Ease
(Payout for 20 years​)

AXA Retire Treasure II

(Payout for 20 years​)
Annual Premium

$13,536
Pay premium for 20 years
Total Premium paid: $270,720
$18,539.75
Pay premium for 20 years
Total premium paid: $370,795
$9,828.05
Pay premium for 26 years
Total premium paid: $255,529
$11,725
Pay premium for 30 years
Total premium paid: $351,729
Yearly Income Payout
(Guaranteed/ Projected)
$24,000/ $47,942.28$24,000/ $72,375.96$24,000/ $42,825.60$24,003 (Guaranteed)
Total Guaranteed Payout
(Guaranteed only)
$480,000$480,000$480,000$480,064
Total Projected Payout
(Guaranteed and Non-Guaranteed)
$958,845$1,447,520$856,512$1,075,184
(Including projected maturity bonus of S$595,120)
Additional note:
  • Scroll/ swipe left on chart to view complete financial figures.
  • Please refer to individual insurance product review for complete infomation.
  • All Projected payout includes Guaranteed and Non-guaranteed financial returns.
  • All Non-Guaranteed payout are based on the respective insurers achieving 4.75% p.a investment returns.
  • Infomation provided are accurate at the time it was published, and Interestguru.sg is not liable should there be any adjustment by the respective insurers.
Refer to: 4 Best Retirement Plan in Singapore - Features and payout (2021 Edition)

How do you get the most out of your retirement plan?

Your retirement plans are meant to supplement your lifestyle and expenses in your golden years. Find a retirement plan that pays out according to your life objectives before looking at the financial figures.

After all, the yields and the financial payout will not make a difference if the retirement plan does not allow you to utilize it according to your retirement lifestyle.

Related article: 5 reasons to invest in a retirement annuity plan *NEW*

Whenever possible, consider the following before taking up a retirement plan:

  • Would you prefer a higher guaranteed or a higher overall non-guaranteed payout?
  • Do you need the payout to increase at a fixed rate to keep up with inflation?
  • In the event of disability or Critical Illness, do you still have to continue paying your premiums?
  • What is the overall annualised yield on the retirement plan?
  • Are you expecting a lump sum payout once you reach your retirement age?
  • How much guaranteed and non-guaranteed are you expected to receive if you have to do an early surrender of your policy during your retirement years?
  • In the event of disability during the payout period, is there any income multiplier to cover additional costs that will be incurred on your lifestyle?

Ensure that your retirement plan can address your retirement needs and concerns as much as possible. Due to the large financial commitment and long time horizon required, never compromise on what is important to you.

Drop us a message to have a retirement plan structured to your needs or just to understand more.

What are the other alternatives besides a high income retirement plan?

A retirement plan with the highest income payout allows greater financial freedom during your initial retirement years. You may also wish to explore having a separate retirement plan to provide additional financial security with some of the unique features below:

  • Additional guaranteed monthly payout, in the event of failing minimally 2 out of 6 or 3 out of 6 activities of daily living.
  • A retirement plan that only payouts monthly over the next 10/15 years from the start of your retirement, but provide a lump sum cash payout at maturity.
  • Lower monthly payout, but the plan guarantees a lifetime payout, with the option to pass on the plan to the next generation.
  • Lower initial monthly payout but payout increases yearly to keep pace with inflation.
  • Making withdrawal only as need via a lifetime whole life savings plan, while allowing un-utilised savings to generate returns in the plan.
  • Investing into a basket of unit trust funds that provides a higher non-guaranteed monthly payout.

While the income payout from the above list of plans may not be as high as a high income payout retirement plan, each of the said categories may offer unique financial benefits to you.

What are the best retirement annuity plans for you?

Wish to know more about how the above retirement plan or annuity policies fit into your financial and insurance portfolio?

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Note: All financial figures are based on close approximate and all non-guaranteed figures are based on the higher tier of 4.75% investment returns. The sample illustrations are for illustrative purposes only and is not a contract of insurance. Early surrendering or cashing out from Retirement plans or Annuity policies will certainly result in financial loss. In the event of doubt, always refer to the precise terms and conditions as specified in your policy contract. Seek the advice of a qualified financial professional or a licensed financial advisor before making any decision or financial commitment.

*Terms and conditions may apply, speak to our financial planners or drop us a message for more details.

Latest Change Log for 3 Best Retirement Plans in Singapore (Features and Income payout)

Version 1.7 – 16/04/2021

  • Updated alternatives plans and retirement options besides getting a high payout income retirement plan

Version 1.6 – 18/03/2021

  • Additional best retirement plan – AXA Retire Treasure II
  • Revamped examples of each best retirement plan

Version 1.5 – 14/10/2020

  • Alternatives to high income retirement plans

Version 1.4 – 3/8/2020

  • Minor text edits
  • Updated links to related retirement planning contents

Version 1.3 – 8/7/2020

Manulife RetireReady is replaced by Manulife RetireReady Plus II due to

  • Manulife RetireReady is no longer available
  • Manulife RetirerReady Plus guaranteed income multiplier now partially kicks in upon failing 2 of 6 ADLs.

Version 1.2 – 24/6/2020

AXA Retire Happy Plus is replaced by NTUC Income Gro Retire Ease due to:

  • A lower annual premium for NTUC Income Gro Retire Ease for the same guaranteed income
  • Additional 2x guaranteed Income for severe disability built into NTUC Income Gro Retire Ease
  • More competitive overall returns

Version 1.1 – 3/4/2020

Aviva MyRetirement Plus is replaced by Aviva MyRetirement Choice II due to:

  • A lower annual premium for Aviva MyRetirement Choice II
  • Higher initial income payout for Aviva MyRetirement Choice II
  • Additional 2x guaranteed Income for severe disability built into NTUC Income Gro Retire Ease
  • However, Aviva MyRetirement Plus STILL OFFERS a higher overall payout at the cost of a lower initial payout

 

 

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