When it comes to annuity plans, I personally divide the types of annuity you can buy in Singapore to the following 7 types:
- Annuity with limited period payout – Income payout for a fixed period of years.
- Annuity with lifetime payout – Income payout for life with no fixed maturity date.
- Annuity with Joint-life payout (limited period or lifetime) – Income payout for life with no fixed maturity date covering 2 life insured
- Annuity with Income Inflation payout – Increasing income during payout period
- Annuity with Long Term Care Protection – Income payout increases upon disability
- Annuity with Capital Protection upon Death (limited period or lifetime) – Insurance coverage upon death
- Annuity with Multi-Generation Income Payout – Annuity Income can be transferred to children
Due to the different features available, not all annuity plans are able to provide against longevity risk in retirement. In order for an annuity plan to provide against the risk of living too long, it should be able to provide a lifetime income, with no maturity date. However, there are also annuity plans that provide for an income up to age 100 and upon reaching age 100, refunds the full premium invested into the plan. I regard such plans as being able to provide for longevity risk as well.
This guide consists of a table that list down 10 such lifetime income annuity plans in Singapore, with the additional features of these plans indicated to help you select a suitable plan for your retirement.
I hope that it has saved you much time and potential grief in going through the seemingly myriad annuity options available.
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