It's a new year again! How time flies. The holidays are behind us and it's back to work. This is going to be an exciting year with many changes in the financial planning industry. Just to give my readers a headsup, the Ministry of Health is set to announce changes in the Medisave and Medishield sectors. This can happen as early as in a couple of days time. Many new an innovative financial solutions will also be launched. An example is the AIA Retirement Saver plan which we will discuss shortly. Since we're on the topic of retirement, it would be appropriate in this first issue to discuss the age old (pun intended) question of where and how we can get money for this purpose.
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Is $1,000 Enough?
Many Singaporeans take for granted that their CPF would be enough for retirement. One way that CPF helps in retirement is through the CPF Life annuity scheme. A Singaporean Male born in 1962 with an Retirement Account Balance of S$139,000 will get an approximate monthly payout of S$1,000 starting at age 65 if he chooses the Life Standard Plan (higher payout, lower bequest option). This payout will continue as long as he lives.
Is $1,000 per month enough? Considering that most of our CPF money would be used for housing, would we even be able to accumulate the above amount in time to join the CPF Life scheme? The situation looks even bleaker when we factor inrising inflation.
Thus it is a no-brainer that we have to have other sources of income if we are to be ready for retirement. AIA recently launched one such powerful solution.
Introducing AIA Retirement Saver
Assurance in Payouts and Application – You’ll enjoy More Rewards with Better Peace of Mind
1) There is no underwriting. Everyone can apply regardless of health
2) Capital guaranteed by age 65. Get back more money than you have saved
3) Lump sum guaranteed reward of 24 times the selected guaranteed monthly retirement income to kick-start your next chapter of life with confidence.
Better to meet Your Retirement Needs – You’ll get what You want when You want it
1) Guaranteed monthly retirement income for more certainty
2) Potential annual dividends enhance your income stream and help cushion rising inflation
3) Potential terminal dividend paid in the event of death, surrender or maturity
Choice to suit Your Needs – You’ll have Greater Flexibility
1) Choice of premium payment terms (single payment, 5 or 10 years) to suit your financial commitments.
2) Choice of income payout period (15 or 20 years) depending on how long you want your retirement income to last
3) Choice of monthly retirement income amount to maintain your desired lifestyle
4) Choice to accumulate your retirement reward and income with AIA for greater returns.
