ANNUTIES-How can we use them?

[dtane]

Hi NTL,

The replacement plan for TM Retirement Life is TM Retirement GIO, basically the difference between Retirement Life and GIO is that Retirement Life is guaranteed 5% payout based on the sum insured per annum at age 60 and GIO payout is 6% payout (2.5% Guaranteed and 3.5% Non-Guaranteed).

The surrender guaranteed value at age 60 for Retirement Life is slightly higher than GIO.

The surrender / cash value of the policy for TM Retirement GIO is capped and doesn't increase after age 60. E.g. Surrendering the policy at age 60 or at age 99, you get the same amount back.

On the other hand for TM Retirement Life which is no longer sold, surrendering the policy at age 99 vs age 60 will yield you a higher amount.

The same goes for the death benefits.

However the point of this type of policy is more for the cash flow rather than the surrender value.

TM Annuity does not keep up with inflation for their payout, NTUC Income's annuity on the other hand increases their payout every year.

What’s the best annuity right now?

After TM ends their Retirement Life, and have it replaced by something else, I think it's back to Income Annuity, not considering CPF's plan of coz.

See if I can try find out about TM new plan and see how well it compare to Income.

[NTL]

Hi NTL,

The replacement plan for TM Retirement Life is TM Retirement GIO, basically the difference between Retirement Life and GIO is that Retirement Life is guaranteed 5% payout based on the sum insured per annum at age 60 and GIO payout is 6% payout (2.5% Guaranteed and 3.5% Non-Guaranteed).

The surrender guaranteed value at age 60 for Retirement Life is slightly higher than GIO.

The surrender / cash value of the policy for TM Retirement GIO is capped and doesn't increase after age 60. E.g. Surrendering the policy at age 60 or at age 99, you get the same amount back.

On the other hand for TM Retirement Life which is no longer sold, surrendering the policy at age 99 vs age 60 will yield you a higher amount.

The same goes for the death benefits.

However the point of this type of policy is more for the cash flow rather than the surrender value.

TM Annuity does not keep up with inflation for their payout, NTUC Income's annuity on the other hand increases their payout every year.

What’s the best annuity right now?

After TM ends their Retirement Life, and have it replaced by something else, I think it's back to Income Annuity, not considering CPF's plan of coz.

See if I can try find out about TM new plan and see how well it compare to Income.

Hi dtane,

Thanks for the information. Based on it, I will still take TM Retirement Life anytime. I bought it based on the guarantees it given me. I do not care much on the non-guarantee as they are "non-guarantee". To me, it is easier to plan with the guarantee, and work out the shortfalls along the way.

Actually, I do have the intention to take up another of the same plan if my future finances allow, and if I feel that I need a greater amount of guarantees for retirement.