REVIEW – Manulife RetireReady Plus II Sets You Ready to Retire (Updated )

Manulife ReadyRetire plus
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The cost of living will always be increasing and when the day where we are considering to stop working, things will be more expensive as compared to now. With this, what can we do and equip ourselves?

That said, are you ready to retire? Let’s have a look at Manulife’s ReadyRetire Plus!

Manulife ReadyRetire Plus Product Features and Benefits at a Glance

Manulife’s offering is a flexible retirement plan that promises you a guaranteed monthly income for life among other key benefits. The Manulife RetireReady Plus will ensure that you can get a steady income even in your retirement years while giving you an allowance to tailor your retirement plan according to your needs.

Even if they change.

  • Many choices for premium term, from Single Premium, to 5, 10, 15, 20 years.
  • Choose to retire at age 50, 55, 60, 65 or 70 years old!
  • Flexible in Payout Terms of 5, 10, 15, 20 or even Lifetime payout. Best in the market.
  • Disabled benefit:
    • During premium term, future premiums will be waived off if you are unable to perform 2 out of 6 Activities of Daily Living (ADLs)
    • During monthly payout period, additional of Guaranteed 0.5 times of Monthly Income if unable to perform 2 out of 6 Activities of Daily Living (ADLs).
    • During monthly payout period, additional of Guaranteed 1 times of Monthly Income if unable to perform 3 out of 6 Activities of Daily Living (ADLs).

What We Like About Manulife ReadyRetire Plus

1. Strong Guaranteed Income

With a returns of up to 2.60% p.a for guaranteed portion, totaling 4.43% of income throughout the policy term even before your payout years.

2. Make Use of Your SRS Account – Save on Tax and Retirement

To further enhance your retirement planning, you are able to make use of your SRS funds, growing them even more for your retirement.

The Supplementary Retirement Scheme (SRS) is a savings account that can complement your CPF savings while also allowing you to enjoy tax deferment once you transfer it to your retirement plan. Manulife RetireReady Plus allows you to use funds from your as a single premium. If you are already contributing to your SRS account regularly, consider saving it into this retirement plan to further enhance your retirement earnings!

3. Flexibility to Change income pay-out period

The plan makes it convenient for your retirement by allowing you to change and make re-adjustments to your monthly cash pay-out period before you actually receive your first monthly cash benefit.

This is useful if you are not sure how long do you need the monthly pay-outs for. Be it 10, 20 or 30 years upon retirement age as where we are now, and by the time we receive the monthly pay-outs upon retirement age, a lot of things may happen and needs may be changed.

This is similar to NTUC Income’s Gro Retire Ease, the only difference is that for Manulife the request to change must be submitted 2 years before selected retirement age. Whereas for NTUC Income it is 30 days only.

What is New for RetireReady Plus II (Launched 9th April 2020)

Premium Freeze

In the event that you need to, pause your premium payment without terminating your policy and keeping it in forced for a year.

Retrenchment Payout Benefit

Receive a lump sum payout equivalent of 40% of your annual premiums in the event of Life assured’s retrenchment or being unemployed consecutively for 30 days. This plan has the best benefit for retrenchment payout.

Loss of Independence

I. 2 out of 6 ADLs

In the event if you are not able to perform 2 out of 6 Activities of Daily Living, 50% of your Guaranteed Monthly Income (GMI) up to $2, 000 per month per policy will be paid out. This is additional.

II. 3 out of 6 ADLs or Loss of Speech, Loss of Hearing and Major Head Trauma

In the event if you are not able to perform 3 out of 6 Activities of Daily Living, 100% of your Guaranteed Monthly Income (GMI) up to $4, 000 per month per policy will be paid out.

How Manulife ReadyRetire Plus Works

Manulife RetireReady Plus II
Source: Manulife

Why it is a good choice?

As highlighted above, you get a guaranteed return of up to 2.60% per year with a total income of up to 4.43% over the duration of this retirement plan. You also get an annual bonus even before you choose to retire and a cash bonus once you select your age of retirement.

With Manulife RetireReady Plus, you get to make two flexible choices. This includes the choice of a limited premium term that includes a single premium, 5, years, 10, 15 and even 20 years. You also get to choose your retirement age from 50 up to 70 years but at five year intervals. There is also flexibility in your payout term as the retirement plan allows you to choose a payout term of 5, 10, 15, 20 or even a lifetime payout.

Other essential benefits include a disability benefit that waives all future premiums in case the insured is unable to carry out a minimum of 2 out of 6 activities necessary for daily living (ADLs). This includes an additional guaranteed 0.5x Monthly Income benefit in case you lose 2/6 ADLs independence in your retirement payout period. In the event of unable to perform 3/6 ADLs, there will be an additional guaranteed 1x Monthly Income benefit.

The plan does not need any medical underwriting and you have the choice to pay via Single Premium through the Supplementary Retirement Scheme.

It would however be less suitable if:

There are a number of significant factors that may make this an unsuitable plan for you.

For example, the lifetime annuity option starts at a very low income payout with the earliest retirement age being 50 years.

Moreover, the retirement age is set at intervals of 5 years starting at 50/55/60 years (no flexibility to choose ages in between) while the payout is limited to intervals of 5 years too.

Conclusion

At the end of the day, retirement is what you need to plan for and starts today. This is because all of us only have finite and fixed limited years towards old age and retirement.

Are you considering retirement planning? Let us do the homework and help you compare across the different retirement plans in the market to save you time. Drop us an inquiry below and our professional experienced licensed FA advisor will get in touch with you shortly upon your request.

No obligations. No hidden fees and costs. Just professional advice.

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