Last Updated on by Tree of Wealth
The Supplementary Retirement Scheme is a great plan for those that wish to save for retirement above their CPF savings. The SRS monies can be invested in SRS-approved installations such as EFTs, annuities and insurance, unit trusts and shares. These SRS-approved retirement plans allow you to save and later generate a stable and long-term financial payout upon retirement.
Click here to know more about the SRS – SRS: All you need to know about the Supplementary Retirement Scheme
The Best SRS-approved retirement annuity plans for wealth accumulation.
This section will review some of the best SRS-approved retirement annuity plan for wealth accumulation. The retirement plans that are featured here not only offer stable financial returns but also ensure a guaranteed principal upon maturity. These plans include:
-Best SRS Retirement Plan for Additional Disability income – Manulife RetireReady Plus
-Best SRS Retirement plan for Inflation-proofed Income [Lifetime] – AXA Retire Happy Plus
– Best Retirement Plan for Highest Income Payout – Aviva MyIncomePlus
The policies above are not presented in any order of preferences since they have different policy advantages and shortcomings.
Also, another plus point is that they all complement your CPF Life and CPF Retirement Sum Scheme.
How to get higher financial returns on your SRS account
Although the interest rate in your SRS account has generally been low at a rate of 0.05% per annum, it is still possible to use these funds for various SRS-approved financial instruments.
Generally, investing your SRS monies will depend on your investment risk appetite. For lower risks and stable long-term returns you ought to go for Retirement Annuity and Insurance Savings Endowment plans. For higher risks and Higher Potential Returns, EFTs/Unit Trust Funds and Stocks and shares are a great option.
Best SRS retirement plan for additional disability income- Manulife RetireReady Plus.
Upon retirement age, Manulife RetireReady Plus will be 100% principal guaranteed in addition to the Loss of Independence Benefits. The benefits will ensure that you keep getting an additional income in the event that you get some form of partial or even permanent disability.
Loss of Independence Benefits are payable on top of your monthly income. If you fail 2 of 6 activities of Daily Living [ADLs], you get 50% of monthly guaranteed income.
However, if you fail 3 out of 6 activities of daily living, you will be entitled to 100% of monthly guaranteed income.
You also have the discretion to choose how you receive the income payout from RetireReady Plus. You can choose a payment period of 5, 10, 15, 20 or even a lifetime. Since your financial needs are also likely to change, the plan allows you to adjust the income payout period as long as it is done 2 years before the payout commences.
A benefit of a shorter income payout period is a higher monthly income but longer income payout period results in a lower monthly income.
What makes Manulife RetireReady Plus an outstanding SRS retirement plan
Among all the SRS-approved retirement plans, Manulife RetireReady Plus was found to have some amazing benefits and product features: It offers additional guaranteed monthly income in the event of disability while also being flexible enough to allow you to change your income payout period.
Best SRS retirement plan for inflation-proofed income [Lifetime] – AXA Retire Happy Plus (Withdrawn)
AXA Retire Happy Plus is also a great choice due to its highly flexible savings plan and income payout options that supplement your retirement funds. As with the many income payout policies on the market, AXA Retire Happy Plus can also be used to support other specific savings goals that you have.
If you are diagnosed with total and permanent disability (TPD), there will be an additional lump sum benefit payable to help you cope with daily expenses. The plan still stays in-force.
What makes AXA Retire Happy Plus an outstanding SRS retirement planners
Of all the SRS-approved retirement plans, AXA Retirement Happy Plus was chosen for its awesome product features and benefits. These include;
It has options to have an increasing/inflation-proofed income payout.
It also allows for One time payout, that is 5 times of yearly guaranteed income, if Total and Permanent Disability occurs before retirement.
Best SRS Retirement plan for highest income payout- Aviva MyIncomePlus
Unlike the retirement plans mentioned above, Aviva MyIncomePlus offers a rather limited income payout options of only 10 or 15 years. While it has limited payout options, this allows Aviva to offer the highest rate of financial payout on an SRS retirement annuity plan.
MyIncomePlus is a great option if you are looking for the highest rate of return with a relatively short income payout period. Although not everyone will find it suitable, it certainly offers a high and stable rate of financial returns for your SRS funds.
What makes Aviva MyIncomePlus an outstanding requirement plan
Aviva has been selected as an outstanding requirement plan for its product features and benefits. These include the highest guaranteed income payout and the highest projected income payout over a 10 or 15 year period.
Which SRS retirement annuity plan should you choose?
All the retirement annuity plans reviewed here can help you meet your cash demands during retirement but the product you choose will ultimately depend on your finanial portfolio.
Highest Rate of Financial Returns
Aviva MyIncomePlus should top your list if you want a the highest rate of income payout for over fixed 10-15 years retirement payout period. This is because both the guaranteed and projected financial returns surpass all the other SRS-approved retirement plans.
However, you may run into longevity risk with no sources of income for your later years since the maximum income payout period is only 15 years.
Additional Income for Disability
Whether it is cash or SRS, Manulife RetireReady Plus is the best retirement plan if you are concerned with long-term care expenses in the case of disability. With this plan, you can get up to 2 times your guaranteed monthly income if you can’t perform at least 3 of 6 ADLs.
RetireReady Plus also offers an additional 50% of your guaranteed monthly income if you fail to perform a minimum of 2 of 6 ADLs.
Lifetime Guaranteed Increasing payout
Of all the SRS-approved retirement plans, AXA Retire Happy Plus offers the best options if you need an inflation-proofed lifetime payout. One disadvantage of this plan is that your yearly income payout will be lower than other retirement annuities if you paid the same insurance premium.
This is, however, compensated by Retire Happy Plus that gives you a lifelong payout that increases on a yearly basis.
Where can I compare the payout and benefits of retirement annuity policies?
Once you have made your financial commitment, it is too late to regret as specific product features, benefits and payouts will differ more than you think across insurance companies. This is why you need to compare product features, benefits and most importantly, the payouts.
Find out about the best retirement annuity policies!
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