Are you mentally and financially prepared to retire? If you are like most Singaporeans, chances are you will only be mentally prepared to retire. You are probably still miles away from being financially prepared to retire.
According to statistics released by SingStats, Singaporeans live till an old age of 80-85 years old on average. If you choose to retire by age 60 as stipulated by Singapore’s official retirement age, you will live in retirement for 23 years. But your CPF Life monthly payout only starts when you are age 65. There is (at least) a 5 years gap of income during your retirement that needs to be addressed, not to mention if Singaporeans can’t hit CPF’s minimum sum. This is one of the reasons why Income introduced its retirement plan RevoRetire.
NTUC Income RevoRetire is a flexible regular savings plan that is meant to help you save for your retirement so that you can receive monthly cash flows during your retirement.
With NTUC Income RevoRetire, you start with the end goal in mind. You start by thinking about the retirement lifestyle/plan that you want at your desired retirement age. You can choose to start your retirement payout at any age from 50,55, 60 or 65 or start your payout after 10 or 15 years.
For example, Mr Ong wants to receive a monthly cash payout of $1,000 at age 60. He plans to use RevoRetire as his retirement planning tool to help him supplement his retirement cash flow.
|Steps||Description||Case Study Scenario|
|Step 1: Choosing Premium Payment Term
|Mr Ong will choose the number of years he wants to pay premiums for with choices ranging from 5, 10 or up to 5 years before his desired payout age of 60 (i.e. 15 years).
|Step 2: Choosing Duration Of Monthly Payout
|Mr Ong then decides the number of years he wants to receive monthly cash payouts, which can be 10, 20 or 30 years.
|20 years starting from age 60|
|Step 3: Make Regular Contribution To Retirement
|Mr Ong will now start to make regular contribution to RevoRetire based on the premium payment that he has chosen in step 1.
|Mr Ong pays a premium of $26,102 per annum over the next 5 years.
Total premium paid: $130,512
|Step 4 (Optional): Make Changes To Duration Of Monthly Payout
|As long as Mr Ong hasn’t started his receiving his payout, RevoRetire gives him the option to change his payout duration. He can also choose not to make any change to his payout duration.
|No changes made|
|Step 5: Start Receiving Monthly Payout For Retirement
|Upon reaching his choice of retirement age, Mr Ong will start receiving monthly payouts from Income for the duration chosen in step 2.||Mr Ong will receive a monthly payout of $1,000 for 20 years, from age 60 to age 80.
There will also be a non-guaranteed cash bonus of up to $730 per month.
Unlike most retirement plans where the features are fixed and inflexible, RevoRetire was designed to let you be in control of your own retirement planning. With RevoRetire, you can easily craft your own desired retirement lifestyle with options that let you decide when you want to retire and how long you would like to receive your monthly cash benefit.
You can even make adjustment to your payout period within 10,20 or 30 years even after your RevoRetire is in force, which is the only retirement plan that lets you do that in Singapore. The only caveat is that you have to do it before your first monthly cash benefit is due.
With the flexibility, you can readjust your monthly payout depending on whether you have enough retirement savings in place. If there is a shortfall to your retirement savings, you can choose to shorten your payout duration to receive more monthly payout to cover the shortfall. If there is a surplus in your retirement savings, you can choose to lengthen your payout duration and receive monthly payout for a longer period of time (albeit smaller amount).
When you kickstart a RevoRetire plan, you will be insured by Income for death and accidental death. Besides that, you will also receive additional disability coverage under RevoRetire’s Disability Care Benefit. The Disability Care Benefit that RevoRetire offers is the most lenient disability claim in the market in the event of
If you are struck with a disability, not only will your premium liabilities be waived, you will also receive double the guaranteed monthly payout. You will also receive a lump sum benefit equivalent to 6 times the monthly cash benefit.
Source: NTUC Income RevoRetire
The aim of RevoRetire is to help Singaporeans retire with better retirement planning. Thus, Income has made it such that application for RevoRetire is guaranteed. Regardless whether you have any pre-existing conditions, you will be guaranteed acceptance for RevoRetire. There is no need for medical check-ups. You can be ready for your retirement with just a simple step.
Perhaps, the most important feature of RevoRetire is the yield that you can receive on your savings to anchor your retirement dream. Sharp-eyed readers would have realized that Mr Ong (our case study protagonist) only paid $130,512 in premiums. However, he eventually receives $240,000 payout from Income over the next 20 years. This is close to double of the $130,512 that he paid in premiums. Not to mention, there is also a non-guaranteed cash bonus that could bring his payout to $415,152.
Source: NTUC Income RevoRetire
One small step can really change your life, especially if that small step is to start a retirement savings plan. If you are looking forward to enjoying life after retirement, RevoRetire could be your best plan.
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