The Aviva MyRetirement Choice III has been renamed to Singlife Flexi Retirement as of 16 August 2022.
Singlife Flexi Retirement is one of the most recent retirement policies launched by Singlife. The policy lets you enjoy guaranteed income in your golden years based on your preferred retirement age.
As well, it’s one of the highest yielding investment products on the market where you can also earn non-guaranteed bonuses subsequently increasing your payout.
In addition, it offers a 100% capital guarantee when you attain your preferred retirement age. There are multiple benefits as well as add-ons to increase your coverage offered by this plan as we shall see shortly in our review.
Here’s our review of the Singlife Flexi Retirement:
Firstly, see how the Singlife Flexi Retirement compares to other retirement plans in Singapore:
Click on the image above to get it!
My Review of the Singlife Flexi Retirement
The Singlife Flexi Retirement’s blend of guaranteed income and potential for non-guaranteed bonuses, offers a compelling choice for those planning their golden years.
Let’s break down the Singlife Flexi Retirement in detail:
Features That Stand Out
- Flexible Retirement Age and Payout Options: One of the most appealing aspects of Singlife Flexi Retirement is the flexibility it offers. You can choose your retirement age, the amount of Monthly Guaranteed Income (MGI) you wish to receive, and for how long. This adaptability ensures the plan can be tailored to fit your specific retirement goals.
- Short Minimum Accumulation Period: With a minimum accumulation period of just 5 years, this policy stands out for those seeking a quicker path to start receiving benefits. This feature is particularly beneficial if you’re starting your retirement planning later in life or prefer a shorter waiting period before enjoying your retirement income.
- Extensive Disability Coverage: The policy goes beyond just providing for your retirement years, offering extensive coverage for total and permanent disability, and even partial disability with its Care Income Benefit (CIB). This comprehensive approach ensures you’re protected against unforeseen life challenges, providing peace of mind.
- 100% Capital Guarantee: Upon reaching your chosen retirement age, you’re assured of a 100% capital guarantee. This guarantee is a significant advantage, ensuring that your investment is protected and you’ll receive at least the amount you’ve put in, alongside potential bonuses.
Considerations and Drawbacks
- High Premiums: The comprehensive benefits and flexibility come at a cost, with premiums on the higher side. This might be a significant consideration for those with a tighter budget or looking for more affordable retirement planning options.
- No SRS Fund Payment Option: The inability to pay premiums with Supplementary Retirement Scheme (SRS) funds could be seen as a disadvantage, especially for individuals looking to maximize their tax-efficient retirement savings in Singapore.
Despite its many strengths, Singlife Flexi Retirement might not be the perfect fit for everyone.
It’s crucial to compare it with other available policies to find the one that best suits your needs.
For instance, you might explore alternatives like Prudential PRUActive Retirement II, Manulife RetireReady Plus (III), or AIA Retirement Saver (IV), which offer different features and benefits that might better align with your financial goals.
Given the long-term commitment and the complexity of retirement policies, I strongly recommend getting a second opinion or comparing policies thoroughly. Paying premiums for up to 25 years is a significant financial decision, and extra research can help prevent potential financial missteps.
For a comprehensive comparison, consider reading our post on the best retirement policies in Singapore.
Additionally, taking advantage of a free comparison session with one of our partnered unbiased financial advisors can provide clarity and ensure you’re making the best decision for your retirement.
Click here to get help comparing policies.
Let’s break down the Singlife Flexi Retirement in detail:
Criteria
The most unique thing about this retirement plan is that it allows flexibility when choosing;
- Your retirement age
- Desired payout of Monthly Guaranteed Income (MGI)
- Desired years to receive monthly payouts
- Desired premium term
Features
Premium payment options
The plan has a premium period of 5, 10, 15, 20, or 25 years. Notably, like other policies, you can pay your premiums, monthly, quarterly, biannually, or yearly.
Payout Options
Upon attaining your chosen retirement age, you will receive payouts depending on your preferred payout period which can be 5 to 35 years.
As a rule of thumb, the maximum age to receive the monthly total income is less than or equal to 99 years. Moreover, any debts that you owe to the policy will be deducted before any payouts are made.
You can also receive the payout as a single lump sum amount under the Fast Forward Options.
More on that later.
Non-guaranteed Bonus
The policy also offers non-guaranteed bonuses to policyholders which can be cashed out in the following methods:
- As a single payout depending on your preferred retirement age.
- You can also choose to have it converted to monthly payouts.
Notably, the policy offers one of the returns on investments on the market.
If at the end of your accumulation period you don’t want to receive the payouts, you can reinvest the amounts to earn higher returns in the future.
Protection
The Singlife Flexi Retirement will provide you with guaranteed and non-guaranteed income streams in your retirement years.
Other than that, there are multiple benefits including coverage against life uncertainties such as loss of independence.
Death or Terminal Illness Benefit
If death occurs during the accumulation or payout period the family of the assured receives a lump sum payment.
The same applies if you are diagnosed with a terminal illness as specified by the policy. In both instances, the policy automatically terminates upon claim settlement.
Total and Permanent Disability
Under this benefit, you will receive premium waivers if you suffer from total and permanent disability.
Care Income Benefit (CIB)
Care Income Benefit offers you additional financial support or payouts to help you manage partial disability.
The Care Income Benefit is available during the payout period in the following circumstance.
- It’s only available if you are unable to perform at least 2 or 3 out of 6 Activities of Daily Living (ADLs). These activities include; washing, dressing, feeding, toileting, mobility, and transferring.
- In case you are unable to perform 3 ADLs, you will be paid a care benefit of up to 100% of your preferred Guaranteed Monthly Income(GMI). On the other hand, if you are unable to perform 2 ADLs you’ll be paid 100% of the GMI. In both situations, this depends on the severity of the condition.
- The benefit is paid from the anniversary after 90 days from the time the partial disability is certified.
- Benefits end if you recover from the permanent disability.
- Also, if death occurs, the benefits automatically terminate.
Fast Forward Option (FFO)
In case of a diagnosis with a partial disability during the payout period and it’s your first Care Income Benefit claim, you can apply for FFO and receive a single CIB payment.
However, the payment is made 90 days from the time the partial disability is ascertained.
Normally, the lump sum paid is lower than the CIB. Also, the FFO is only paid once after submitting the CIB claim.
On the same note, you cannot apply for FFO if the CIB payment has commenced. What this means is that you can only exercise one benefit at a time.
Additionally, you can’t apply for CIB if you had made a claim under FFO in the case of partial disability.
CIB claims are made if you are unable to perform up to 3 ADLS activities.
Confusing? We think so too.
Here’s a table to simplify things for you.
| First CIB claim | Can apply FFO |
| CIB Payment Running | Can’t apply FFO |
| FFO for partial disability is unable to perform 3 ADLs | CIB not available |
| CIB of remaining 50% of Guaranteed Monthly Income | Still available for future claims in case of partial disability and you can’t perform 3ADLs. |
Optional Add-on Riders
One of the unique advantages of Singlife’s Flexi Retirement is the availability of Optional Add-on Riders. These can help in boosting your coverage in exceptional circumstances such as death and permanent disability.
EasyTerm
EasyTerm riders allow you to make an extra lump sum cash payment to a tune of 5 times the basic plan’s yearly premium in case of death, total or permanent disability, and terminal illness.
EasyPayer Premium Waiver
As the same suggests your future premiums are waived if death, total or permanent disability, and terminal illness occur.
In this regard, the policy continues to be in force regardless of the outcome.
Cancer Premium Waiver II
With this waiver, you will not pay any premiums after a diagnosis of Major Cancer.
Critical Illness Premium Waiver II
Under this waiver, you will not pay any premiums upon diagnosis of Critical Illness as long as it’s covered under the policy.
Payer Critical Illness Premium Waiver II
Under the waiver, the policyholder will not pay any premiums after a diagnosis of Critical Illnesses provided it is covered under the policy.
Illustrations
To help you understand how the policy works, here we have 2 examples of two individuals who chose Singlife Flexi Retirement, but have diverse backgrounds.
Example 1
Supposedly Jane is a 40-year-old female with 2 children. She chooses Singlife Flexi Retirement as a way of saving and ensuring maximum comfort during retirement.
Jane opts for annual premiums of S$12,232.70 spread across 15 years. She also opts to receive a GMI of S$1000 for ages 65 to 85.
Notes;
- The total premium paid by Jane is S$183,490.50.
- The accumulation period is 10 years
- At 65 years, that is 10 years from the final date of paying premiums, Jane receives S$56,322 which should help her kickstart her retirement.
Subsequently, Jane starts to receive a Monthly Care Income Benefit of S$1,000 and a non-guaranteed monthly cash bonus of S$730.
In total, she receives S$1,730 per month.
Unfortunately, at age 70 years, Jane suffers from a stroke which renders her incapacitated. Therefore, she can no longer perform at least 3 ADLs. In this case, she automatically qualifies for the Monthly Care Income Benefit.
If Jane opts for the FFO, she can get a single payout of S$76,656.
Notably, the single payout varies depending on the stage of diagnosis of the partial disability.
- The monthly cash bonus and lump-sum payment are investment rate of return of 4.25%p.a
- Because the bonus is non-guaranteed, the actual benefits vary depending on the participating fund’s performance.
- The accumulation period starts from when the premium payment ends to the policy anniversary date when you receive your first Monthly Total Income.
Example 2
Suppose John, a 40-year-old male chooses Singlife’s Flexi Retirement. He opts to pay premiums of S$18,579.50 p.a over a period of 10 years, retirement at 66, and payouts to last 20 years when he turns 87 years.
Further, John opts to convert the non-guaranteed bonus into monthly payouts.
Here is how the scenario plays out;
| The total premiums paid | S$185,795 |
| Projected monthly income | S$2,952.80 |
| Total projected income | S$708,672 |
| Guaranteed income(1000*12*20) | S$240,000 |
| Non-guaranteed income | $468,672 |
Notes;
The policy ends when John turns 87 years old, which is 20 years from his selected retirement age.
At 87 years, total monthly payouts $2,952.80 X 12(months) X 20(years) which is equal to S$708,672.
Out of the total projected income, S$224,000 is guaranteed monthly income whereas S$468,672 is non-guaranteed income.
Singlife Flexi Retirement Summary At a Glance
| Cash and Cash Withdrawal Benefits | |
| Cash value | Available |
| Cash withdrawal benefits: | Available |
| Health and Insurance Coverage | |
| Death | Available |
| Total Permanent Disability | Available |
| Terminal Illness | Available |
| Critical Illness: | Not available |
| Early Critical Illness: | Not available |
| Health and Insurance Coverage Multiplier | |
| Death | Not available |
| Total Permanent Disability | Not available |
| Terminal Illness | Not available |
| Critical Illness | Not available |
| Early Critical Illness: | Not available |
| Optional Add-on Riders | |
| EasyTerm | Available |
| Cancer Premium Waiver II | Available |
| Critical Illness Premium Waiver II | Available |
| EasyPayer Premium Waiver | Available |
| Payer Critical Illness Premium Waiver | Available |
| Additional Features and Benefits | Fast Forward Option(FFO)
Care Income Benefit (CIB) Payout Reinvestments Non-guaranteed Bonus |
Singlife Flexi Retirement Highlights
From our review, it’s now clear that Singlife’s Flexi Retirement is a great option if;
- You would like to receive regular income on your golden years
- Looking for an investment that can earn you guaranteed and non-guaranteed income in the form of annuities in the future.
- If you prefer saving every month
- Looking for an insurance policy without the need for medical underwriting.
- You don’t require access to your funds before retirement
- If you need a policy with the potential to generate higher returns than banks.
