Is it a better for us to get an endowment that provides a lump sum maturity or a retirement plan that provides stream of income for a number of years? Which would be more effective in terms of return?

There is no real need to choose. The plans in Singapore now come with both lump sum and stream of income benefits options that can be executed after 10-20 years of the policy term.

Hi anon,

In truth either way works. If you want a controlled stream of income, a retirement plan will provide you with just that. Due to the longer duration of retirement plans compared to endowments, the guaranteed yield on a retirement plan is generally better than an endowment that matures in a lump sum. Retirement plans are generally better used to supplement CPF Life's payouts. However, if you were planning to start retirement with a bang, like go on a round the world trip, then a lump sum maturity amount might be better.

You can probably hedge your bet and get both if you are not sure of what you need. If you are not certain when you want the lump sum maturity, then you can consider a lifetime savings plan whereby you have flexibility to withdraw part or all of the accumulated money, but if not, the amount inside will keep growing over time.