Hi anon,
We need to put it in perspective here. Good compared to what?
Definitely, you cannot expect the returns to be on the level of stocks or UTs or ETF since it is a totally different asset class. However, those asset classes don't have guarantees either. So we'll have to compare to similar asset classes, in this case, other retirement income plans. I won't be elaborating about how retirement income plans work to keep my answer concise.
As a retirement income plan, I would generally say that the guaranteed returns on NTUC Gro Retire Ease is probably amongst the best out there. But this is a very sweeping statement and really needs to take into account your age, payout duration, premium duration, etc as well as how it all fits into your retirement planning. There used to be better plans (in terms of guaranteed returns), but with falling interest rates, some of those plans are now off market.
If you are looking for additional guaranteed income, you can definitely consider this plan (but you might want to speak with an advisor first to find out about all your options). However, you should consider ensuring that your beef up your CPF SA first (or at least, know that you will be on track to meet FRS at a minimum before 55) before considering such plans.
Hi anon,
We need to put it in perspective here. Good compared to what?
Definitely, you cannot expect the returns to be on the level of stocks or UTs or ETF since it is a totally different asset class. However, those asset classes don't have guarantees either. So we'll have to compare to similar asset classes, in this case, other retirement income plans. I won't be elaborating about how retirement income plans work to keep my answer concise.
As a retirement income plan, I would generally say that the guaranteed returns on NTUC Gro Retire Ease is probably amongst the best out there. But this is a very sweeping statement and really needs to take into account your age, payout duration, premium duration, etc as well as how it all fits into your retirement planning. There used to be better plans (in terms of guaranteed returns), but with falling interest rates, some of those plans are now off market.
If you are looking for additional guaranteed income, you can definitely consider this plan (but you might want to speak with an advisor first to find out about all your options). However, you should consider ensuring that your beef up your CPF SA first (or at least, know that you will be on track to meet FRS at a minimum before 55) before considering such plans.