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Anonymous
My dad is 62 and he has an ISP plan and a term plan which is expiring soon(able to convert/renew). However, I would like to know if there are any alternatives to accumulate his wealth at his age.?
For the conversion, agent mentioned that he can convert to WL at $2k/year. At such an age, I understand that it is rather late to plan for retirement especially in such a short time frame. However, I was wondering if he can channel this $2k/year to elsewhere for growth. Would topping up his CPF be an option? How can he use the money to plan retirement if he did not choose the conversion? What else can I do for him? Greatly appreciate your suggestions. Thank you!
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Duane Cheng
15 Aug 2020
Financial Consultant at Prudential Assurance Company Singapore
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Hi there,
Any planning you can do now is still beneficial, but you will need to address the more immediate issue of his CPF. What CPF is he at currently? BRS/FRS/ERS?
Knowing this will better understand what kind of a lifestyle your dad will be able to have, according to the CPF-life payouts. If he has not reached his FRS, that would be one of the priorities you will need to address first. Doing RSTU is still possible for him, to help reach the FRS.
Another way to accumulate wealth, would be to do a single premium annuity policy, which will payout either immediately or within the next 5 years. At this point, converting to a whole life policy, would mean having to pay premiums past his retirement age, which might be not conducive.
Hope i was able to shed some insight!