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Anonymous

16 Dec 2021

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General Investing

SRS - PURCHASING ANNUITY PLANS

I've been investing my SRS using robo the past few years. Considering whether to purchase an annuity. Currently 41 so have about 20 years horizon. What should my considerations be to either just stay with my DIY methods or diversify a portion into a single premium annuity as well? Would it be better to split it to a few premiums instead to achieve a "rsp" effect?

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CH

17 Dec 2021

SRS monies must be fully withdrawn in 10 yrs after retirement. If not, IRAS will take it that the remaining are withdrawn at the end and you may end up attracting more tax. Use annuity plan if you want to prolong the withdrawal period (but the amount also subjected to tax).

there should be no difference in the benefits whether is it a lump sum annuinty or split over few years, all things being equal. difference is you manage cash flow on your side, but down side is if one year miss payment, the plan could be terminated.

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