What the difference between perpetual endowment and saving plan? Which one give better return? Which one is better for risk adverse at the age of 20, planning to contribute monthly/yearly and take out around 55 to 60?

The best answer if you area really 55 to 60 then take out?

CPF SA lo... 4% currently, renewed annually until they change the interest.

Whatever you put in, as long as you hit FRS with your employment, you can take out at 55 (after setting aside FRS).

Endowments are for flexibility after 15 to 20 years, but their returns have both gauranteed and non-gauranteed projected 4% somewhat or lesser.

Hi,

If you are now 20 years old, and are looking at a savings option to withdraw at age 55 - 60, you have a time horizon of at least 35 years.

In such a case, perpetual savings may be beneficial for you, since you will benefit from the time effects of compounding. A typical savings plan that has a limited term (eg. < 15 years) will not allow you the advantage that perpetual savings plan can have. When you save consistently beyond 15 years and more, you will likely see an exponential growth in your account.

Do a google search on examples of "power of compounding". You will be amazed at how you can use your youth and time to your advantage.

Also, note that this suggestion does not take into account of your other goals, which may happen along your life's journey.​​​