Any single premium retirement annuities with good guarantee returns? - Seedly
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Asked on 26 Sep 2020

Any single premium retirement annuities with good guarantee returns?

Looking for annuity plans for preferably single premium cash top up that provides reasonable rate of return. Able to hold all the way until retirement age.


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Hi Anon, here's a quick snapshot comparison for single premium lifetime annuities that I carry.

I personally prefer Taiping's policy due to highest potential payout and good surrender value growth as well.

Question Poster

27 Sep 2020

Thanks alot Hariz. It's a good comparison chart. I understand Taiping to be quite new on the market so I am not too sure of its track record. Are there any difference if I am looking at single premium of <100k? How come all the guaranteed amount are less than the principal Amt put in? Isn't that risky? Or that it typical of annuity plans. Sorry if this qn is too noob. Also noticed that the cash values are in -ve percentage except for aviva plan. Is that also normal or shld I just focus on settling with higher IRR?
Hariz Arthur Maloy
Hariz Arthur Maloy

27 Sep 2020

Hi Anon, almost all annuities will have a capital guaranteed break even year. Some earlier like Aviva and China Life, and some later like Manulife. Because they're paying out income in the near term, the surrender value for these first few years will be low. Another thing to note is that all annuities above will also pay higher than your capital upon death, so that's always intact. For below 100k there are some but not many. You can also look to pay over 5 years as well if you want, that expands your options. If you're buying an annuity there cannot be a consideration to surrender them early. They're made to provide income and protect against running out of money due to longevity. So you should focus on the payout rate most importantly. Regarding Taiping, their par products are new but the insurer has been here since 1938.
Thank You!
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