Endowment Policies

Financial Planners


Asked by Huang Yixuan

Updated 3w ago

Talked to a FA recently who said that an endowment plan is basic for saving, do you guys agree and should I take one up?


Answers (5)

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 06 Oct 2018

What is your purpose for signing into an endowment plan in the first place? Saving up for a big ticket item down the road? Retirement? Or just a form of "forced" savings?

Personally, I won't recommend getting into endowments or any retail wealth management products out there, including ILPs/unit trusts/mutual funds. They cost too much to put in and you get paltry returns in the end.

As alternatives to endowment plans, considering buying into Singapore Savings Bonds, or leaving a standing instruction to "force transfer" a sum of money each month into an account giving higher interest, such as POSB's SAYE, CIMB's FastSaver, or Citibank's Maxi Gain. You can also buy into a bond ETF through POSB's Invest Saver programme each month at minimally S$100.

Hope this helps.


Jim Ng
Jim Ng,
Level 5. Genius
Answered on 28 Oct 2018

Compare between SSB and Endowment Plans here, then think critically for yourself, before making a decision.

An article I wrote myself to educate Singaporeans about SSB vs Endowment Plans:


Kishor Bhagwat
Kishor Bhagwat,
Level 4. Prodigy
Answered on 31 Mar 2019

Stay away from the FA


Gabriel Lee
Gabriel Lee,
Level 6. Master
Updated 3w ago

You can consider investing in Singapore Savings Bond which might give better returns, also it's safe and flexible since you can withdraw anytime


Huang Yixuan
Huang Yixuan

08 Oct 2018

Isn't SSB's returns about 2.4% over 10 years? The FA said the returns for the endowment plan is about 4%.
Loh Tat Tian
Loh Tat Tian

13 Nov 2018

The 4% is non-gauranteed. Another birth right you may wish to look at is maximising your CPF-OA / SA for the 3.5%/5% interest first (for the first $60,000), since you are almost willing lock up for so long lol.
Brandan Chen
Brandan Chen, Financial Planner at Manulife Singapore
Level 5. Genius
Answered on 05 Oct 2018

As a FA myself, i try to educate my clients on what is available on the market to provide them with a better understanding of the finance/invesment world.

Before you decide to take up an endowment plan, do ask yourself some questions:

1) How long do you want to save for?

2) What is the purpose of the money? If its for retirement, CPF SA's returns are 4% guaranteed, FYI

3) How much aside do you have to commit, and are you able to service it comfortably?

4) What is your Risk Profile?

5) How does your overall portfolio look like?

Endowment Plans are still suitable for a very specific group of people, so before you enter into it, do take some time to think about it.

You may PM me at should you require more clarifications