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Pros and Cons of NTUC Flexiretire

NTUC FlexiRetire is offered by NTUC agents, CIMB relationship managers and Independent Financial Advisors (IFA). It is a limited payment participating endowment which provides monthly Retirement Income (both guaranteed and projected) for 10, 20 or 30 years after the end of the accumulation period. At the end of the policy term, a non-guaranteed Maturity Benefit will be paid out. It does not take into the policyholder’s medical condition upon sign up, and hence it is a guaranteed issued offer plan.

NTUC FlexiRetire has several options available for the accumulation period. The accumulation period starts from policy inception, up to age 55, 60, 65 or 70 last birthday. At the end of the accumulation period, the policy will pay out a monthly payment (guaranteed and projected) for 10, 20 or 30 years. Do note the policyholder has the option to change the payout period 30 days before the policy pays the first regular payment.

There are 3 options of payment terms:

  1. Limited payment of 5 years.
  2. Limited payment of 10 years.
  3. Limited payment up to 5 years before the end of the accumulation period.

NTUC Flexiretire

Image was taken from income.com.sg

Pros of NTUC Flexiretire

  1. It is the only retirement plan that allows policyholders to change the payout period after the inception of the policy. Hence, it provides a lot of flexibility in planning one’s retirement
  2. The monthly payout consists of a high portion of guaranteed amount for the 10 years payout option.
  3. Capital guaranteed at the selected retirement age.

Cons of NTUC Flexiretire

  1. Based on the last 10 years data that we have collected, NTUC’s participating fund has been performing close to 4.75% per annum. Hence, NTUC has a reasonable good chance to honour the 4.75% projection.
  2. It will be better if NTUC’s participating fund can perform much higher than 4.75% p.a so that it will still be able to honour the projected monthly maturity payout even if the market suffers a downturn during the payout period and upon maturity.
  3. The effective rate of return is reasonable, but there are plans with a higher effective rate of return. A possible reason for a lower rate of return is that a part of the interest is to be exchanged for the flexibility option of changing the payout period.
  4. Contact us here if you want to know the full list of cons for NTUC Flexiretire

To know if NTUC Flexiretire can honour the projected return base on historical performance

To know how NTUC Flexiretire compares with other insurers’ retirement solutions

To see how NTUC Flexiretire fits your retirement cash flow projections.

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Beside NTUC Flexiretire, you may want to read up another retirement plan that provides lifetime payout here.

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