What type of annuity is right for you?
There are several types of annuities, and many provide tax-deferred growth. How do you want your money to be invested? When do you need to start receiving income? Different annuities are designed to meet different needs.
Immediate annuities
Most annuities are "deferred" — you invest for a number of years and then take income later. Immediate annuities start paying within a year: You make a single, lump-sum payment, then we distribute income based on the schedule you choose (i.e., for a select period, or life).
Fixed deferred annuities
A fixed annuity is a long-term retirement investment for people who want predictability. You’ll receive a guaranteed rate of return on the premium you contribute. And, when you’re ready to retire, you can receive guaranteed income payments.
Fixed index annuities
This annuity can provide both premium protection and growth potential, allowing you to benefit when the market performs well and a level of protection when it does not. They provide a minimum guaranteed interest rate combined with potential growth tied to a specific index.
What is an annuity?
You’re saving to build a nest egg for retirement. But once you stop working, how will you get a regular income to live on? Annuities are a retirement vehicle that can help provide a steady, guaranteed stream of income in retirement. And, you can contribute to an annuity as part of your retirement strategy alongside any contributions you make to your CPF accounts or SRS accounts.
Annuities for retirement
Get a guaranteed stream of income to help pay expenses after you stop working.
Why consider an annuity
For most people, annuities are an additional way to plan for retirement, along with their CPF and SRS accounts. They can help simplify the task of turning a large retirement savings nest egg into regular income. And, by providing a lifetime guaranteed income stream, they can help ensure you don't outlive your money.
How an annuity works
An annuity is a contract with an insurance company that can guarantee income for a set period of time (e.g., 10 years) or indefinitely (i.e., the rest of your life). Immediate annuity contracts begin paying within a year of purchase; deferred annuities let you build savings while you’re working and convert it to a stream of income later on.
Where it fits in your plan
An annuity can be an important part of your financial plan, along with life insurance and other investments. No matter where you are in your retirement strategy — or how much you need to save for other life goals — we can provide guidance on saving and investing to help you retire the way you want.
Who is an annuity for?
Whether you’re about to retire or still years away, you should consider getting an annuity if you want a steady, guaranteed monthly income to live on in retirement. An annuity contract is one of the only investments available that can guarantee you'll have income for life.
Even if you’re maxing out your CPF Special Account or Retirement Account, you can save even more — with the potential for growth — by purchasing a annuity policy with fixed payment tenure to ensure your funds are well managed.
If you’re 5-10 years from retirement and want guaranteed income after a certain age, you can get an annuity that will continue to grow until you need it.
If retirement has already started — or will this year — you can use a portion of your nest egg to purchase immediate guaranteed income for life or a set period of time.
Annuities can provide three significant benefits for your retirement
Fixed income annuities turn your contributions into a steady stream of guaranteed retirement income — for your lifetime or a specific number of years.
Fixed deferred annuities provide a guaranteed rate of return, while variable annuities provide potential growth based on increases in the stock market.
If you’re ready to retire, immediate annuities can start providing income soon after your premium payment; deferred annuities give you time to save more — and get more income down the road.