Hi, was recommended Retire Ready from DBS by my banker and would like find out if it is suitable for me and my family. The guaranteed portion of the plan is $1 000 monthly from 60-80 years old. Non-guaranteed portion is $33 000 once at 60 years old and $428 monthly from 60-80 years old (additional over the guaranteed $1 000). Total premiums over 10 years is $118 500.
What I like about the plan is that the IRR (ed. Internal Rate of Return) is 4.3% in the best case scenario and 2.5% in the worst case scenario. Also, the non-guaranteed bonus of $428 is released monthly rather than lump sum.
I'm 37, married with 2 children. Have 7K yearly in SA that should hit projected 20XX FRS easily. Any advice would be greatly appreciated.
I am very familiar with Manulife's Retire Ready. However, you forgot to leave behind the question! So the most important thing when making any purchases is to ask the right question.
If you are asking whether is the return of the product worth the money, it is targeted at those who are conservative in their risk profile.
Due to the large premium required, it is not suitable for those with irregular income such as self-employed person or whose job's stability is questionable. Premature termination of premium would result in large financial loss.
I also find it strange that the payout age quoted to you is for 60 to 80 since you are almost certain to live beyond 80.
I am not sure why you mentioned CPF Special Account since it cannot be compared with Manulife Retire Ready as both are entirely different.
I suggest you find someone who is able to do a proper financial plan for you. Normally after a proper financial plan, the suitability of the products recommended will be obvious.