Best Retirement Annuity Plans in Singapore

Retirement is one of life’s biggest milestones, yet so many people underestimate the importance of securing a reliable income stream for their golden years. With Singapore’s rising cost of living, relying solely on CPF might not be enough. That’s where retirement annuity plans step in—offering a steady payout to ensure you can enjoy your later years without financial stress. 

Understanding how these plans work, what features to look for, and which options suit your goals can make all the difference. Here’s everything you need to know to secure financial stability and enjoy a worry-free retirement in Singapore.

So what is a retirement annuity plan?

A retirement annuity plan is a financial product designed to provide individuals with a steady income stream during their retirement years. In Singapore, these plans play a crucial role in retirement planning by ensuring that retirees have a consistent source of funds to support their living expenses after they stop working.

How do retirement annuity plans work?

Individuals contribute to a retirement annuity plan either through regular monthly premiums or a single lump-sum payment over a specified period. These contributions accumulate over time, often earning interest or investment returns, depending on the plan's structure. Upon reaching the designated retirement age, the plan disburses payouts to the individual. These payouts can be structured in various ways:

• Lifetime Payouts: The retiree receives monthly payments for the remainder of their life, providing financial security throughout their retirement years.
• Fixed-Term Payouts: Payments are made for a predetermined number of years, offering income over a specific period during retirement.

Example: CPF LIFE

In Singapore, the Central Provident Fund (CPF) offers an annuity scheme known as CPF LIFE (Lifelong Income For the Elderly). CPF LIFE provides Singaporeans and Permanent Residents with a lifelong monthly payout starting from their payout eligibility age, ensuring that they do not outlive their retirement savings. Members contribute to their CPF accounts during their working years, and these savings are used to fund the CPF LIFE payouts during retirement.

Benefits of retirement annuity plans

• Financial Security: Provides a predictable and stable income during retirement, reducing the risk of outliving one's savings.
• Customization: Many plans offer flexibility in premium payment terms and payout options to suit individual needs and retirement goals.
• Supplementary Income: Serves as an additional income source alongside other retirement savings or pensions, enhancing overall financial stability.

When considering a retirement annuity plan, it's essential to assess your financial goals, retirement needs, and risk tolerance. Consulting with a financial advisor can help you choose a plan that aligns with your long-term objectives and provides peace of mind during your retirement years.

Top retirement annuity plans in Singapore for 2025

In Singapore, there are various annuity plans designed to provide a steady stream of income during retirement. While all annuity plans include a lifetime payout and death benefit, other features—such as payout structure, premium options, and additional benefits—vary between plans. Understanding these options can help you make informed decisions for your financial future. Here's an overview of some notable options:

Detailed overview of individual plans:

1. Singlife's Flexi Retirement II 

Singlife’s Flexi Retirement II offers flexible payouts of up to age 120, with guaranteed income and potential bonuses. Policyholders can choose single or flexible premium payments, with a premium waiver for disability for added security.

2. Income's Gro Retire Flex 

Income Gro Retire Flex provides customisable payouts of up to age 100, ensuring financial security in retirement. Policyholders can choose between single or regular premium payments and enjoy guaranteed monthly income with potential bonuses. The plan also includes a disability care benefit for added protection.

3. Manulife's RetireReady Plus III 

Manulife RetireReady Plus III is a lifetime annuity plan offering guaranteed monthly payouts with potential bonuses. Policyholders can choose between single or regular premium payments and enjoy enhanced benefits, including higher payouts for certain medical conditions. The plan also includes flexible payout options tailored to individual retirement goals.

4. Etiqa's Enrich Retirement 

Etiqa Enrich Retirement provides a customisable payout duration with guaranteed income and potential annual bonuses. Policyholders can make regular premium payments and enjoy added protection with a $10,000 payout for specific medical conditions, including dementia.

5. Singlife's Flexi Life Income II 

Singlife Flexi Life Income II is a whole life annuity plan that provides lifetime passive income through annual payouts and potential cash bonuses. Policyholders can start receiving payouts at any time, with guaranteed capital protection and financial security for loved ones.

6. Luxe Plus Solitaire II 

Luxe Plus Solitaire II is a high-net-worth retirement solution offering lifetime income through guaranteed payouts and potential bonuses. Designed for wealth preservation, it provides long-term financial security with a single premium payment.

7. China Taiping i-Retire (II)

China Taiping i-Retire (II) is a customisable retirement annuity plan that provides a guaranteed stream of monthly income. Policyholders can choose their preferred payout duration and benefit from additional Loss of Independence (LOI) coverage, ensuring financial security in case of disability.

8. Manulife's Signature Income (III)

Manulife Signature Income III is a wealth accumulation and retirement income plan that offers lifetime guaranteed payouts with potential bonuses. Designed for individuals seeking long-term financial security, it allows policyholders to receive a steady income stream while preserving their wealth.

9. AIA's Platinum Gift For Life 

AIA Platinum Gift For Life is a legacy-focused annuity plan offering lifetime guaranteed payouts with potential bonuses. Designed to help policyholders pass on wealth across generations, it provides stable retirement income along with a death benefit for beneficiaries.

10. China Life's Lifetime Income Plan 

China Life Lifetime Income Plan provides guaranteed lifetime payouts with flexible premium options, allowing policyholders to secure a stable retirement income. The plan also includes death benefit protection, ensuring financial security for beneficiaries.

11. Income Wealth Plus Solitaire

Income Wealth Plus Solitaire is a high-net-worth retirement solution that provides lifetime guaranteed payouts with potential bonuses. Designed for wealth preservation, this plan offers stable passive income while allowing policyholders to accumulate their payouts for greater flexibility.

12. China Taiping Infinite Elite Harvest USD

China Taiping Infinite Elite Harvest USD is a USD-denominated annuity plan designed for high-net-worth individuals seeking lifetime income with potential bonuses. This plan offers guaranteed monthly cashbacks while allowing for long-term wealth accumulation.

13. FWD Life Income Plus

FWD Life Income Plus is a lifetime annuity plan that provides guaranteed annual payouts with potential bonuses. It is designed for individuals looking for a stable income stream while offering financial protection with a death benefit for beneficiaries.

14. Income Gro Annuity Pro

Income Gro Annuity Pro is a single premium annuity plan that provides guaranteed lifetime payouts with potential bonuses. It ensures immediate regular income while offering flexibility in payout options such as monthly, quarterly, half-yearly, or yearly distributions.

15. AIA Retirement Saver (IV)

AIA Retirement Saver (IV) is a fixed-term annuity plan designed for individuals looking to build retirement savings with guaranteed monthly payouts. It also provides a lump-sum maturity benefit at the end of the policy term.

16. Singlife Flexi Life Income (II)

Singlife Flexi Life Income II is a whole life annuity plan that provides lifetime passive income through annual payouts and potential cash bonuses. Policyholders can start receiving payouts at any time, with guaranteed capital protection and financial security for loved ones.

17. Great Eastern GREAT Lifetime Payout

Great Eastern GREAT Lifetime Payout provides guaranteed lifetime payouts with potential bonuses, ensuring a stable retirement income. The plan offers customisable payout options and a capital guarantee, making it a suitable choice for long-term financial security.

18. Prudential PRULifetime Income Plus

Prudential PRULifetime Income Plus is a lifetime annuity plan that provides guaranteed income with potential bonuses. Designed for long-term financial security, it offers optional riders for enhanced protection, including coverage for Total and Permanent Disability (TPD).

What to avoid when choosing a retirement annuity plan

When choosing a retirement annuity plan, it’s crucial to be aware of certain factors that may not align with your long-term financial goals. While these plans offer valuable benefits, such as guaranteed income for life, there are common pitfalls that can lead to suboptimal decisions. By focusing on the right aspects, such as guaranteed income, avoiding non-guaranteed components, and understanding the true value of features like capital guarantees and medical underwriting, you can make a more informed choice.

1. Insurance coverage

While most annuities come with terminal illness or death benefits, these features are secondary to the primary purpose of an annuity plan: providing consistent retirement income. It’s easy to get distracted by additional insurance benefits, but these should not overshadow the plan’s ability to meet your financial needs during retirement. Focus on plans that offer robust and reliable income streams rather than ancillary insurance coverage.

2. Non-guaranteed income

Annuity plans often highlight "projected returns," which can include non-guaranteed components tied to market performance. These figures might look attractive, but they are not assured and can vary based on economic conditions. When evaluating annuity plans, prioritize guaranteed income as it provides a dependable source of funds throughout retirement. Non-guaranteed income should be seen as a bonus, not a deciding factor.

3. Capital guarantee

All annuity plans in Singapore come with a capital guarantee, meaning your principal investment is protected. While this is a reassuring feature, it is a standard across all plans and does not set one plan apart from another. Instead of focusing on capital guarantee, evaluate other factors such as payout flexibility, premium payment options, and additional benefits that align with your financial goals.

4. No medical underwriting

None of the annuity plans in Singapore require medical checks or underwriting, making this feature irrelevant in your decision-making process. It’s tempting to consider this as a unique benefit, but it is standard practice for annuities. Instead, focus on aspects like the payout duration, retirement age options, and the plan’s ability to meet your long-term income needs.

By keeping these points in mind, you can avoid common mistakes and choose an annuity plan that truly supports your retirement goals.

What to look for in an annuity plan

Arriving at the right annuity plan is crucial for ensuring a comfortable and financially secure retirement. Here are the key parameters to consider:

1. Financial security

An annuity plan should provide a predictable and stable income during retirement, helping to mitigate the risk of outliving your savings. Look for plans with strong guarantees on payouts and assess their ability to deliver consistent income regardless of market fluctuations. Financial security is the cornerstone of any good annuity plan, ensuring peace of mind during your golden years.

2. Customization

Flexibility is essential when choosing an annuity plan. Many plans allow customization of premium payment terms, retirement age, and payout duration. This adaptability ensures the plan aligns with your unique financial situation and retirement goals. For instance, some plans offer the option to adjust payouts based on your evolving needs, making them a more versatile choice for long-term planning.

3. Supplementary income

Annuities serve as an additional income source that complements other retirement savings or pensions, such as CPF or personal investments. This supplementary income can significantly enhance your financial stability, allowing you to maintain your desired lifestyle during retirement. Consider plans that integrate well with your overall financial strategy to maximize your income streams.

By focusing on these parameters, you can select an annuity plan that not only meets your immediate needs but also supports your long-term financial well-being.

Key factors to consider when choosing an annuity plan

Selecting the right retirement annuity plan is a critical decision that can significantly impact your financial security and lifestyle during retirement. By understanding and evaluating key factors, Singaporeans can make an informed choice that aligns with their unique needs and goals. 

1. Guaranteed income

The guaranteed income component is the cornerstone of any annuity plan. It represents the fixed amount you can depend on for life, regardless of market fluctuations.

A stable and predictable income ensures financial security and peace of mind during retirement. For example, a $100,000 plan with a 2.5% guaranteed return provides $2,500 annually for life. This predictable income forms the foundation of your retirement finances.

As such, it is recommended and better to focus on the guaranteed component of the returns, as non-guaranteed payouts are subject to investment performance and carry risks.

2. Premium payment structure

Understanding the premium payment structure is essential for ensuring the plan is affordable and aligns with your financial capacity. The amount you invest determines the income you’ll receive during retirement.

For instance, in a scenario to secure $1,000 per month with a 2.5% guaranteed return, you would need to invest approximately $480,000. In such cases, opting for single premium payment for a one-time lump-sum investment, staggered payments to contributions spread over several years, which offers flexibility for those with fluctuating incomes or SRS Funding, to maximize tax benefits. However, be sure to check if premiums can be paid using SRS funds first.

3. Payout start date

The flexibility of the payout start date can significantly influence your retirement planning. Having the option for early payouts provides financial freedom and allows you to access funds before the official retirement age. This will significantly help to reduce financial stress faced by retirees, particularly in case of unexpected urgent healthcare needs or other emergencies. 

Considering these key factors is crucial to selecting a retirement annuity plan that meets your needs and secures your financial future. A well-chosen plan ensures you receive a reliable and sufficient income for life, providing the stability needed to maintain your lifestyle throughout retirement. By evaluating the premium payment structure and affordability, you can select a plan that fits within your financial capacity without placing undue strain on your budget. 

Additionally, aligning the plan’s features with your retirement goals—whether you aim to retire early or follow the standard retirement timeline—ensures that your financial resources are available when you need them most. This thoughtful approach helps you achieve peace of mind and long-term financial security.

How to evaluate an annuity plan

Evaluating an annuity plan is a critical step in ensuring your retirement strategy aligns with your financial goals and lifestyle. Here’s a straightforward guide to help Singaporeans assess annuity plans effectively:

1. Compare guaranteed income rates

The guaranteed income rate is the cornerstone of any annuity plan, representing the fixed amount you’ll receive regardless of market conditions. Focus on this dependable component when comparing plans, as it ensures a steady and predictable income during retirement. For example, a plan offering a 2.5% guaranteed return on a $100,000 investment will provide $2,500 annually for life. Prioritize plans with competitive guaranteed rates to maximize your financial security.

2. Assess premium affordability

Understanding the cost of premiums is essential to avoid overextending your budget. Calculate how much you’ll need to pay to achieve your desired retirement income. For instance, if you’re targeting a $1,000 monthly payout and the plan offers a 2.5% guaranteed return, you’ll need to invest approximately $480,000. Additionally, consider whether the plan offers flexible premium payment options, such as a single lump sum or staggered payments over several years. Check if you can use your Supplementary Retirement Scheme (SRS) funds to pay premiums, which could reduce the upfront financial burden.

3. Evaluate payment flexibility

A good annuity plan should provide flexibility in how and when you make payments. Some plans allow staggered payments, making it easier to align premium contributions with your cash flow. Others offer the option to fund the plan using SRS savings, which can be particularly beneficial for tax efficiency. Opt for a plan that accommodates your financial situation and provides convenience in managing payments.

4. Align the payout start date with your retirement timeline

The payout start date is a crucial factor, as it determines when you begin receiving income. Unlike CPF LIFE, which starts payouts at age 65, many private annuity plans allow payouts to begin earlier, often at age 55 or even sooner. This flexibility can be advantageous if you plan to retire early or need supplementary income before reaching the official retirement age. Ensure the plan’s timeline aligns with your goals to avoid financial gaps during retirement.

By carefully evaluating these factors helps you choose an annuity plan that provides reliable income, fits within your budget, and aligns with your retirement aspirations. By focusing on guaranteed income, premium affordability, payment flexibility, and payout timelines, you can make an informed decision that ensures financial stability and peace of mind during your golden years.

CPF LIFE vs. Private Annuity Plans: Which should you choose for retirement in Singapore?

Retirement planning often involves deciding between CPF LIFE and private annuity plans. While CPF LIFE stands out with its risk-free returns and lifetime payouts, private annuity plans offer flexibility and additional perks.

Understanding the differences between CPF LIFE and private annuity plans is essential for making an informed decision about your retirement strategy. Both options have unique strengths and weaknesses:

Strengths and weaknesses: CPF LIFE

CPF LIFE offers a reliable retirement income, but like any financial plan, it has both strengths and limitations. Here’s a quick comparison:

Strengths and weaknesses: Private annuity plans

Private annuity plans offer flexibility and customization, making them an attractive alternative to CPF LIFE. However, they also come with limitations that retirees should be aware of. Here’s a quick comparison

Which should you choose?

• CPF LIFE: Best for individuals seeking a stable, government-backed income for life with minimal risk. It’s an excellent choice for those who plan to retire at or after age 65 and value risk-free returns.
• Private annuity plans: Suitable for those who want more flexibility, such as earlier payouts or customized features, and are willing to accept some level of risk for potentially higher returns or additional benefits.

Ultimately, the choice depends on your retirement goals, risk tolerance, and financial needs. Combining both CPF LIFE and a private annuity plan can offer a balanced approach, leveraging the strengths of each to secure a more comprehensive retirement strategy.

When to choose CPF LIFE or private annuity plans

Deciding between CPF LIFE and private annuity plans is a crucial step in planning for a secure retirement. Each option caters to different financial needs, retirement timelines, and personal preferences, making it essential to understand when one might be more suitable than the other. This section provides a clear and practical guide, complete with scenarios and options, to help Singaporean readers navigate this decision.

Whether you prioritize risk-free, government-backed lifetime payouts or value the flexibility and additional features of private plans, knowing when to adopt CPF LIFE or a private annuity plan can significantly impact your retirement strategy. By aligning your choice with your goals—such as retiring early, ensuring stable lifelong income, or maximizing financial flexibility—you can make an informed decision that suits your lifestyle and financial objectives.

Combining CPF LIFE and private annuity plans

Combining CPF LIFE with private annuity plans can enhance your retirement income by providing both the stability of government-backed payouts and the flexibility of private options. This integrated approach allows you to tailor your retirement strategy to better meet your financial goals and lifestyle preferences.

Using CPF LIFE as the foundation of your retirement income ensures you’ll have a stable, risk-free monthly payout for life. However, private annuity plans can complement CPF LIFE by:

1. Providing Early Income: Start payouts from age 55 to bridge the gap before CPF LIFE begins.
2. Enhancing Total Income: Add private annuity payouts to CPF LIFE for a higher combined retirement income.
3. Offering Flexibility: Customize payout terms and enjoy additional features like insurance or bonuses.

For example, with CPF LIFE providing $2,000/month starting at age 65, and a private annuity plan offering $1,000/month from age 55, you’ll enjoy a smooth transition to retirement with $3,000/month once both payouts overlap.

Beyond CPF LIFE and annuity plans: Diversifying your retirement income strategy

Relying solely on CPF LIFE or private annuities for retirement might not be enough to meet your goals. A balanced retirement plan blends security with growth by combining multiple income sources. Let’s explore how different options stack up—and where they fit in your overall strategy.

1. Savings Accounts

Savings accounts are ideal for maintaining emergency funds and short-term liquidity. They provide quick access to cash, which is crucial for unexpected expenses or financial emergencies. However, the returns on savings accounts are typically low and may not keep pace with inflation. It’s advisable to keep only 6–12 months’ worth of expenses in a savings account and redirect excess funds into higher-growth investment vehicles to maximize your wealth over time.

2. Property Investments

Property investments are suitable for individuals with significant upfront capital and a long-term investment horizon. They can generate rental income and offer potential capital appreciation. However, this strategy comes with challenges, including the risk of incurring debt, market dependency, and limited liquidity. Ensure that property investments do not strain your cash flow or retirement budget, and carefully evaluate the market conditions before committing.

3. Investments in Stocks and REITs

Stocks and Real Estate Investment Trusts (REITs) are ideal for individuals seeking higher growth potential through a diversified portfolio. They can provide higher returns compared to traditional savings or annuities, making them an excellent supplement to stable income sources like CPF LIFE. However, market volatility and risks require a disciplined buy-and-hold strategy to weather fluctuations and achieve long-term growth. Regular portfolio reviews and diversification across sectors can help mitigate risks.

4. Combination Strategy

A diversified retirement income strategy can provide the best of both worlds—stability and growth. Start with CPF LIFE as the foundation of your retirement plan, ensuring lifetime payouts. Complement it with private annuities to cater to early retirement needs or additional income. Diversify further by investing in stocks and REITs for higher returns, while maintaining savings accounts for emergencies. This comprehensive approach allows you to balance risk and reward, ensuring financial security throughout your retirement.

Alternative to Annuity Plans: Investing for Retirement with StashAway

While annuity plans provide a structured way to secure retirement income, they often come with high fees, long lock-in periods, and lower flexibility. Platforms like StashAway offer a more flexible alternative through its General Investing and SRS portfolios, allowing you to grow your retirement savings at your own pace without being tied to a fixed payout structure. 

Whether you're looking for long-term capital appreciation or passive income options, StashAway provides globally diversified investment strategies that adjust based on your financial goals. Plus, if you're using your Supplementary Retirement Scheme (SRS) funds, investing with StashAway allows you to maximize your tax benefits while growing your nest egg.