Re-launch of Plus Rider for Enhanced IncomeShield

NTUC Income has just star­ted to offer the PLUS rider for new applic­a­tion and upgrade that is attached to the Enhanced IncomeShield. Stand­ard IncomeShield is still not entitled to pur­chase Plus Rider.
PLUS rider cov­ers the deduct­ible and 100% of the co-insurance of Enhanced IncomeShield.
Assist rider cov­ers the deduct­ible and 90% of the co-insurance of Enhanced IncomeShield. How­ever, the co-insurance pay­ment is sub­ject to a cap of $2000 for Basic Plan, $2500 for Advant­age Plan and $3000 for Pre­ferred Plan only.
For exist­ing Enhanced IncomeShield poli­cy­holder, you can apply to upgrade from Assist Rider to Plus Rider, sub­ject to under­writ­ing.
New applic­ant can now choose to apply for Assist Rider or Plus rider to attach to his/her Enhanced IncomeShield.

Yearly Premium for Assist Rider can be found here

Yearly premium for Plus Rider can be found here 

Inform­a­tion on Enhanced IncomeShield can be found here

Launch of Global Income Fund from NTUC Income

NTUC Income has just launched a new fund, Global Income Fund that intends to dis­trib­ute monthly dividend pay­out of 4–5% per annum.

The Global Income Fund aims to provide income and cap­ital growth over the medium to longer term by invest­ing primar­ily in global equit­ies and global fixed income secur­it­ies dir­ectly or indir­ectly through the use of Invest­ment Funds or fin­an­cial deriv­at­ive instru­ments (includ­ing, but not lim­ited to, futures, options and credit default swaps). The under­ly­ing Fund is act­ively man­aged between asset classes, allow­ing it to achieve the object­ive of achiev­ing yield and max­im­iz­ing total returns dur­ing all phases of the eco­nomic cycle.

The sub-fund aims to provide a sus­tain­able level of income. It invests in a broad range of assets from around the world, and seeks to identify attract­ive sources of income whilst diver­si­fy­ing risk. The sub-fund intends to achieve this object­ive by invest­ing all or sub­stan­tially all of its assets in Sch­roder Inter­na­tional Selec­tion Fund Global Multi-Asset Income which is man­aged by Sch­roder Invest­ment Man­age­ment Limited.

More import­antly, NTUC Income will guar­an­tee 105% of the invest­ment amount or cash value, whichever is higher, in the event of untimely death or Total Per­man­ent Dis­ab­il­ity (TPD) before age 65. After age 65, it is 100% of the invest­ment amount or cash value, whichever is higher, in the event of untimely death.  This is on top of the monthly with­drawal of the dividends over the years.

The Cur­rent Pro­mo­tion offers a 10% bonus on the net amount of the new dis­tri­bu­tion declared for Global Income Fund and will be given each month, up to 22 Septem­ber 2015. This bonus is only pay­able once for each dis­tri­bu­tion arising from net new invest­ments and top-ups. It is not applic­able to monthly dis­tri­bu­tion arising from switches into this fund. The declar­a­tion of the dividend rate will be announced on the fourth Tues­day of the month, start­ing from 28 April 2015. NTUC Income will pay or re-invest the dis­tri­bu­tion within 45 days from the declar­a­tion date.

The min­imum single premium to invest is $10,000.

For example, if Mr Lee invests in Global Income Fund and gets a monthly dis­tri­bu­tion of $500 per month. The 10% bonus pay­able for each dis­tri­bu­tion is $50 dur­ing this pro­mo­tion period as shown below:

Declar­a­tion Date in 2015 28 April 26 May 23 June 28 July 25 August 22 Septem­ber
Monthly Dis­tri­bu­tion $500 $500 $500 $500 $500 $500
10% Bonus $50 $50 $50 $50 $50 $50

The extra bonus pay­able based on the above example is $300.

Sub­scrip­tion Method: Cash/SRS

Global Income Fund Factsheet is here at http://www.income.com.sg/fund/pdf/2015/globalincome(jan).pdf

Global Income Fund Product High­light Sheet is here at http://www.income.com.sg/fund/phs/2014/globalincome(jun).pdf

New NTUC Income Retirement Plan – FlexRetire

About FlexRe­tire

FlexRe­tire is a reg­u­lar premium par­ti­cip­at­ing endow­ment plan. It allows you to start sav­ings reg­u­larly now for your planned retire­ment age of 55, 60, 65 or 70 Last Birth Date (LBD). Upon retire­ment, you will receive reg­u­lar retire­ment pay­out for the next 10, 20 or 30 years. You will also enjoy free pro­tec­tion of 105% premium paid-to-date plus 100% of the bonuses against death and Total Per­man­ent. Dis­ab­il­ity. FlexRe­tire is guar­an­teed accept­ance, i.e. any­one can pur­chase the plan without the needs for a med­ical check-up.

FlexRe­tire is divided into 2 phases — Accu­mu­la­tion Period and Pay­out Period.

Accu­mu­la­tion Period = Chosen Retire­ment Age (up to age 55/60/65/70 LBD) – Entry Age (LBD)

Pay­out Period = Choice of 10, 20 or 30 years

Dur­ing the Accu­mu­la­tion Period, you can choose to pay the premium in 5 years, 10 years or Accu­mu­la­tion Period minus five years. That is, if the Accu­mu­la­tion Period is 25 years, you only need to pay for 20 years and start get­ting the reg­u­lar pay­out from the 25th year onwards.

At the end of Accu­mu­la­tion Period, you can choose to

  • with­draw the full matur­ity amount;
  • with­draw par­tial matur­ity amount, rede­posit the
    remain­ing cash (at least $10,000) with Income and receive monthly pay­out for the next 10/20/30 years; or
  • save the full matur­ity amount with Income with addi­tional cash value given and receive monthly pay­out for the next 10/20/30 years.

Dur­ing the Pay­out Period when you are receiv­ing the monthly pay­out, you can choose to:

  • use the pay­out as your monthly retire­ment income; or
  • deposit the pay­out with NTUC Income at the cur­rent interest rate of 3.5% p.a.. This is a deposit
    account and you can with­draw the money anytime.

At the end of the Pay­out Period, you will receive

  • the final monthly payout;
  • Future Gift, pro­jec­ted at 24 times of the final monthly pay­out; and
  • the reg­u­lar depos­ited pay­ment accu­mu­lated with NTUC Income and accu­mu­lated interest, if any.

The min­imum entry age is 20 and last entry age is 60 LBD.

 

How FlexRe­tire Lets You Retire the Way You Want?

Sup­pose you are now 35-year-old and desire a monthly retire­ment
income of at least $1,000 for 20 years when you retire at age 65. You can start build­ing your retire­ment funds through FlexRe­tire plan as follows:

Monthly Premium Yearly Premium Total Premium Paid for 10 years Guar­an­teed Matur­ity Amount at 65 years old Bonus upon matur­ity @ 4.75% IRR* Total Matur­ity Amount at 65 years old
$1082.10 $12,485 $124,850 $124,850 $75,796 $200,646

If the full matur­ity amount is re-deposited with NTUC Income at the end of Accu­mu­la­tion Period,

New Prin­cipal Amount Pro­jec­ted Monthly Pay­ment @4.75% IRR* for 20 years Pro­jec­ted Future Gift Total Amount drawn over 20 years, includ­ing Future Gift
$454,704 $2,216 $53,184 $585,024

*IRR : Invest­ment Rate of Returns

An Illustration for FlexRetire Plan

Illus­tra­tion for FlexRe­tire Plan

Deflation again in December 2014

Infla­tion was neg­at­ive 0.2% in Decem­ber 2014, com­pared to Decem­ber 2013. This was due mainly to fluc­tu­ations in cer­ti­fic­ate of enti­tle­ment premi­ums, soft hous­ing rental mar­ket and cheaper oil.
This is the second con­sec­ut­ive month that Singa­pore encoun­ters defla­tion, with the index at –0.3% in Novem­ber 2014.

Core infla­tion, which excludes the cost of accom­mod­a­tion and private road trans­port, how­ever, remained at 1.5% in Decem­ber 2014. Food and pre­pared meals were the largest pos­it­ive con­trib­ut­ing factor to infla­tion in Decem­ber 2014.

The over­all infla­tion in 2014 is 1%, com­pared with 2.4% in 2013, the low­est since 2009. The core infla­tion in 2014 increased to 1.9% from 1.7% in 2013.

Offi­cial fore­casts for head­line infla­tion is between 0.5% to 1.5%, while the core infla­tion is between 2% to 3% in 2015.

Elderly to use more Medisave to pay for outpatient services

With effect from 1 April 2015, a patient who is aged 65 and above can use up to $200 a year from the Medis­ave sav­ings to pay for the fol­low­ing ser­vices:-
a) Out­pa­tient med­ical treat­ment received at des­ig­nated health­care insti­tu­tions, and gen­er­ally cov­ers med­ical ser­vices and drugs, tests and invest­ig­a­tions which are neces­sary for dia­gnosis or treat­ment of a med­ical con­di­tion and ordered by a doc­tor.
b) Screen­ing tests that are cur­rently under the Integ­rated Screen­ing Pro­gramme. This includes recom­men­ded screen­ings for selec­ted chronic dis­eases and can­cers.
c) To sup­ple­ment other out­pa­tient uses of Medis­ave.  This includes the new $300 limit for out­pa­tient scans that was imple­men­ted on 1 Janu­ary 2015, the exist­ing $400 Mediave400 limit[1], the vari­ous lim­its for can­cer treat­ment and dia­gnostics, and other out­pa­tient with­drawal lim­its. In addi­tion, the eld­erly can also use it to pay for the 15% co-payment when using Medis­ave for chronic dis­ease treatment.

Termed Flexi-Medisave, a patient can use up to $200 from his own Medis­ave or tap on his spouse’s Medis­ave, as long as the spouse is also aged 65 and above.

Flexi-Medisave can be used for out­pa­tient med­ical treat­ment at des­ig­nated health­care insti­tu­tions. These are:
a)    Spe­cial­ist Out­pa­tient Clin­ics (SOCs) at the pub­lic hos­pit­als and national spe­cialty centres;
b)    Poly­clin­ics; and
c)    Med­ical GP clin­ics par­ti­cip­at­ing in the Com­munity Health Assist Scheme (CHAS).

[1] Cur­rently, eld­erly patients can already use the Medisave400 limit for the fol­low­ing expenses:
a)    Out­pa­tient treat­ment of 15 approved chronic con­di­tions under the Chronic Dis­ease Man­age­ment Pro­gramme (CDMP);
b)    Screen­ing mam­mo­grams for women aged 50 and above; and
c)    Vac­cin­a­tions includ­ing Hep­at­itis B, pneumo­coc­cal and flu vaccinations.

 

Deflation in November 2014

Singa­pore has its neg­at­ive infla­tion, i.e., defla­tion, after 5 years from the last defla­tion in Decem­ber 2009 amid the global fin­an­cial crisis. The con­sumer price index was –0.3% in Novem­ber 2014 over Novem­ber 2013, mainly due to lower COE prices, fall­ing accom­mod­a­tion costs and cheaper crude oil. In fact, private road trans­port fell 7% in Novem­ber 2014 over Novem­ber 2013, while accom­mod­a­tion costs declines 1.2% amid a soften­ing rental market.

How­ever, the core infla­tion, which excludes the costs of private road trans­port and accom­mod­a­tion, was up 1.5% in Novem­ber 2014 over Novem­ber 2013. Food infla­tion was up 2.9%, due to increases in non-cooked items and pre­pared meals. This is due to the high wage costs amid the tight labour market.

Experts have fore­cast the core infla­tion in 2015 to aver­age between 2% to 2.5%, while the head­line infla­tion will be between 1% to 1.5%.

Focus Group Discussions on enhancement to CPF

CPF Advis­ory Panel has just announced a series of Focus Group Dis­cus­sions (FGD) to be con­duc­ted from mid-November 2014 to mid-January 2015. The dis­cus­sion will be on the fol­low­ing topics:-

  1. Min­imum Sum — how to adjust bey­ond 2015 for future retirees
  2. Lump sum with­draw­als at age 65 years — how much should CPF mem­bers be able to with­draw and under what conditions
  3. CPF pay­outs — how could CPF pay­outs be adjus­ted to address cost of liv­ing increases over time
  4. Altern­at­ive invest­ments and annu­it­ies — how to provide more flex­ib­il­ity for CPF mem­bers who are pre­pared to take on more risks.

You can email to cpf_panel@mom.gov.sg to con­trib­ute your ideas on the above top­ics or to sign up for the FGD.  The first 4 FGDs sched­ule to dis­cuss the first 3 top­ics are as follows:-

  •  15 Novem­ber 2014 (Sat­urday) 9.00am to 12.30pm at *SCAPE
  • 22 Novem­ber 2014 (Sat­urday) 9.00am to 12.30pm at *SCAPE
  • 9 Decem­ber 2014 (Tues­day) 6.30pm to 9.30pm at the National Lib­rary Building
  • 10 Janu­ary 2015 (Sat­urday) 9.00am to 12.30pm (venue to be in town area)

There will be more FGD ses­sions to be announced later.

For more inform­a­tion, please visit http://www.cpfpanel.sg