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