NTUC Income New Asian Bond Fund with monthly payout features

NTUC Income has launched a new fund, Asi­an Bond Fund that intends to dis­trib­ute monthly dividend pay­out of 4.5%-5.5% per annum.

The Asi­an Bond Fund aims to provide a medi­um to long-term rate of return by invest­ing mainly in Asi­an Fixed Income Secur­it­ies. The sub-fund is inves­ted in the Black­Rock Glob­al Funds- Asi­an Tiger Bond Fund A6 SGD Hedged Share Class (the under­ly­ing fund).

The under­ly­ing fund will invest at least 70% of its total assets in the fixed income trans­fer­able secur­it­ies of issuers dom­i­ciled in, or exer­cising the pre­dom­in­ant part of their eco­nom­ic activ­ity in, Asi­an Tiger coun­tries (i.e. South Korea, the People’s Repub­lic of China, Taiwan, Hong Kong, the Phil­ip­pines, Thai­l­and, Malay­sia, Singa­pore, Viet­nam, Cam­bod­ia, Laos, Myan­mar, Indone­sia, Macau, India and Pakistan). The under­ly­ing fund may also invest in the full spec­trum of avail­able secur­it­ies, includ­ing non-invest­ment grade. It may use fin­an­cial deriv­at­ive instru­ments for effi­cient port­fo­lio man­age­ment or to hedge mar­ket, interest rate and cur­rency risk.

The sub-fund offers a monthly pay­out fea­ture and intends to provide a monthly dis­tri­bu­tion with effect from 27 May 2016. The Man­ager intends to pay the dis­tri­bu­tion with­in 45 days from the declar­a­tion date. The declar­a­tion date is set on the 3rd last busi­ness day of every month. The declar­a­tion date is sub­ject to review and the Man­ager has the sole dis­cre­tion to determ­ine the rate and fre­quency of the dis­tri­bu­tion. Dis­tri­bu­tions are not guar­an­teed and can be made out of income, cap­it­al gains, and/or cap­it­al of the sub-fund.

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 70) 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 min­im­um single premi­um to invest is $10,000.

Fund Man­ager: NTUC Income

Sub-Invest­ment Man­ager: Black­Rock (Lux­em­bourg) S.A.

Ini­tial Sales Charge: 3% (For single premi­um and top-up)

Annu­al Man­age­ment Fee: 1% p.a.

Annu­al Policy Fee from 2nd year onwards: $50, waive if invest­ment amount is $25,000 and above.

For example, below is the hypo­thet­ic­al illus­tra­tion of how the dividend will be cal­cu­lated.

Invest­ment $100,000
Offer Price $1
Num­ber of units $100,000/$1 = 100,000
Dividend Rate $0.004053 per unit
Dividend pay­able 100,000*0.004053 = $405.30

Sub­scrip­tion Meth­od: Cash/SRS

Asi­an Bond Fund Factsheet is here at http://www.income.com.sg/fund/pdf/2016/asianbond(may).pdf

Asi­an Bond Fund Product High­light Sheet is here at http://www.income.com.sg/fund/phs/2016/asianbond(dec).pdf

1.54m Singaporeans to get GST Vouchers and other Budget Benefits

About 1.54 mil­lion Singa­por­eans will receive let­ters from Min­istry of Fin­ance inform­ing them of their eli­gib­il­ity for GST vouch­ers and oth­er budget bene­fits by 1 July 2016.

For indi­vidu­al Singa­por­ean aged 21 and above whose assess­able income for Year of Assess­ment 2015 is less than $26,000 and who does not own more than one prop­erty, you will get $500 on 1 August 2016 if the annu­al value if home is $13,000 and below; or $250 if the annu­al value of home is from $13,001 to $21,000.

For Pion­eer Singa­por­ean, they will also get up to $800 top-up per year to their medis­ave based on the cri­ter­ia below.

Pion­eer Gen­er­a­tion Medis­ave Top-up
Born in Age in 2016 Amount of Medis­ave top-up per year
1945 — 1949 67 — 71 $200
1940 — 1944 72 — 76 $400
1935 – 1939 77 — 81 $600
1934 or earli­er >= 82 $800

 

For Non-Pion­eers, they will also get up to $200 top-up per year to their medis­ave till 2018 based on the cri­ter­ia below.

5-Year Medis­ave Top-up (2014 – 2018)
Annu­al Value of Home as at 21 Dec 2015 Up to $13,000 Above $13,000 or owns more than prop­erty
Singa­pore Cit­izens born in 1959 and earli­er who are not Pion­eers $200/year $100/year
One-off addi­tion­al medis­ave top-up for those age 65 and above in 2016 and who does not own more than one prop­erty. For those age 65 to 74, to get addi­tion­al $250.

 

For those age 75 to 84, to get addi­tion­al $350.

 

For those age 85 and above, to get addi­tion­al $450.

 

For those age 65 to 74, to get addi­tion­al $150.

 

For those age 75 to 84, to get addi­tion­al $250.

 

For those age 85 and above, to get addi­tion­al $350.

 

 

For house­holds stay­ing in HDB flats, gov­ern­ment will give up to $260 deduc­tion in util­it­ies bills in equal instal­ments over 4 months in July 2016, Octo­ber 2016, Janu­ary 2017 and April 2017. Each house­hold will also get up to 3 months of S&CC rebate.

 

House­hold bene­fits for 2016
Flat Type 1 And 2-Room 3-Room 4-Room 5-Room Exec­ut­ive/Mulit-Gen­er­a­tion
GSTV – U-Save $260 $240 $220 $200 $180
S&CC rebate (months) 3 2 2 1.5 1

Ref­er­ence : https://www.gstvoucher.gov.sg

New Personal Accident insurance for riding bicycle and personal mobility device

NTUC Income has just launched a new insur­ance plan, Per­son­al Mobil­ity Guard, to cov­er acci­dent­al death or per­man­ent dis­ab­il­ity, med­ic­al expenses and per­son­al liab­il­it­ies due to acci­dents while rid­ing a bicycle or a per­son­al mobil­ity device.

The table of bene­fits are as fol­lows:

Bene­fit Sum Insured
Per­son­al acci­dent (per policy year) $200,000
Med­ic­al Expenses for injury due to an acci­dent (Per acci­dent) $2,500 (Excess : $100 per acci­dent)
Per­son­al Liab­il­ity (per policy year) $1,000,000

The yearly premi­um is $96, inclus­ive of GST. You will enjoy 30% off if you sign up before 30 June 2016.

Source : http://www.income.com.sg/insurance/home-lifestyle-insurance/personal-mobility-guard

NTUC Income #StartRetiring Consumer Promotion

NTUC Income has launched “#StartRe­tir­ing Con­sumer Pro­mo­tion” from 1 April 2016 to 31 May 2016.

Cus­tom­ers who suc­cess­fully sub­mit their Reg­u­lar Premi­um Life Policies includ­ing any applic­able rider(s) between 1 April and 31 May 2016 (inclus­ive of both dates), and their policies issued not later than 31 July 2016, will be entitled to a gift as set out in the rel­ev­ant tiers below.

Min­im­um monthly premi­um Premi­um pay­ment term of 10 years and above Premi­um pay­ment term of 5 to 9 years Premi­um pay­ment term of 3 to 4 years
$1,800 Cap­ita­Vouch­er

$1650

Cap­ita­Vouch­er

$800

Cap­ita­Vouch­er

$450

$1,200 Cap­ita­Vouch­er

$750

Cap­ita­Vouch­er

$350

PHILIPS Air Pur­i­fi­er worth $279
$500 Cap­ita­Vouch­er

$250

PHILIPS Slow Juicer worth $229 N.A.
$250 Cap­ita­Vouch­er

$50

N.A. N.A.

 

The qual­i­fy­ing policies are as fol­lows:

  1. LIMITED PAY REVOSAVE (3-PAY-10)
  2. LIMITED PAY REVOSAVE (5-PAY-10)
  3. REVOSAVE
  4. LIMITED PAY REVOSAVE
  5. CANCER PROTECT
  6. VIVOCHILD
  7. ENDOWMENT
  8. VIVOCARE 100
  9. FAMILY INSURANCE PLAN
  10. REVOSECURE
  11. VIVOLIFE 125/180/350
  12. MORTGAGE PROTECTION PLAN
  13. PROTECTION
  14. LIMITED PREMIUM PROTECTION
  15. FLEXRETIRE
  16. SENIOR PLAN
  17. DREAMSAVER
  18. SILVER PROTECT
  19. ITERM
  20. VIVOLINK
  21. VIVOCASH

Terms and Con­di­tions can be found at http://www.income.com.sg/promotions/life-insurance/start-retiring-promotion#main

New Silver Protect to cover early stage cancer, fractures, hospice care and death

NTUC Income has launched anoth­er great term insur­ance plan “Sil­ver Pro­tect” spe­cially for those from 50 years to 74 years old to cov­er the fol­low­ing:-

  • Early stage can­cers — 25% of the sum assured upon dia­gnos­is of an early stage can­cer. Sum assured will not be reduced by this pay­out.
  • Advanced stage can­cers — 100% of the sum assured upon dia­gnos­is of an advanced stage can­cer. If there was no claim made for an early stage can­cer bene­fit, addi­tion­al 25% of the sum assured will be paid. All future premi­um pay­ments will be waived.
  • Acci­dent­al frac­tures — Up to 20% of the sum assured in the event of an acci­dent­al frac­ture. The amount of bene­fit pay­able is depend­ent on the site of the frac­ture.
  • Hos­pice care in the event of ter­min­al can­cer — Up to 15% of the sum assured for hos­pice and pal­li­at­ive care in the event of ter­min­al can­cer.
  • Acci­dent­al death — 100% of the sum assured in the event of acci­dent­al death. If due to a restric­ted activ­ity, 30% of the sum assured will be paid instead.
  • Non-acci­dent­al death — $5,000 in the event of death not due to an acci­dent. If it hap­pens with­in one year from the cov­er start date, 100% of the total premi­ums paid will be refun­ded instead.

The sum assured offered are $50,000, $80,000 for $100,000 and renew­al is guar­an­teed every 10 years till age 84. NTUC Income may provide cov­er even if you have exist­ing non-can­cer related med­ic­al con­di­tions.

New Cancer Waiver Rider (Guaranteed Acceptance) from NTUC Income

NTUC Income has just launched a new Can­cer Premi­um Waiver (GIO) (WPV10), which is a non-par­ti­cip­at­ing, reg­u­lar premi­um rider that waives future premi­ums on the policy for the remain­ing term of the rider upon dia­gnos­is of the insured with any one of the major can­cers after one year from the cov­er start date and dur­ing the term of the rider.

In addi­tion, applic­a­tion for this rider is hassle-free and accept­ance is guar­an­teed. There is no need for any med­ic­al check-up*.

This rider is avail­able to spe­cified GIO plans and can be attached to both first and third-party policies at policy incep­tion.

The list of GIO plans Can­cer Premi­um Waiver (GIO) rider is attach­able to:
1.       Lim­ited Pay RevoSave (ANRP)
2.       Lim­ited Pay RevoSave 3-Pay-10 (ANRV)
3.       Lim­ited Pay RevoSave 5-Pay-10 (ANRE)
4.       FlexRe­tire (FRR)
5.       Revo­Se­c­ure (RVGG)
6.       VivoC­ash (VCGL)

* If Insured had con­sul­ted a doc­tor for, suffered symp­toms of, was invest­ig­ated for, was dia­gnosed with, or received med­ic­al treat­ment for any caner, includ­ing car­cinoma-in-situ, before the cov­er start date, no bene­fit will be paid under the Can­cer Waiver Rider, and the rider will be ter­min­ated.

2016 Kick Start Your Future with NTUC Income Promotion with $1000 cashback

From now till 31 Decem­ber 2016, the first 3,300 new applic­a­tion of Reg­u­lar Premi­um Life Policies includ­ing any applic­able rider(s) with a min­im­um annu­al premi­um of S2,000, you will get $1,000 cash­back in the form of a cheque which will be mailed to you with­in 45 days, one year after the Qual­i­fy­ing Policy is issued.

You are eli­gible to apply if you are a Singa­pore Cit­izen or Per­man­ent Res­id­ent who has gradu­ated from any of the Juni­or Col­leges or Cent­ral­ised Insti­tute Course, Inter­na­tion­al Bac­ca­laur­eate Dip­loma Pro­gramme, Singapore’s Insti­tute of Tech­nic­al Edu­ca­tion, Poly­tech­nics or loc­al or over­seas Uni­ver­sit­ies in 2012 or later. You must sub­mit evid­ence of hav­ing gradu­ated from such insti­tu­tions or pro­grammes.

Note that regard­less of the num­ber of applic­a­tions for each gradu­ate, only one policy will qual­i­fy for the reward under this Pro­mo­tion. In addi­tion, poli­cy­hold­ers who have par­ti­cip­ated and suc­cess­fully qual­i­fied for the “Kick Start Your Future With Us”

Update on tax on Supplementary Retirement Scheme withdrawal

Cur­rently, an SRS mem­ber can with­draw up to $40,000 per year from his SRS account tax-free on or after reach­ing the pre­scribed retire­ment age, assum­ing that he has no oth­er tax­able income. Over the max­im­um with­draw­al peri­od of 10 years, he can with­draw up to $400,000 tax-free.
How­ever, if an SRS mem­ber passes away before com­plet­ing his SRS with­draw­als or made a full with­draw­al on the grounds of ter­min­al ill­ness, he would not be able to enjoy the full bene­fit from spread­ing out his SRS with­draw­als over a 10-year peri­od. Hence, from year of assess­ment 2016, a tax exemp­tion of up to $400,000 would be gran­ted for SRS funds deemed with­drawn upon an SRS member’s demise or a with­drawn in full on the grounds of ter­min­al ill­ness.

Next, from July 2015, SRS mem­bers will be able to apply to their SRS oper­at­ors to with­draw an SRS invest­ment by trans­fer­ring the invest­ment out of their SRS accounts (e.g. into their per­son­al Cent­ral Depos­it­ory (CDP) account), without hav­ing to liquid­ate their SRS invest­ments. This is only applic­able for the fol­low­ing types of with­draw­als, which qual­i­fy for the 50% tax con­ces­sion:

  1. with­draw­al on or after the stat­utory retire­ment age pre­vail­ing at the time of an SRS member’s first con­tri­bu­tion (cur­rently age 62);
  2. with­draw­al on med­ic­al grounds;
  3. with­draw­al in full by a for­eign­er who has main­tained his SRS account for at least 10 years from the date of his first con­tri­bu­tion; and
  4. actu­al with­draw­al made by an SRS mem­ber or his leg­al per­son­al rep­res­ent­at­ive (if he is deceased) from his SRS account, after the SRS invest­ment that is to be with­drawn had earli­er been deemed with­drawn upon death or after the expiry of the 10-year with­draw­al peri­od.

All oth­er with­draw­als from an SRS account, includ­ing pre­ma­ture with­draw­als, must be made in cash.

Singapore inflation in 2015

Infla­tion in Singa­pore fell 0.6% year-on-year in Decem­ber, com­pared to -0.8% in Novem­ber. Core infla­tion, which excludes the cost of accom­mod­a­tion and private road trans­port, rose to 0.3% from 0.2% in Novem­ber.

Private road trans­port cost fell by 1.1% in Decem­ber, com­pared to the 1.7% decline in Novem­ber. Accom­mod­a­tion cost dropped by 3% in Decem­ber, same as the decline in Novem­ber. How­ever, over­all ser­vices infla­tion increased to 0.9% in Decem­ber, up from 0.7% in Novem­ber, due to a faster pace of increase in hol­i­day travel expenses and a smal­ler decline in tele­com­mu­nic­a­tion ser­vices fees. Mean­while, food infla­tion was down to 1.5% last month from 1.6% in Novem­ber, due to the mod­er­a­tion of increase in prices of pre­pared meals such as hawker food.

For the whole of 2015, infla­tion fell by -0.5%, down from 1% in 2014. This is the first decline since 2002. Core infla­tion eased to 0.5% in 2015, com­pared to the 1.9% in 2014.
Core Infla­tion is expec­ted to be between 0.5% and 1.5% in 2016 while over­all infla­tion is pro­jec­ted to aver­age between -0.5% and 0.5% in 2016, accord­ing to MAS and MTI.

Changes of CPF in 2016

CPF CELING
CPF con­tri­bu­tion ceil­ing will be increased from $5000 to $6000 with effect from 1 Jan 2016. This will help to boost anoth­er $170 from employ­er and $200 from employ­ee for those earn­ing more than $6000 monthly salary and below 55 years old. Though the take-home pay for these employ­ees will reduce by $200, the sav­ings for retire­ment will be boos­ted by these extra sav­ings.

CPF CONTRIBUTION RATE
The CPF con­tri­bu­tion rate for employ­ee 50 years and above will be increased from 1 Janu­ary 2016.

  • Above 50 to 55, employ­er CPF rate will be increased from 16% to 17%, while employ­ee CPF rate will be increased from 19% to 20%;
  • Above 55 to 60, employ­er CPF rate will be increased from 12% to 13%, with no change to the cur­rent employ­ee CPF rate of 13%;
  • Above 60 to 65, employ­er CPF rate will be increased from 8.5% to 9%, with no change to the cur­rent employ­ee CPF rate of 7.5%.

In addi­tion, for CPF mem­bers aged 55 and above from 1 Janu­ary 2016, the first $30,000 from the CPF accounts will earn extra 1% per annum, on top of the cur­rent 1% extra interest on the first $60,000 of their total CPF sav­ings. That is,

 

 

Total CPF bal­ance

Interest Rate
If in Special/Retirement/Medisave Accounts If in Ordin­ary Account
First $30,000 6% 4.5%
Next $30,000 5% 3.5%
Remain­ing bal­ance above $60,000 4% 2.5%

This trans­lates to extra $300 sav­ings per year for the next 10 years before CPF Life pay­out starts at 65. Assum­ing the yearly $300 interest earned goes into the Retire­ment Account which earns 4% interest, this trans­lates to $3,745 after 10 years. With high­er amount in CPF Retire­ment Account, CPF mem­bers can expect high­er pay­out from their CPF Life.

SUPPLEMENTARY RETIREMENT SCHEME
The caps on con­tri­bu­tion to the vol­un­tary retire­ment sav­ings scheme, Sup­ple­ment­ary Retire­ment Scheme (SRS) will be increased from 1 Janu­ary 2016. For Singa­por­ean and Per­man­ent Res­id­ent, the cap will be increased from $12,750 to $15,300. The cap for for­eign­er will be increased from $29,750 to $35,700. This will help to increase the per­son­al income tax sav­ings, as the amount put into SRS will enjoy tax relief. Moreover, retire­ment cash­flow will be improved when SRS money is allowed to be with­drawn without pen­alty from age 62 onwards.