RetireReady Plus (III) by Manulife — Product Review

Overview

RetireReady Plus (III) is a regular-premium participating endowment plan from Manulife (Singapore) designed primarily for retirement income planning. The policyholder selects a premium payment term (5, 5–20 years), a retirement age (50–70), a guaranteed monthly income (GMI) amount, and an income payout period (5 years to lifetime). The plan pays monthly retirement income starting one month after the policy anniversary following the selected retirement age, plus any non-guaranteed cash bonuses. It also provides death and terminal illness coverage, waives future premiums on total and permanent disability, and pays an additional guaranteed monthly income during the payout period if the life insured experiences a loss of independence (LOI). The insurer holds strong credit ratings (AA- from S&P and Fitch, A1 from Moody's). Benefit illustrations are based on 3.00% and 4.25% p.a. returns, with the participating fund's net investment return at 3.63% over 3 years. The total expense ratio is 2.01% (3yr), 2.40% (5yr), and 2.68% (10yr). Projected yield to maturity ranges from 1.61% to 2.86% p.a. The plan cannot be funded via SRS or CPFIS.

How It Compares

At a common basis of age 35, male, non-smoker, with a $10,000 annual premium, the following comparisons emerge (all plans are quoted by premium, so no sum assured normalisation applies):

RetireReady Plus (III) sits in the middle of the group on guaranteed 20-year surrender value, well above Gro Cash Flex Pro and Enrich goal, but far below GREAT Retire Income 20. Its 5-year total expense ratio of 2.40% is the highest among the four, which may weigh on returns over time. The plan's illustrated surrender value per $1,000 annual premium is $13,605 (guaranteed) at year 20, with a projected value up to $14,954.

Pros

• Flexible design: Choice of premium term, retirement age, GMI, and payout period (including lifetime), with the option to change the payout period before retirement.
• Retirement income focus: Monthly guaranteed income plus potential non-guaranteed cash bonuses, with an option to accumulate income at a prevailing rate (currently 3.00% p.a.).
• Protection features: Death and terminal illness coverage, premium waiver on total/permanent disability, and additional LOI income benefit (up to $2,000–$4,000/month depending on severity).
• Strong insurer ratings: AA- (S&P), A1 (Moody's), AA- (Fitch).
• No underwriting required for entry.

Cons

• High expenses: TER of 2.40% (5yr) is the highest among peers, which may reduce net returns.
• Modest projected yield: 1.61%–2.86% p.a. projected yield to maturity is not compelling versus some alternatives.
• Lower guaranteed surrender value than GREAT Retire Income 20 at the same premium.
• No SRS or CPFIS funding allowed.
• Non-guaranteed elements: Bonuses and accumulated interest rates are not guaranteed and may change.

Who It May Suit

RetireReady Plus (III) may suit individuals who value flexibility in retirement planning—particularly the ability to customise premium term, retirement age, and payout period, and to switch payout periods if needs change. It may also appeal to those who want a participating endowment with some protection (death, TI, disability premium waiver, LOI income). However, given its higher expense ratio and modest projected yields, cost-conscious savers or those prioritising maximum guaranteed surrender value may find better value in alternatives like GREAT Retire Income 20. As always, suitability depends on individual goals, time horizon, and risk tolerance.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.