GREAT Retire Income 15 — Product Review

Overview

GREAT Retire Income 15 is a participating regular premium endowment plan from Great Eastern Life that combines savings accumulation with insurance protection. The plan allows premium payment terms of 5, 10, 15, or 20 years, and pays monthly retirement income starting from a selected retirement age (56, 61, 66, or 71) for an income period of either 10 or 20 years. The monthly payout consists of a guaranteed survival benefit plus non-guaranteed cash bonuses, giving policyholders exposure to the participating fund's performance. The plan also provides death, terminal illness, and total and permanent disability (TPD) protection, plus a Loss of Independence Income Benefit during the income period for those unable to perform activities of daily living.

How It Compares

Based on a common basis of age 35, male, non-smoker, with a $10,000 annual premium, GREAT Retire Income 15 shows a guaranteed surrender value at year 20 of $79,570. This is significantly higher than its peers: AIA Smart Flexi Rewards (II) offers $11,964, Manulife's RetireSavvy offers $30,000, and Etiqa's Enrich goal offers $47,083 at the same point.

However, the plan's participating fund performance has been modest. The net investment return over 5 years is 2.39% and 3.68% over 10 years, with a total expense ratio of 1.54% over 5 years. This compares to AIA's stronger 5-year net return of 2.90% and 10-year return of 4.70%, with a lower expense ratio of 1.30%. Etiqa's returns are weaker at 0.43% (5-year) and 2.72% (10-year), with a higher TER of 1.93%. Manulife's fund performance data was not available.

The projected yield to maturity for GREAT Retire Income 15 ranges from 2.36% to 3.58% per annum, based on benefit illustration rates of 3.00% and 4.25%.

Pros

• High guaranteed surrender value at year 20 compared to peers
• Flexible retirement age and income period selection, with option to change income period post-inception
• No underwriting required, simplifying application
• Monthly income stream combining guaranteed and non-guaranteed components
• Loss of Independence Income Benefit provides additional support during income period (up to $5,000/month)
• Strong insurer credit rating of AA- (Standard & Poor's)

Cons

• Modest fund performance — 5-year net return of 2.39% lags AIA's 2.90%
• Higher expense ratio (1.54% over 5 years) compared to AIA's 1.30%
• Non-guaranteed bonuses mean actual returns could be lower than illustrated
• No SRS or CPFIS premium payment allowed
• Illustrated surrender value at year 30 ($23,175 guaranteed) is lower than year 20 ($27,352), reflecting the impact of income payouts during retirement years
• Distribution cost of $3,693 on a $2,500 annual premium is relatively high

Who It May Suit

GREAT Retire Income 15 may suit individuals prioritising a guaranteed retirement income stream with meaningful protection features, who value the flexibility to adjust their income period and are comfortable with the insurer's strong credit standing. The plan's higher guaranteed surrender value compared to peers may appeal to those seeking capital preservation alongside income generation. However, those seeking higher potential returns from their participating fund may prefer alternatives with stronger historical performance, such as AIA Smart Flexi Rewards (II), accepting potentially lower guaranteed values. The plan is less suitable for those wanting to use SRS or CPFIS funds for premiums.

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.