GREAT Retire Income 10 — Product Review

Overview

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

How it compares

At a common basis of age 35, male, non-smoker, with a $10,000 annual premium, GREAT Retire Income 10 offers a guaranteed surrender value at year 20 of $53,050. This compares favourably against China Life Prosperous Retirement ($51,244) and significantly outperforms i-Retire (II) from China Taiping ($31,050) on the same basis.

The plan's participating fund has delivered net investment returns of 2.39% (5-year) and 3.68% (10-year), with a total expense ratio of 1.54% over 5 years. This is notably more cost-efficient than Manulife Spring (II) at 2.40% TER, China Life Prosperous Retirement at 3.31%, and i-Retire (II) at 5.12%. The projected yield to maturity ranges from 1.85% to 3.22% p.a., based on benefit illustration rates of 3.00% and 4.25%.

For a $5,000 annual premium, the illustrated surrender value at year 10 is $30,035 (up to $30,360 projected), and at year 20 is $30,900 (up to $33,903 projected). Distribution costs amount to $4,820 on this basis.

Pros

• Competitive surrender values — year 20 guaranteed value exceeds comparable plans in the market
• Lower expense ratio — 1.54% TER (5-year) is well below peers
• Flexible income period — can change between 10 and 20 years post-inception
• No underwriting required — simplifies application
• Strong insurer backing — AA- rated, part of OCBC Group
• Additional protection — Loss of Independence Income Benefit during income period

Cons

• No SRS or CPFIS payment — cannot use tax-advantaged accounts
• Modest projected returns — 1.85%–3.22% p.a. yield to maturity may lag other investments
• Non-guaranteed element — cash bonuses depend on fund performance
• Significant distribution costs — $4,820 on a $5,000 premium basis
• Weak recent fund returns — 0.71% net return over 3 years is subdued

Who it may suit

This plan may suit individuals seeking a disciplined savings approach with regular income in retirement, who value the combination of guaranteed payouts with upside potential from the participating fund. It may appeal to those prioritising cost efficiency and insurer stability, and who want flexibility in choosing when retirement income begins. However, those seeking higher growth potential or wishing to use SRS/CPFIS funds may need to consider alternatives.

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.