GREAT Retire Income 5 — A New Participating Endowment from Great Eastern Life

Overview

GREAT Retire Income 5 is a participating regular premium endowment plan from Great Eastern Life (rated AA- by Standard & Poor's) designed primarily as a retirement income vehicle. The plan allows premium payment terms of 5, 10, 15, or 20 years, with monthly retirement income commencing when the Life Assured reaches a selected retirement age (56, 61, 66, or 71 next birthday) for an income period of either 10 or 20 years. The monthly payout combines a guaranteed survival benefit with non-guaranteed cash bonuses. 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. Benefit illustration rates are 3.00% and 4.25% per annum.

How It Compares

At a common basis of age 35, male, non-smoker, with a $10,000 annual premium, GREAT Retire Income 5 offers a guaranteed surrender value at year 20 of $23,400. This is lower than China Life Prosperous Retirement's $51,244 and i-Retire (II)'s $31,050, though those plans have longer coverage terms (36–40 years versus above 40 years for GREAT Retire Income 5).

On investment performance, GREAT Retire Income 5's participating fund delivered a net return of 2.39% over 5 years and 3.68% over 10 years — notably stronger than i-Retire (II)'s -0.03% 5-year return. Its total expense ratio of 1.54% over 5 years is also more favourable than Manulife Spring (II) (2.40%), China Life Prosperous Retirement (3.31%), and i-Retire (II) (5.12%).

Projected yield to maturity for GREAT Retire Income 5 ranges from 2.12% to 3.26% per annum. At a $5,000 annual premium, illustrated surrender values at year 20 are $19,315 (projected up to $20,761), but fall sharply to $6,440 by year 30 — reflecting payouts made during the income period.

Pros

• Flexible retirement planning: Choose retirement age (56–71) and income period (10 or 20 years), with the option to change the income period post-inception
• Guaranteed income component: Monthly survival benefit is guaranteed, supplemented by non-guaranteed cash bonuses
• Protection elements: Death, TPD, and Loss of Independence Income Benefit (up to $5,000/month) provide coverage beyond pure savings
• No underwriting required: Simplifies the application process
• Competitive fund performance: 10-year net return of 3.68% outperforms peers in this comparison

Cons

• Long lock-in period: Surrender values in early years are typically low; the plan is designed for medium-to-long-term holding
• Non-guaranteed elements: Cash bonuses and projected returns depend on participating fund performance
• Lower year-20 surrender value than comparable plans in this comparison
• No SRS or CPFIS premium payment allowed, limiting tax-efficient funding options
• Distribution cost of $2,345 on a $5,000 annual premium is deducted from early cash values

Who It May Suit

GREAT Retire Income 5 may suit individuals seeking a disciplined retirement savings approach with guaranteed monthly income in retirement, combined with some protection against death, disability, and loss of independence. It may appeal to those who value flexibility in choosing retirement age and income period, and who are comfortable with the participating fund's performance track record. However, those prioritising higher guaranteed surrender values or shorter commitment periods may find other plans more appropriate. As with all endowment plans, the balance between savings and protection should be assessed against your broader financial portfolio.

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.