GREAT Retire Income 20 — Product Review

Overview

GREAT Retire Income 20 is a participating regular premium endowment plan from Great Eastern Life that combines savings accumulation with insurance protection. The plan offers flexible 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 next birthday) for an income period of either 10 or 20 years. The monthly payout comprises a guaranteed survival benefit plus non-guaranteed cash bonuses. The plan also provides death, terminal illness, and total and permanent disability (TPD) protection, 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 20 shows a guaranteed surrender value at year 20 of $106,100, significantly higher than its peers: Etiqa's Enrich goal ($47,083), Manulife's RetireSavvy ($30,000), and AIA Smart Flexi Rewards (II) ($11,964). The plan's participating fund delivered net returns of 2.39% (5-year) and 3.68% (10-year), with a total expense ratio of 1.54% (5-year) — more efficient than Etiqa (1.93%) and Manulife (2.40%), though slightly higher than AIA (1.30%). AIA's fund outperformed on returns (2.90% 5-year, 4.70% 10-year), but its year-20 guaranteed surrender value is substantially lower. The illustrated surrender value for a $2,500 annual premium peaks at year 20 ($32,270 projected, up to $33,000), then declines by year 30 ($25,750 projected) as payouts commence. Projected yield to maturity ranges from 2.13% to 3.54% p.a.

Pros

• Strong guaranteed surrender values — highest among comparable plans at year 20
• Flexible income period — can switch between 10 and 20 years post-inception
• Monthly retirement income combining guaranteed and non-guaranteed components
• Loss of Independence Income Benefit during income period (up to $5,000/month)
• No underwriting required for entry
• Reasonable expense ratio compared to most peers

Cons

• Surrender value declines after year 20 as income payouts begin
• Distribution cost of $5,401 on a $2,500 annual premium is substantial
• Non-guaranteed bonuses mean actual returns may vary; illustrated rates (3.00%/4.25%) exceed recent fund performance (0.71% 3-year)
• No SRS or CPFIS premium payment allowed
• Projected yield to maturity is modest (2.13%–3.54% p.a.)
• Protection element is limited — primarily a savings vehicle

Who it may suit

GREAT Retire Income 20 may suit individuals seeking a disciplined savings approach with guaranteed retirement income, who prioritise capital certainty and are comfortable with moderate long-term returns. The plan's strong year-20 surrender value and flexible income period make it potentially attractive for those planning retirement around age 55–65. However, those seeking higher growth potential or who may need access to funds before retirement should consider alternatives, as early surrender values are modest relative to premiums paid.

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.