RetireReady Plus (III) – Single Premium: A Retirement Income Endowment from Manulife

Overview

RetireReady Plus (III) – Single Premium is a participating endowment plan from Manulife (Singapore) that focuses on generating retirement income. You choose a single premium outlay (quotes in the data range from $20,000 to $50,000 annually, with an average of $40,596 across 1,108 quotes), select a retirement age (50, 55, 60, 65, or 70), and pick an income payout period of 10, 15, 20 years, or lifetime. The plan pays a guaranteed monthly income plus non-guaranteed cash bonuses, and includes death, terminal illness, loss of independence (LOI), and retrenchment benefits. It is quoted by premium — you decide the outlay and the payout follows — so there is no sum assured to normalise against. Manulife holds strong credit ratings (AA- from S&P and Fitch, A1 from Moody's). Benefit illustrations assume 3.00% and 4.25% p.a. returns, with a projected yield to maturity of 2.32%–3.57% p.a.

How It Compares

Measured at a common basis (age 35, male, non-smoker, $50,000 single premium), the table below shows how RetireReady Plus (III) stacks up against three similar single-premium retirement endowments:

The Manulife plan's guaranteed surrender value at year 20 ($49,055) is slightly below AIA's ($51,948), and its total expense ratio (2.40% over 5 years) is higher than AIA's (1.30%) and Great Eastern's (1.62%), though lower than Singlife's (2.59%). Manulife's par-fund net investment return is 3.63% over 3 years (longer-term figures not available), and its expense ratio rises to 2.68% over 10 years. At a $30,000 premium, the illustrated surrender value at year 10 is $21,321 (projected up to $21,983) and at year 20 is $29,820 (projected up to $32,334). Distribution costs at that premium level are $3,423.

Pros

• Flexible retirement design — choose retirement age, guaranteed monthly income, and payout period (10/15/20 years or lifetime), with the option to change the payout period before retirement.
• Additional income for loss of independence — up to 50% or 100% of GMI (capped at $2,000/$4,000 per month) during the payout period.
• Retrenchment protection — 12.5% of single premium paid as a lump sum if retrenched in the first 5 policy years (or up to age 65).
• SRS-eligible — can be funded via Supplementary Retirement Scheme contributions.
• No underwriting required — simplifies application.

Cons

• Projected yields are modest — 2.32%–3.57% p.a. to maturity, with a significant non-guaranteed component.
• Higher expenses than key peers — TER of 2.40% (5y) and 2.68% (10y) exceeds AIA and Great Eastern.
• Lower guaranteed surrender value than AIA at year 20 ($49,055 vs $51,948 on the same $50,000 premium basis).
• No CPFIS funding — cannot be paid via CPF Investment Scheme monies.
• Surrender values in early years are low — at $30,000 premium, year-10 guaranteed surrender value is only $21,321, well below premiums paid.

Who It May Suit

This plan may suit someone prioritising a structured retirement income with flexibility in timing and payout, who values the LOI and retrenchment protections, and who can commit a single premium for the long term. The modest projected yields and higher expense ratio mean it may be less attractive to those seeking maximum investment growth; such investors might compare against AIA Retirement Saver (IV) or GREAT Prime Rewards III, which show stronger historical net returns. As with all participating plans, the non-guaranteed bonuses depend on the insurer's par-fund performance.

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.