Life Insurance

Haven’t Started Planning for your Retirement? Here’s How HSBC Life Can Help

hsbc life retirement income

This post was written in collaboration with HSBC. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.


After decades of hard work, looking forward to a comfortable retirement is the ultimate reward.

According to HSBC’s recent Future of Retirement Study, a significant number of people are not actively setting aside money for retirement. 72% of the 1,018 working age people surveyed are concerned about running out of money, while 38% of the respondents are living on a day-to-day basis financially.

These results are worrying. However, the good news is that with adequate planning, finding a way to receive stable payouts when you stop working is within reach, and can go a long way towards helping you enjoy an active, enjoyable retirement.

 

Introducing HSBC Life Retirement Income

HSBC Life Retirement Income, a new product designed to help you achieve your retirement goals, may be just what you need in your retirement portfolio.

This plan is designed to be flexible enough to suit a wide range of budgets and retirement goals, and provides you with a steady stream of income in your retirement years.

 

Flexible and customisable

The plan is customisable according to your needs.

You can opt to receive monthly income at the ages of 55, 60 or 65 and pay a single premium or stagger your premium payments over a term of 5 or 10 years. You will then receive your preferred income payouts amount for a period of 10, 15 or 20 years, or up to age 99.

And if unexpected changes in life do happen, the plan will take that into account. It offers you the option to adjust the selected payout period anytime before the retirement age without affecting your premiums.

 

A secure way to achieve your retirement aspirations

The plan offers support in the event that you face certain roadblocks in your life, be it before or during retirement.

With increasing market uncertainty, you may worry about what will happen if you lose your job and can’t pay your premiums. Fortunately, the plan offers an unemployment support benefit that gives you the option to defer premium payments for up to 365 days, so your retirement plan doesn’t get derailed.

To further safeguard your retirement, all future premiums also get waived if your spouse or you become totally and permanently disabled, or if your spouse passes away.

 

Additional income with chronic illness and mobility care benefit

As we age, the risk of being affected by illnesses naturally increases. To help you cope, your payouts will increase in the event of certain unfortunate occurrences.

For instance, you receive an additional 100% of the guaranteed monthly payout if diagnosed with certain chronic illnesses like Parkinson’s disease or severe dementia.

You also get a single lump sum payout worth 20 times your Guaranteed Monthly Payout if you get diagnosed with osteoporosis with fractures or severe rheumatoid arthritis.

 

How does the plan work?

When signing up for the plan, you’ll be asked to select a guaranteed monthly payout amount, a premium term (the duration for which you’ll pay premiums) and an income payout period (the duration for which you will receive monthly payouts). There is also a single premium option for those who have excess cash and would like to have a disciplined payout plan to fund their retirement lifestyle.

For instance, if you’re 40 and wish to retire at 60, you might choose a guaranteed payout of $1,500, over 15 years when you retire. Before that, you commit to paying premiums for 10 years.

When you hit 60, beside receiving your guaranteed monthly payout of $1,500, you will also receive a non-guaranteed monthly cash bonus that has the potential to further boost your payout further. These amounts will be paid over a period of 15 years until you reach your desired retirement age.
*The above illustration is based on Illustrated Investment Rate of Return (IIRR) of 4.75% p.a.

Based on IIRR of 3.25% p.a., the amount of non-guaranteed monthly cash bonus will be $354, resulting to a monthly income of $1,854 and a total payout of $333,720.

 

Now, what happens if you get diagnosed with, say, Severe Dementia at the age of 65? For the remaining 10 years of your income payout period, you will receive an additional $1,500 a month on top of your existing monthly income.

If you are diagnosed with illness such as Osteoporosis with Fractures say at age 71, you will also receive a lump sum payout of $25,000 – 20 times of the Guaranteed Monthly Payout, capped at $25,000 per life.
*The above illustration is based on Illustrated Investment Rate of Return (IIRR) of 4.75% p.a.

Based on IIRR of 3.25% p.a., the amount of monthly income (after being diagnosed with Severe Dementia) will be $3,354, total payout will be $538,720.

 

Who is this good for?

Basically anyone! HSBC Life Retirement Income is ideal for working-age people who would like to enjoy a comfortable retirement, and are on the lookout for a flexible and low-risk way to grow their wealth and receive stable payouts at their desired age.

Click here to plan for a blissful retirement with HSBC Life.

 

Do you have any questions about retirement planning? Leave them in the comments!

Note: In comparison, at an illustrated Investment Rate of Return of 3.25% per annum, the monthly cash bonus, monthly income and total payout are expected to be adjusted downwards depending on the future outlook of the Participating Fund.

Please refer to the policy illustration for the relevant amounts at the illustrated Investment Rate of Return of. 3.25% per annum 4.75% per annum respectively. The two rates are used purely for illustrative purposes and do not represent upper and lower limits of the investment performance of the Participating Fund.

 

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. It is also detrimental to replace an existing life insurance policy with a new one as the new policy may cost more or have fewer benefits at the same cost.

The above contains only general information and does not have regard to the specific investment objectives, financial situation and particular needs of any specific person. It does not constitute an offer to buy or sell an insurance product or service. A copy of the Product Summary in relation to HSBC Life Retirement Income is available and can be obtained from our authorized product distributor. A person interested in these products should read the relevant product summary for details before deciding whether to buy this product.

Protected up to specified limited by SDIC.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

 

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