Life Insurance
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{{label}}24 May 2018
AIA Singapore’s Enhanced Retirement Saver (III) To Help Address Mounting Concerns Around Retirement
Healthcare or medical related spending expected to be a significant part of expenditure in old age
Singapore, 24 May 2018 – AIA Singapore today launched the enhanced AIA Retirement Saver (III) to help boost retirement adequacy among Singaporeans as life expectancies1 and the incidence of critical illnesses continue to increase.
The policy now offers significantly higher maturity yield and includes:
The enhancement of AIA Singapore’s popular AIA Retirement Saver plan addresses customers’ mounting concerns around retirement, providing them with the solution to start taking charge of their savings.
Key features of AIA Retirement Saver (III) offer enhanced returns, certainty, greater choice and guaranteed acceptance:
Enchanced Returns |
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A one-time terminal (non-guaranteed) dividends when customer dies, surrenders or on maturity of the policy
A new add on Critical Protector Waiver of Premium to waive the future premiums upon diagnosis of any of the covered critical illnesses |
Certainty |
Guaranteed monthly retirement income over the income payout period of 15 years
Capital guaranteed at retirement age Potential (non-guaranteed) monthly cash dividend to enhance retirement cashflow streams |
Choice |
Premium paying modes - Single premium, limited premium of 5 / 10 years, or regular premium up to age 55, 60, 65 or, newly added, 70
Accumulation period of up to age 55, 60, 65 or 70 (for retirement age 55, 60, 65 or 70 respectively) |
Guaranteed Acceptance |
No medical underwriting required |
Over the last decade, AIA Singapore has consistently delivered one of the strongest returns, outperforming industry averages.
In April 2018, AIA Singapore also announced S$494 million in par fund bonuses projected for the year4, with more than 70,000 policies benefiting from a bonus scale increase, some of which with bonus rates that are higher than illustrated at point of sale.
Ms Ho Lee Yen, Chief Customer and Marketing Officer of AIA Singapore, said, “AIA Retirement Saver (III) was designed to help Singaporeans grow and protect their retirement funds so they can enjoy the lifestyle they desire in their golden years with certainty.
“Healthcare and medical related expenses are an increasing concern, with people expecting to spend almost 20% of their retirement expenditure on this area. Even among those who have started retirement planning, more than 1 in 3 still feel unprepared.
“With this plan, we want to give our customers the confidence to take charge and plan for their retirement, which is easier and more achievable when they start at an early age. As Singapore tackles the challenges that accompany our demographic changes, we will continually enhance our products and services to meet our customers’ unmet protection needs, empowering them to live healthier, longer and better lives.”
These customer insights were obtained via AIA360, an online platform for our customers to provide feedback on their financial planning needs. This helps to support AIA Singapore in our continual efforts to develop and enhance our comprehensive suite of innovative products and services to address what our customers really want.
AIA Retirement Saver (III) was launched amid concerns around being able to cope with healthcare and medical related costs in retirement given Singapore’s demographic changes. Yet 4 in 5 would still like to retire before they are 65 years old and the median desired monthly retirement income is S$2,500 – a difficult ask, given average monthly savings of approximately S$1,5005.
This AIA360 retirement survey was completed by 421 respondents aged 21 to 60.
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Appendix: More details on AIA Retirement Saver (III)
Take charge
Easy & Simple
Start your retirement with AIA Retirement Saver (III) with just four key decisions:
Certainty during your retirement
Be confident of your retirement with AIA Retirement Saver (III) that provides:
Protection against Critical Illness
Attractive returns
About AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$216 billion as of 30 November 2017.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
Contacts
Joanna Ash | 6530 0863 | Joanna-TM.Ong-Ash@aia.com |
Dawn Teo | 6530 0875 | Dawn-my.teo@aia.com |
References
1 Singapore's life expectancy at birth has risen from 59 to 80 years in males, and 63 to 85 years in females from 1960 to 2015. Source: The Straits Times (2017), ‘Singaporeans are living longer – but are they ready for old age?’ Available at: https://www.straitstimes.com/opinion/a-lifetime-of-health-and-wealth-makes-for-good-retirement
2 Based on AIA Singapore’s recent survey among customers via the AIA360 retirement survey
3 STATISTICS SINGAPORE - Infographic - Life Expectancy at Birth
4 AIA S’pore to pay out S$494 million in policy bonuses (Apr 3, 2018). The Straits Times. Available at: https://www.straitstimes.com/business/aia-spore-to-pay-out-494m-in-policy-bonuses
5 Based on insights from AIA360 retirement survey.