Manulife SmartRetire (V): Why You Can Look Forward to a Better Retirement

Looking for that insurance plan to tick all your boxes for retirement? Manulife SmartRetire (V) has the flexibility for you to customise your financial goals according to your retirement needs.

With younger Singaporeans being a pragmatic generation, most of us value the importance of early retirement planning.

Compounded by the onset of economic uncertainty, many of us are starting to realise that proper retirement planning has become more crucial than ever. 

Yet, how many of us can predict how much retirement income we’ll need? Not to mention factoring in the rising costs of living due to inflation.

Manulife’s 2021 Asia Care Survey shows that as much as 74% of Singaporeans expressed their rising interest in retirement planning, which has been becoming more important to them since the start of COVID-19. In the 2022 version of the same survey, it found that Singaporeans are focusing more on taking charge of their financial health as they prepare to live with COVID-19.

Planning for future

The average life expectancy in Singapore is 85.9 years for females and 81.1 years for males, based on the Department of Statistics in Singapore. 

On top of that, a Manulife survey on Singaporeans’ retirement saving attitudes and priorities highlighted that 72% of retired respondents regretted not planning and saving for retirement earlier. Close to 50% of them wished they had invested in a retirement plan when they were younger. 

On the same note, studies have shown that an increasing number of millennials are starting to plan for their retirement early. 

Ready to embark on planning for your ideal retirement? Follow us as we dive into Manulife SmartRetire (V) and this whole-life investment-linked policy (ILP) can help you stay on track with your retirement goals. 

#1 You can customise to your retirement goals

Everyone has their own retirement plan and needs that they want to fulfil. While someone’s ideal retirement goal would be at 75 to live a simple and carefree life, some may want to retire at age 50 and start travelling the world in their retirement years. This is why many may find it difficult to find a one-size-fits-all retirement plan.

Recognising the demand for a customisable insurance plan, Manulife Singapore launched a new ILP that can accommodate those who are planning for their retirement.

Manulife SmartRetire (V) allows you to customise the features according to your retirement needs with their 4-step model:

• Target retirement age: from 40 to 70 years old, in multiples of 5
• Retirement amount withdrawal preference: lump sum or stream of retirement income
• Target retirement sum or income (monthly): any amount tailored to your needs (non-guaranteed amount and depending on the market performance)
• Minimum Investment Period (MIP)¹: 8 Years Flexi 3, 8 Years Flexi 5, or 12 Years Flexi 8

¹Refers to the period that charges will be imposed if partial/full surrender is made.

💡 Pro-tip: To derive your ideal monthly retirement income, Manulife suggests using 70% of your last drawn salary and multiplying it by 12 to calculate how much you need a year. After that, multiply it by the number of years you plan to stay in retirement (the average is 30 years) to arrive at your overall goal for your retirement funds. 

#2 Premiums can be made affordable

Retirement planning should be accessible to all, regardless of financial circumstances. 

Premiums of Manulife SmartRetire (V) start as low as S$300² a month via cash. Premiums can be adjusted according to your selected target retirement age, target retirement sum or income, and MIP, subject to minimum and maximum basic premium amount. 

#3 It protects you from uncertainties

In recent years, what we once believed as stable careers have become volatile. When a steady income becomes uncertain, emergency savings are our saving grace. 

As part of Manulife’s Asia Care Survey 2022, only 28% of Singaporeans mentioned that they have enough savings to last for more than a year in the case of loss of work or income. Aside from the immediate financial risk, it’s important we also safeguard our future.

A retirement plan has to ensure that any economic downturns or unexpected situations will not set us back in our finances when we grow older, such as delaying our retirement. 

When it comes to retirement planning, the uninitiated may solely focus on wealth accumulation. Many may overlook the importance of insuring themselves, especially when they are older. You may have a healthy bank balance, but one episode of critical illness or disability may entirely wipe out your savings. 

As such, Manulife SmartRetire (V) offers insurance coverage on top of wealth accumulation.

² Applies to Minimum Investment Period 12 Years Flexi 8 plans.

During the MIP, you will be covered for death⁴ at the higher of 105% of total premiums paid⁵ or account value, less any amount owed to Manulife. There will also be a waiver of premium benefit on Total Permanent Disability (TPD)⁴ until the flexi start date⁶. 

During the accumulation period, you’ll have coverage for death⁴ at the higher of basic sum insured⁷ less any withdrawal made or account value, and less any amount owed to Manulife. Once you hit the retirement period, your coverage for death⁴ is the account value less any amount owed to Manulife.

A refund⁸ of Cost of Insurance (COI) that has been charged during the course of your policy will be refunded to you if the protection benefits are not utilised. 

³ The illustration assumes that there is fund growth and no withdrawal made to the policy. The actual fund(s) performance is dependent on market performance. It does not offer any guarantee that your selected Target Retirement Sum will be achieved.

⁴ Coverage for death of life insured is up to age 99. Coverage for waiver of premium benefit on TPD is up to before the flexi start date and policy owner's age 70.

⁵ Total premiums paid include total basic premiums paid plus any top-up premium, less any withdrawals.

⁶ It refers to the end of the premium shortfall charge period and you can vary your basic premiums.

⁷ Basic sum insured is equal to the selected Target Retirement Sum.

⁸ If there is no claim made on death or waiver of premium benefit on TPD before the Target Retirement Age, the cost of insurance charged on basic benefits will be refunded in a lump sum as additional units on the policy anniversary of the Target Retirement Age.

#4 It rewards you for investing

Manulife SmartRetire (V) helps to boost your investment with a Welcome Bonus at the start, which will be credited into your account in the first 12 months upon receipt of each regular basic premium payment in the form of additional units. 

There is also a Yearly Loyalty Bonus that will be paid starting from the next policy anniversary after the end of MIP and every subsequent year until the end of the policy term in the form of additional units.

In cases of emergency, you can opt for free withdrawal of your reinvested dividends⁹. 

Is Manulife SmartRetire (V) suitable for me?

Having the combined benefits of possible wealth accumulation, insurance coverage, and retirement goals, Manulife SmartRetire (V) might be a good option to complement your retirement portfolio. 

In addition to greater flexibility for your retirement planning, whether to retire with a lump sum or stream of retirement income and free withdrawal of reinvested dividends⁹, you’ll also receive a welcome bonus¹⁰ and yearly loyalty bonuses¹⁰ and refund⁸ of cost of insurance when protection benefits are not utilised. 

Promotion: You can enjoy up to 12.5% Additional Welcome Bonus on Basic Premium. T&Cs apply. 

Check out the other promotions for other Manulife products here.

⁹ It is available for policies that invest in dividend paying funds with the option to reinvest any dividend selected. Withdrawal of any reinvested dividend will impact the Loyalty Bonus.

¹⁰ Welcome bonus will be credited into your account in the first 12 months upon receipt of each regular basic premium payment in the form of additional units. Yearly Loyalty Bonus will be paid starting from the next policy anniversary immediately after the end of Minimum Investment Period and every subsequent year until the end of the policy term in form of additional units.

Important Notes

Manulife SmartRetire (V) and its supplementary benefits are underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 198002116D). This advertisement has not been reviewed by the Monetary Authority of Singapore. Buying a life insurance policy is a long-term commitment. There may be high costs involved if you terminate the policy early, and your policy's surrender value (if any) may be zero or less than the total premiums paid. Your investments are subject to investment risks, and you may lose the principal amount invested. The performance of the Manulife SmartRetire (V) Fund(s) is not guaranteed. The unit prices and any income accruing to it may fall as well as rise. The Fund Managers shall have the absolute discretion to determine whether a distribution is to be made in respect of the Manulife SmartRetire (V) Fund(s) as well as the rate and frequency of distributions to be made. The distribution yield for the Manulife SmartRetire (V) Fund(s) is not guaranteed, and the Fund Managers may review the distribution policy depending on prevailing market conditions. Distributions may be made out of income, net capital gains and/or capital. Past distribution yields and payments are not necessarily indicative of future distribution yields and payments. Any payment of distributions by the Manulife SmartRetire (V) Fund(s) may result in an immediate decrease in the net asset value per unit. You should read the prospectus and the product highlights sheet and seek financial advice before deciding whether to purchase units in the Manulife SmartRetire (V) Fund(s). A copy of the prospectus and the product highlights sheet can be obtained from a Manulife Financial Consultant or our Appointed Distributors.

This material is for your information only and does not consider your specific investment objectives, financial situation or needs. It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product(s) in the policy contract. 

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC websites (www.lia.org.sg or www.sdic.org.sg).

We recommend that you seek advice from a Manulife Financial Consultant or our Appointed Distributors, or visit any DBS/POSB Branch before making a commitment to purchase a policy.

Information is correct as of 1 November 2022.

This article is written in collaboration with Manulife.