Note: This post below has been updated on 25 August 2026.

Unanswered Questions from You Don’t Need to Invest to Retire Comfortably. Here’s Proof.

1. For the Lifelong annuity plan, is the surrender value same as the premiums put in? As per the example given during the webinar.

Yes, as in the example, the surrender value is designed to return the premiums you’ve put in, as long as the accumulation period has been fulfilled and usually after the payout began. Do note this can vary by insurer and product, so we always confirm the exact figures against your policy illustration before you commit.

2. For the income that continues to pay out to dependents, is there any conditions for the dependents to qualify? For example: only up to a certain age?

Continuation of income to dependents typically comes with conditions set by the insurer, such as who can be the beneficiary, and the maximum duration imposed by the policy. We’ll walk through the specific terms of any policy we recommend so you know exactly who qualifies and for how long.

3.We have been educated to top up our CPF with as much money as possible, but the 3rd scenario brought out during the webinar suggests that one could consider carving out some money to put into insurance annuities. How do I decide?

Maximising CPF LIFE isn’t wrong, but it isn’t automatically right for everyone either. The illiquidity, exposure to policy changes, and lack of flexibility mean putting too much in creates a concentration risk of its own. Linda’s third scenario is about striking a balance: getting a good payout while still retaining some liquidity (because life circumstances can change and your plan should allows that). It’s not a matter of choosing one extreme over the other, come talk to us and we can work out where that balance sits for you. 

4. Does an annuity plan needs huge lump sum? For example, more than $100k?

No, annuity plans don’t require a lump sum over $100k; many plans accept smaller entry premiums, and some allow regular contributions. The right size depends on your income goals and overall plan, which is exactly what we help you work out.

5. Will the secondary-insured receive the $150k as seen in the example brought out in the webinar after the primary-insured has reach age of 120?

This depends on how the policy is structured. Some secondary-insured plans continue paying income to the secondary insured for life, while others tie the payout to a fixed age like 120. We’d confirm the exact treatment against your specific policy contract so there’s no ambiguity.

6. Does policy specific risk continue to apply to someone passed the age of 55 that is already on CPF Life?

Change of CPF policy can happen any time. As mentioned, this type of risk is more pronounced for those who are young (due to a longer runway) as compared to one who is older or already receiving CPF LIFE payout.

7. Is it right to say that a secondary insured policy offers a continuous income stream whereas a legacy policy is lump-sum based?

It really depends on the definition of a legacy policy, as well as what the policy is intended to do. Generally, most legacy policies pays out a lump sum upon death or termination of the plan, however, there are some exceptions to this. Most legacy policies are not intended to provide income stream so it is best to understand what both these policies do and how they could add benefit to your portfolio.

8. In the example brought out during the webinar on Linda, if she adds to the cost to support Step 2 – Coverage Management, would she continue to have that much left for Step 3?

You’re right that the costs are inter-related. If Linda spends more on Coverage Management in Step 2, it does reduce what’s available for Step 3, Certainty of Income. From our experience working with clients, they often are able to reduce their overall insurance cost – as some old policies are no longer needed. That’s exactly why we plan the 3Cs together rather than in isolation, so any trade-off is made deliberately rather than by accident.

9. May I clarify the payout of the annuity? If one gets an annuity of a one-time premium of $150k at age 55, and receives $614/month at age 65, does this mean that the payout would gradually increase to $1538/month due to the 2% inflation rate?

In Linda’s example, she put in an initial lumpsum of $100k at age 55 and another $12,000 yearly savings for 10 years into an annuity programme. The annuity payout starts at $614/month (flat) from age 65 and then step up to $1,538/month (flat) from age 71 to 90. The example does not assume a gradual increase in payout but one-time increase. The factoring of inflation on Linda’s spending needs is done through an integration of her CPF LIFE, Insurance Annuities, and her Cash Equivalents (incl. CPF-OA).

10. CPF Life has 3 plans, which one does Havend advocate?

There’s no single ‘best’ plan – it is typically a discussion on the needs and preference with the client; his/her expected life span, need for bequest and inflation adjustment. Typically, in our planning we are inclined to use Standard plan as it gives the highest payout up to about age 90 but make adjustment depending on client’s ultimate objective.

11. What is the standard accumulation period for fixed term annuity plans? For someone that is retired that wishes to have a shortened accumulation period, what are some options available and what are the potential trade-offs?

Standard accumulation periods for fixed term annuities are typically around 5 years or longer. For retirees wanting a shorter runway, some plans offer reduced accumulation periods, though this usually comes with a lower payout or a higher required premium — a trade-off we’d work through with you based on your timeline.

12. Money in the CPF-OA is not idle, it earns 2.5% interest that is compounded yearly. Would you show the actual effective returns of the annuity plans suggested?

That’s a fair point. CPF OA earns a guaranteed 2.5% (with extra interest on the first $20k/$60k), so it isn’t idle money. In our planning, we assess one’s cash position, CPF-OA and other cash equivalents, set aside what that is needed for emergency and other liquidity needs, and then optimise the rest towards retirement income payout. It is a balanced approach on one’s need for liquidity and one’s need for income stream over the retirement or for life. When we recommend an annuity, we compare its effective yield against what you’d otherwise earn keeping funds in OA, so the trade-off is clear before you decide.

13. What are the returns or yield percentage for an annuity like? For term and lifetime policies.

Yields vary widely across insurers and between term and lifetime annuity structures, it also depends on factors like age, gender, accumulation period and premium contribution mode. A reasonable projected yield should be about 3-3.2%. It doesn’t make sense if the yield is less than 2.5%. Beyond yield, at Havend, we place greater emphasis on guaranteed payout in order to achieve higher certainty of income.

14. Does Havend recommend topping up CPF-RA to ERS?

While ERS gives you the best payout, you have to sacrifice on liquidity (cannot surrender), so it is more suited for those who have significant liquid assets — and hence not for everyone. At Havend, we recommend at least FRS (non-negotiable) as a base and then increase it with CPF top-up and insurance annuities. This way, you get a balance of higher payout and liquidity. The liquidity you give up with CPF, is offset by the liquidity gained from insurance annuity. And our RetireSURE approach, our model helps client to strike a good balance payout and liquidity.

15. If I am currently already an investor for many years and have been accumulating in diversified equity and bond funds using providers like Endowus and FundSupermart etc, would RetireSURE take that into account and suggest how an annuity may or may not be needed for my retirement income? Eg. redeem some equity/ bond fund holdings to put into an annuity plan instead.

Yes, RetireSURE will assess how much of safe reliable income you need for retirement, and in your case as an investor, the income level you would need for your essential expenses, like day-to-day spending, insurance premiums. It then optimises your CPF, insurance annuities and cash equivalents to build a diversifed income floor for your retirement, which might include paring down some investment if necessary.

16. I am aged 56 and have $500k in my CPF-OA and ERS in my CPF-RA. Is it better to keep my funds in OA or buy an annuity. The problem I have is I don’t know when I can or want to retire.

This is a dilemma we hear often, not knowing your exact retirement age makes it hard to decide how to commit. That’s precisely what RetireSURE is for: our Insurance Specialist works with you to clarify your retirement aspirations and scenario-plan a few retirement ages against your OA, ERS and cash, so you can see how each path plays out before committing. At 56 you have lesser runway, so it’s worth having this conversation sooner rather than later.

17. What happens if Havend or the insurance company collapses? What would happen to the money that we have with you or the insurance company?

Insurance companies in Singapore are heavily regulated, with stringent capital and solvency requirements set by MAS, and policies are further protected under the Policy Owners’ Protection Scheme (PPF) under the Insurance Act. It’s also worth noting that your policy and premiums sit directly between you and the insurer. Havend doesn’t hold or handle your money at any point, so even if Havend were no longer around, your policy remains fully intact with the insurer.

18. Is there a difference if I bought a $200k life annuity vs 2 X $100k life annuity if I intend to pass them on to my 2 children after I pass.

The payout amount won’t differ much between a single $200k policy and two $100k policies. However, if you’d like to transfer the policy to your children directly via the secondary insured route, having two separate policies is the cleaner option — if you’re simply nominating them as beneficiaries, either structure works.

19. Would it be too late to engage Havend for a RetireSURE assessment for a retiree who has started CPFLife payouts?

RetireSURE is primarily designed for those aged 65 and below. That said, it may still be workable for older retirees depending on individual circumstances, the best way to know for sure is to reach out to us for a preliminary assessment.

20. What is the shortest accumulation phase for both fixed term and life annuities?

For fixed term annuities, the shortest accumulation period is typically around 5 years, while some life annuities can start paying out as early as the 4th year. The exact minimum depends on the specific insurer and product.

21. For policies with a secondary life assured, I was under the impression that the secondary life assured an only be for minors below 21 years old.

That’s not accurate across the board, while some policies do restrict secondary insured status to minors, others allow a spouse or adult child to be named as the secondary life assured. We’d check the specific product’s terms with you to confirm what’s allowed.

22. In Linda’s case with RetireSURE, what if she discovered she has terminal illness with only 2 years left to life? As some of her money is stuck at CPF Life with ERS, isn’t better if she keeps her CPF Life at Standard plan in the first place so that she can use the extra money before she passes on?

That’s a fair concern, but none of us can know in advance how things will play out. That uncertainty is exactly why we plan for a range of scenarios rather than one outcome. In Linda’s Scenario 1, she sets aside just the FRS, which leaves more for bequest if she passes early, but her money doesn’t stretch to age 90 as she’d wanted; Scenario 2, maximising to ERS, secures income to 90 but ties up more money with less bequest. Her 3rd scenario strikes a balance: topping up CPF but not all the way to ERS, alongside an insurance annuity, giving her income to 90 with better liquidity along the way. Everyone’s situation and objectives differ, so it’s best to talk to our Insurance Specialist; Linda’s example simply shows there’s an alternative beyond optimising CPF alone.

23. In your example, how about getting Escalating CPF Life Plan and delaying payout to 70YO? Would that help in Linda’s planning?

Yes, that’s possible and can be modelled through RetireSURE. Delaying the payout and choosing the Escalating plan pushes the breakeven point further out, so it tends to benefit those who expect to live beyond age 95 rather than everyone. It’s a trade-off, and it’s exactly the kind of factor we work into the plan based on your specific retirement objectives.