The savings prison

When there's no end in sight to putting money aside – it's a drag.

We've all been there.  We get a sudden surge of motivation to plan for the future and start checking out the plans available in the market.  Then we see that the contribution period is something like 20 years.  Are you kidding me?  I have to set aside a part of my salary every single month for the next 20 years?!  I can't even commit to a 2-year contract with my telco, much less 20 years.  No, thank you!

Here's the good news: it doesn't have to be that way.  If you prefer a shorter commitment period to get it over and done with, there are options for you.  Don't let your fear of commitment get in the way of planning for your dream retirement. 

Single premium plans

There are plans in the market that require just a one-time payment.  The minimum one-time payment required is typically in the 5-digit range.  For example, with Aviva's MyIncomePlus, the lowest one-time contribution you can make is about $24,000.  Once the one-time payment is made, you can just sit back and relax. At a chosen time in the future (you decide when), you then get back your guaranteed returns either as a lump sum, or as a monthly income, or a mix of both (your choice).  Easy peasy! 

Short term contribution plans

If you don't have a 5-digit sum sitting in your bank and/or prefer to make regular monthly contributions, don't worry.  You still don't necessarily have to make a long-term commitment.  In fact, you can get it over and done with in just a few short years.

An example would be Aviva's MyRetirementChoice.  Contribute a monthly amount you're comfortable with for a period of time of your choice, which can be as short as just 5 years.  That's it, you're done.  At your chosen retirement age, you start receiving a guaranteed amount every month to sustain you through your golden years (or choose to get it all in one go if you prefer). 

TL;DR: Planning for retirement doesn't mean paying premiums forever. Find a retirement plan with a short term payment commitment if you'd rather get it over and done with faster.

About the author: Aviva

We're one of the leading providers of retirement, investment, insurance and health solutions in Singapore. We're a provider of Medisave-approved Integrated Shield plans, an appointed insurer for the national ElderShield scheme, and have protected SAF servicemen since 1983. In the general insurance space, we were the pioneer insurer in Singapore to offer car insurance online, changing the market landscape. To find out more about the solutions we offer, please visit here.

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