I'm trying to search but can't find any. I'm looking for annuity products where you pay a lump sum (at say, age 60 or 65 or 70) and then receive level monthly payouts thereafter (or deferred until a pre-selected age) until death.

What I'm finding is a whole lot of retirement plans, but these are not pure life annuity products that I am looking for.

I have been looking out for these products to mitigate my retirement longevity risk . There aren't any available in Malaysia .

This post has been edited by chiacp: Jul 17 2023, 07:57 AM

You could perhaps try to purchase one from Singapore. I work in Singapore and I have 2 annuity plans that pay a total of $10,000 (around RM35,000) per month upon me reaching 65 until I drop dead or something like that. It's marketed by AIA, under their AIA Retirement Saver plan.

Hope that helps.

Forget about annuity plan. Just do it yourself. It's not that hard. Dump say RM100k into public bank or Maybank and continue collecting dividend until perpetually. It's a cheap DIY annuity vs what those insurance companies can sell you. All the commission and fees. Save the commission and fees and go out for nice makan with family.

annuities are cheaper (a lot cheaper if the pricing are competative) and more certain. Just take on additional risk of the provider going bankrupt.

Nah, I prefer to DIY my own plan. Don't forget about sales commission

I have a mix of strategies - my bonds & their coupons are a form of annuity, and I supplement that with purchased annuity plans from established players like AIA, and then there's the CPF Life, which I'll be enrolling when I turn 55.

that is true... for those of us who knows how to DIY and understands the difference. but common folks may not want to bother...

our way we still have the "principal" left for our descendants.

The traditional annuity will leave nothing upon death. Imagine buying one to start receiving income at age 60, but one kong at age 62. wasted.

yours is actually way better than many other's. Diversification of income stream and risks.

I can DIY but I prefer to have one for backup too, cause life happens

Yes, you are correct. But my wife and I decided against kids when we got married 30 years ago so our strategy reflects our life choice.

BUPA’s tagline hahaha. How apt.

Just put into maybank shares. At current prices, the div yield is 6.6%

Better than FD and insurance products. Don't be lazy.

For me I practice where my money is working the most efficiently. I have seen so many insurance savings plan/investment plan that cannot even beat EPF while my own investment beats EPF.

Another reason is why wait until xyz age then only payout happen? Better for me to have payout now and help reinvest and increase my future payout.

Third reason, I hate paying unnecessary commissions to middle man unless I can't help it.

Take it from me lah

There's no one product or plan that will solve all your problems.

But there will always be a strategy or action plan to get you exactly what you want.
You don't necessarily have to like the strategy or action plan, you just gta commit into the plan and execute on it.

If you really want one try moneyowl. They are not commission based so they can recommend you an unbiased product. But downside is likely have to travel down to sign all the required documents.

Anyway I leaned about DIY annuity from assi blog.

This post has been edited by Ramjade: Jul 17 2023, 05:44 PM

Annuity portfolio actually failed in Malaysia in the 80s... (if I have my facts right)

So you won't find any in Malaysia.

While annuities are great, it takes all the risk away from you, but it doesn't hurt too much to do it on your own.
On this matter, I actually agree with @Ramjade.

Just start early, start now, be diligent about it.

OR

To approach it DIY style with higher certainty, maybe engage an FP?
I highly endorse @holocene for this purpose

This post has been edited by JIUHWEI: Jul 17 2023, 06:12 PM

actually, your case is very special. based on a few of your postings, while your spending may appear high to many of us here, it is actually nothing compared to your networth/assets. And your assets are quite liquid, which makes it quite robust.

Plus due to your life choice, you don't need to get any annuity product at all. May as well just invest the annuity portion in some bond funds that goes super long duration and diversified across currencies.

Annuities are usually for people who worries they may live longer than their assets can last them, hence they convert that risk into a fixed cashflow as long as they are alive.
To some, they wanted diversification of risk.

There is something called too rich to be insured (retirement cashflow that is).

It is still cheaper to get an annuity that say starts paying at age 65 till death,
than to build a portfolio to match the cashflow starting age 65.

The difference is the lump sum at death, which the annuity provider will factor in. Think of it as a bet on how early the person will die.

btw, insurance providers love these products to reduce their insurance book risk.

The annuity plans I purchased were kind of a natural progression from the original “didn’t know any better so buy insurance” plans which I guess every young man who’s a bit financially naive went through with a friend of a friend’s who works as an insurance agent.

Once I realised that my income and savings and passive returns were more than required to cover my old age and then some, I changed strategies and focused more on full health insurance coverage and bought annuity plans instead of life or worst, investment linked policies.

These plans were bought decades ago, around the same time as my bond purchases started. They had lower entry criteria - I didn’t have to have $250,000 in cash per bond - so these annuities also had their value then.

I personally wouldn’t buy them again if I had a chance to turn back the clock, but hindsight is always 20/20…

curious... does the annuity provider allow you to redeem/terminate the plan and pay you back the "value" of the annuity plans?

Only in death - they pay 101% of all premiums paid. This is a pure savings plan. I pay for 10 years (I finished paying last year), and I draw $10,000 once I turn 65 until I die. I better stay healthy, so I get back more than I paid for hahaha.

that, or just don't inform them when you are gone....

like how Malaysia got dead people still "alive" and can go vote in election...