Rank

Annuity Provider

Until age 82

Until age 92

CPF Board

$180,000

$180,000

NTUC Income, total

(guaranteed portion)

$188,990

($119,330)

$329,650

($178,990)

HSBC

$119,350

$185,580

AIA

$113,280

$169,920

GE Life

$111,645

$167,470

Prudential

$105,000

$157,500

Aviva

$104,760

$157,140

Asia Life

$104,000

$156,140

Important Information

(i) The table shows total payments from age 62 until age 82 and age 92. Payments assume $94,600 in the retirement account at age 55 with payments beginning at age 62.  It is the required minimum sum for CPF members who turn 55 from July 1 2006 to June 30 2007. Members may pledge property to reduce the cash component of their minimum sum by 50 per cent. (If they do, the required cash component of the minimum sum would be $47,300.)

(ii) The CPF Board's guaranteed payout is 4.0 per cent per year for 20 years (age 62 to 82). For members with the minimum sum of $94,600 at age 55, the payout comes to $750 per month.  It totals $180,000 after 20 years.

(iii) For the 7 insurers, the guaranteed lifetime payout is 2.5 per cent per year. In addition, HSBC and NTUC Income pay a non-guaranteed annual bonuses of 1 per cent and 2.75 per cent -- (which is included in the figures in the table).

(iv) Based on mortality tables, 30% of men and 40% of women will live past age 82. 1% of men and 3% of women will live past age 92. 

(v) Among the group of persons who have already survived to age 62, twenty per cent will live another 30 years -- to age 92. (The figure is higher for women. Twenty per cent is the average for men and women.)

(vi) Should the annuity holder die before age 82, CPF rules require the insurance company to return the balance to the beneficiaries (after minor deductions for administrative costs).