Advice for a retiree on investing the savings

FROM A RETIRED PERSON

Hi Mr Tan,

About 1 1/2 years ago, I mentioned in passing to one of your staff that I am impressed by your personality. I told her that though I do not know you personally, the write-ups about what you do tell a lot about your person. My husband had spoken to you in person at one of your seminars and was pleasantly surprised that you were sincere and approachable.

Shortly after I received an email from your staff conveying your appreciation for the compliments, and it was followed by a simple 2-word yet personal "thank you" email from you. Each time when I clear my mail, I am reluctant to delete your thank you note as it represents a comforting affirmation that we do the right thing to buy from NTUC Income.

I wish you well and hope you have many more years of good health and is able to steer NTUC Income for a long time

Currently I am still unsure whether I should buy a growth or annuity policy or split the $90,000 (CPF ordinary account on attaining 55) and buy both policies. I have been in contact with your insurance personnel but would much appreciate your personal take as to what the best option is. Thank you.

MY REPLY

Dear

Thank you for much for your kind words.

For most retired people, my advice is to buy a life annuity, as it provides an attractive return and provides an income for a lifetime.

However, the actual right answer has to take into account, the other factors. For example, do you have other sources of savings and income? I will ask my adviser, XYZ, to contact and advice you. He has advised some other retired people who have invested large sums of money with us, partly in a life annuity and partly in our investment fund.

I believe that he can give good advice to help you to make the right decision.