Endowment

PRUActive Retirement II: Your Customizable Path to a Secure Retirement

Are you worried about maintaining your lifestyle after retirement? You're not alone. With increasing life expectancy and rising living costs , planning for retirement has never been more crucial. Enter PRUActive Retirement II, a unique and highly customizable retirement plan designed to give you the financial security and flexibility you need to enjoy your golden years to the fullest.

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What is PRUActive Retirement II?

PRUActive Retirement II is a first-of-its-kind retirement plan offered by Prudential. It's specifically designed to weather market volatility while providing you with a steady, cumulative retirement income . This plan stands out for its flexibility and ability to adapt to your changing needs, making it an excellent choice for those who want to take control of their retirement planning.

Key Features That Make PRUActive Retirement II Unique

Monthly Income That Never Decreases

Once your payout begins, you'll receive a guaranteed monthly income plus a non-guaranteed portion that can potentially increase year-on-year. This feature, known as Step-up Income, ensures that your retirement funds keep pace with inflation.

Flexible Payout Options

You can start receiving payouts as early as age 50 and continue for up to 30 years. What's more, you have the flexibility to adjust your payout period based on your changing needs.

Customizable Premium Terms

Whether you prefer to pay a lump sum in the first year or spread your payments over a longer period, PRUActive Retirement II offers flexible premium terms to suit your financial circumstances.

Accidental Disability Coverage

If you become disabled due to an accident, you'll receive additional monthly income aid , and all future premiums will be waived.

Surviving Spouse and Joint Ownership Benefit

In the event of your death, your appointed spouse, who is also a joint owner, will succeed your policy.

Option to Grow Your Retirement Funds

If you don't need your retirement monthly income right away, you can choose to let it grow with Prudential.

Supplementary Retirement Scheme (SRS) Payment Option

For plans purchased with a single premium, you can choose to pay using your SRS funds.

Real premiums suggested for PRUActive Retirement II

56, Female making $2,888 a month

Coverage:
total monthly payout
$107
guaranteed monthly payout
$200
non guaranteed monthly payout
$19
Premium:
$4,079
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How PRUActive Retirement II Works

Let's look at an example to better understand how this plan can work for you:

Meet Jack, a 32-year-old with two kids. He starts his PRUActive Retirement II plan by paying $625 per month for 18 years, until his daughters enter university. His total premium paid is $135,000.

At age 50, Jack's premium payments end. He continues to let his funds grow until he retires at age 63.

When Jack retires at 63, his payout period begins. Here's what his monthly income looks like:

Year 1:

  • Guaranteed Monthly Income: $1,000
  • Non-Guaranteed Monthly Income: $93

Total: $1,093

Year 2:

  • Guaranteed Monthly Income: $1,000
  • Step-up Income: $93
  • Non-Guaranteed Monthly Income: $93

Total: $1,186

Year 3:

  • Guaranteed Monthly Income: $1,000
  • Step-up Income: $187
  • Non-Guaranteed Monthly Income: $93

Total: $1,280

This pattern continues, with the potential for the non-guaranteed portion to increase each year. By Year 15 (when Jack is 78), his total monthly income could potentially reach $1,633.

Over the 15-year payout period, Jack's total potential payout could be:

  • Total Monthly Income Payout: $372,961
  • Maturity Benefit Payout: $38,926

Total Potential Payout: $411,887

This allows Jack to maintain his standard of living, achieve financial independence, and ensure his kids don't have to worry about his financial situation.

Understanding the Different Income Components

Guaranteed Monthly Income

This is the fixed amount you'll receive every month , regardless of market performance.

Non-Guaranteed Monthly Income

This portion is declared yearly and depends on the performance of the participating fund. Once declared, it becomes guaranteed for that year.

Step-up Income

This is made up of the Non-Guaranteed Monthly Income declared from past years. It's guaranteed once declared and is paid in addition to the Bonus Income and Non-guaranteed Monthly Income.

Bonus Income

At the start of the payout period, the reversionary bonuses built up until this point are converted to form the Bonus Income. This becomes guaranteed on conversion and is paid throughout the payout period.

Customizing Your PRUActive Retirement II Plan

One of the key strengths of PRUActive Retirement II is its flexibility. Here's how you can customize your plan:

Premium Payment

Choose to pay a lump sum or spread your payments over a period that suits your financial situation.

Payout Start Date

You can start receiving payouts as early as age 50 or defer them to a later age if you want your funds to grow more.

Payout Duration

Select a payout period of 10, 15, 20, 25, or 30 years based on your retirement needs.

Payout Utilization

Decide whether to receive your payouts as income or reinvest them with Prudential for potential growth.

Why Compare PRUActive Retirement II with other Endowment Options through Whatins?

Traditional Approach

  • Only see one company's projected returns
  • May push higher projections without context
  • Limited comparison of guaranteed amounts

Whatins Advantage

  • Compare guaranteed returns across insurers
  • See how different companies project returns
  • Get multiple views on bonus rate histories
  • Understand different payout structures

Pros and Cons of PRUActive Retirement II

Pros

  • Highly customizable to suit individual needs

  • Guaranteed income that never decreases

  • Potential for increasing income over time

  • Flexibility to adjust payout period

  • Additional protection against accidental disability

  • Option to use SRS funds for single premium plans

Cons

  • Non-guaranteed portions of income depend on fund performance

  • Early termination may result in significant losses

  • Requires long-term commitment for optimal benefits

Who Should Consider PRUActive Retirement II?

This plan could be ideal for:

  1. Those looking for a flexible retirement planning solution
  1. Individuals who want guaranteed income with potential for growth
  1. People who prefer customizable premium and payout options
  1. Those concerned about the impact of inflation on their retirement funds
  1. Individuals who want to protect their spouse's financial future

Frequently Asked Questions

Can I change my payout period after starting the plan?

Yes, PRUActive Retirement II offers flexibility to adjust your payout period based on changing needs.

What happens if I pass away during the policy term?

If you've appointed your spouse as a joint owner, they will succeed the policy. Otherwise, a death benefit will be paid to your beneficiaries.

Is the non-guaranteed portion of income likely to increase every year?

While it's possible, it depends on the performance of the participating fund. However, it's guaranteed never to decrease from the previous year's amount.

Can I use my CPF funds to pay for this plan?

PRUActive Retirement II doesn't currently offer CPF payment options, but you can use SRS funds for single premium plans.

What if I need to terminate the policy early?

Early termination usually involves high costs, and the surrender value may be less than the total premiums paid. It's best to view this as a long-term commitment.

Conclusion

PRUActive Retirement II offers a unique and flexible approach to retirement planning . With its customizable features and potential for growing income, it can help you maintain your desired lifestyle throughout your retirement years. However, as with any financial decision, it's crucial to carefully consider your personal circumstances and long-term goals before committing to a plan.

Remember, the key to a comfortable retirement is early and thoughtful planning . PRUActive Retirement II provides a tool to help you achieve that, but it's important to make an informed decision based on your individual needs and financial situation.

Ready to take the next step in securing your retirement? Don't rely on just one perspective. Get expert insights tailored to your unique situation. Sign up now to receive 5 expert opinions on retirement planning. These professionals will review your specific circumstances and provide personalized recommendations, helping you make the most informed decision possible.

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By consulting with multiple experts, you'll gain a comprehensive understanding of your options and ensure you're choosing the best retirement strategy for your golden years. Don't leave your future to chance – get the expert advice you deserve today.

Why people were suggested PRUActive Retirement II

Alice
Alice, 56
GenderFemale
Monthly Income$2,888
Insurance Types Suggested
  • Investment Linked Plan
  • Endowment
Why PruActive Retirement was suggested:
This PruActive Retirement plan was recommended to provide additional monthly income during retirement, which aligns with the prospect's stated concern for more retirement income. The 20-year payout term starting at age 67 complements the CPF LIFE payouts beginning at 65. The step-up income feature allows for increasing payouts year-on-year, helping to maintain the desired standard of living.
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