How Long is SGli Good for After Retirement?
Retirement is a significant milestone in one’s life, marking the transition from active employment to a period of leisure and relaxation. For those who have contributed to the Singaporean General Insurance Limited (SGli) scheme, a common question that arises is: “How long is SGli good for after retirement?” This article aims to provide a comprehensive understanding of the duration and benefits of SGli post-retirement.
Understanding SGli
SGli, also known as the Supplementary Retirement Scheme (SRS), is a voluntary retirement savings account introduced by the Singapore government to encourage citizens to save for their retirement. Contributions to the SRS are made with after-tax income, and the funds grow tax-free until withdrawal. The primary objective of SGli is to help individuals accumulate sufficient savings to support themselves during their retirement years.
Duration of SGli Benefits
The duration for which SGli benefits are available after retirement depends on several factors, including the amount of savings accumulated, the age of the retiree, and the type of withdrawals made. Generally, SGli benefits can be accessed for a period of 20 years from the date of retirement or until the age of 70, whichever comes first.
Withdrawal Options
Retirees have several withdrawal options available under the SGli scheme:
1. Full Withdrawal: Retirees can choose to withdraw the entire amount of their SGli savings at once. However, this may not be the most advisable option, as it may deplete the retirement fund quickly.
2. Partial Withdrawal: Retirees can withdraw a portion of their SGli savings periodically, such as monthly or annually. This option allows for a more sustainable source of income during retirement.
3. Life Annuity: Retirees can opt for a life annuity, which provides a guaranteed income for the rest of their life. This option ensures that the retiree will receive a steady stream of income, even if their SGli savings run out.
4. Withdrawal upon Death: In the event of the retiree’s death, the remaining SGli savings can be paid out to their nominees or beneficiaries.
Importance of Planning
To maximize the benefits of SGli after retirement, it is crucial for individuals to plan their withdrawals carefully. This involves considering their financial needs, health conditions, and expected lifespan. It is advisable to consult with a financial advisor to determine the most suitable withdrawal strategy that aligns with one’s retirement goals.
Conclusion
In conclusion, the duration for which SGli benefits are available after retirement is generally 20 years or until the age of 70. Retirees have various withdrawal options to choose from, including full withdrawal, partial withdrawal, life annuity, and withdrawal upon death. Proper planning and consultation with a financial advisor can help retirees make the most of their SGli savings and ensure a comfortable retirement.
