2 Types of retirement planning products you will see in the market

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Retirement plan, savings plans, annuity, … the list goes on. At the end of the day, these products can be categorized into two main broad categories. The only difference between these 2 categories is in terms of the features and characteristics of the contract itself.

In today’s article, I’m going to walk you through these two main categories of retirement products that you should be aware of by going through the main features and characteristic of each category

Limited pay-out period retirement plans

Basically, how the policy work is simple:

1. Premium term: You pay for (x) years

2. Accumulation period: you wait for (y) years

3. Pay-out period: you receive an income – guaranteed and non-guaranteed – for (z) years

4. At the end of the pay-out period, you may or may not receive a lump-sum depending on the contract

To give you an analogy of this category of retirement plan, it is something like you saving money into a bank and slowly withdrawing it from your account during your retirement until the balance eventually reaches zero.