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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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.
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.
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.
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.
If you become disabled due to an accident, you'll receive additional monthly income aid , and all future premiums will be waived.
In the event of your death, your appointed spouse, who is also a joint owner, will succeed your policy.
If you don't need your retirement monthly income right away, you can choose to let it grow with Prudential.
For plans purchased with a single premium, you can choose to pay using your SRS funds.
| Age | What suggestion covers | Premium |
|---|---|---|
| 56, Female making $2,888 a month | total monthly payout $107 guaranteed monthly payout $200 non guaranteed monthly payout $19 | $4,079 |
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:
Total: $1,093
Year 2:
Total: $1,186
Year 3:
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 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.
This is the fixed amount you'll receive every month , regardless of market performance.
This portion is declared yearly and depends on the performance of the participating fund. Once declared, it becomes guaranteed for that year.
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.
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.
One of the key strengths of PRUActive Retirement II is its flexibility. Here's how you can customize your plan:
Choose to pay a lump sum or spread your payments over a period that suits your financial situation.
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.
Select a payout period of 10, 15, 20, 25, or 30 years based on your retirement needs.
Decide whether to receive your payouts as income or reinvest them with Prudential for potential growth.
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
Non-guaranteed portions of income depend on fund performance
Early termination may result in significant losses
Requires long-term commitment for optimal benefits
This plan could be ideal for:
Yes, PRUActive Retirement II offers flexibility to adjust your payout period based on changing needs.
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.
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.
PRUActive Retirement II doesn't currently offer CPF payment options, but you can use SRS funds for single premium plans.
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.
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.
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.
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Read the complete transcript of our expert discussion about PRUActive Retirement II. This detailed analysis covers key features, benefits, and important considerations for potential policyholders.
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