What you need to know about Maybank's 2 new retirement plans

Maybank aims to get RM250 million in premiums in the first year.

According to a release, Smart Retirement is a regular premium endowment with guaranteed yearly cash payout. It offers guaranteed acceptance with no medical check-up required. Golden Retirement meanwhile is a single premium investment-link plan that guarantees minimum 110% of original investment paid back while offering life insurance coverage.

Maybank Deputy President and Head of Community Financial Services, Lim Hong Tat said both plans provide saving opportunities for customers who do not want to compromise on their lifestyle requirements after retirement.

"Planning one’s savings has become quite a challenge in view of the impact of the rising cost of living, especially in health care,” he said. “Many people assume that their savings in the Employee Provident Fund (EPF) will be sufficient to tide them through after retirement but some surveys show that 70% of retirees exhaust their EPF savings within a few years after retiring.”

Lim said that the two Plans bring to the market additional alternatives for retirement savings. “Given the growing awareness to ensure financial stability after retirement, Maybank is committed to designing products that can meet changing customer needs,” he said. “Our aim is also to leverage on our expertise in insurance and asset management within Maybank Group to strengthen our market leadership in community financial services.”

Smart Retirement which will provide guaranteed yearly cash payouts, comes in two term options namely a 20-year policy tenure with a premium payment term of 10 years; and a 30-year policy tenure with a premium payment term of 15 years. It is open to individuals aged 18 – 50 years.

Under this Plan, customers are provided with a guaranteed yearly payout of up to 8.5% of the total contractual premium, depending on the choice of policy terms, or with reinvestment options on their annual cash payout. The guaranteed cash payout (GCP) can either be withdrawn annually or left to be accumulated with the Plan. With reinvestment of the GCP, customers can enjoy potentially higher returns on their total payout at the end of the policy tenure.

The Plan also ensures that the customer is covered for misfortunes such as death or total and permanent disability (TPD). In the event of TPD or death at any time during the policy duration, cash amounting to five times the annual premium plus account value will be payable whereas in the event of accidental TPD or death before the age of 65, customers or their loved ones will receive 10 times the annual premium paid.

Meanwhile, Golden Retirement is a fixed 15-year single premium investment-linked plan with a minimum premium of RM25,000. It is open to individual aged 18-65 years.

This Plan comes with an approved fund size of RM200 million. Apart from the guaranteed return of 110% of the original investment, it offers life insurance coverage of up to 125% of the initial investment. The guaranteed returns will be in the form of minimum cash payments in 10 equal installments. In addition, potential returns can be derived from a dynamic asset allocation strategy through investments in fixed income instruments and an Active Index Portfolio