17 March 2020

HSBC Life launches unique retirement solution


  • Only one of its kind currently available in Singapore
  • A single premium retirement solution that is capital guaranteed plan and offered in USD
  • Offers a high watermark feature that locks in higher income guarantees when account values exceed previous guarantee levels
  • Offers flexibility in that policyholder can access account value with no surrender charge

HSBC Insurance (Singapore) Pte. Ltd. (HSBC Life Singapore) has launched HSBC Life Variable Annuity.  A retirement plan which combines the assurance of a steady guaranteed base level of income and the ability to generate significant upside income potential. HSBC Life Singapore is the only insurer to offer this unique product currently.

Many of Singaporeans have reached a pivotal period of their lives.  They are starting to reach retirement and have a greater need to maintain a steady income for the years ahead. This solution responds to these needs by ensuring Singaporeans remain invested and protected from any sudden market fluctuations while allowing them to take advantage of any potential upside.

HSBC Life Variable Annuity offers:

  • A stream of guaranteed retirement income and potential lump sum payout at maturity
  • Fully participate in the market upside locking in higher guarantees along the way – this plan’s ratchet feature increases policyholder’s guarantee on a monthly basis whenever the account value is higher than the existing guarantee
  • Protect against downside risk – Policyholder’s monthly payout will never decrease even when the market falls
  • Flexibility to access the account value without surrender charges
  • HSBC Life FlexConcept Fund - a 10% volatility controlled fund which will invest in a blend of equity and bond markets

According to the Life Insurance Association (LIA) industry report in February 2020, Singaporeans are being pro-active in planning for their retirement.

The industry recorded a 34 per cent increase in the uptake of retirement policies in YTD 4Q2019 compared to a year ago. Retirement policies totaled S$469 million in weighted premium which forms about 11% of total weighted premiums for the year.

Today’s announcement reflects an increased focus for HSBC life in Singapore. In 2019, HSBC Life Singapore added three new protection and retirement solutions targeted at both the retail and high net-worth segments to their bench strength.  They included:

  • Life Protect Advantage which offers competitive protection value with unique features including coverage of pre-existing conditions and the option to get higher guaranteed protection up to 99 years old
  • Emerald Legacy Life Plan which offers a unique feature where customers have the choice to further increase their protection cover.
  • HSBC Life Retirement Income which offers a regular stream of monthly income when the insured reaches retirement as well as additional coverage should they be diagnosed with age-related conditions and chronic diseases. 

The product launches were part of HSBC Life Singapore’s business overhaul which also involved the launch of a new brand and widening its distribution channel to include independent Financial Advisory (FA) firms.

The business overhaul reflects the overall growth and evolving composition of Singapore’s insurance market, including an ageing and wealthier domestic population and a rise in international citizens seeking more sophisticated wealth and insurance solutions.