Singapore’s Life Annuity Market Set for Robust Growth
Singapore – The life annuity insurance market in Singapore is expected to experience substantial expansion, reaching an increase of $603.3 million (S$803.1 million) by 2028. This growth represents a compound annual growth rate (CAGR) of 3.4% between 2023 and 2028. Rising demand for financial security, particularly during retirement, is the primary driver according to a recent Technavio report.
Image: People in Singapore
Fixed Annuities and Market Appeal
Fixed annuities are gaining popularity, offering guaranteed income streams and tax advantages, which are key factors behind the market’s positive outlook. These products attract individuals seeking to enhance their retirement savings.
Agents and brokers are also vital in helping consumers navigate the complexities of annuity products, providing guidance to make informed financial decisions.
Factors Fueling Demand
Additional factors contributing to the increasing demand for annuities include growing awareness of the importance of estate planning and the costs associated with long-term care. Annuities provide a steady income source and potential tax benefits, thereby appealing to a broader segment of the population.
Market Challenges
Despite the positive growth trajectory, the market does face challenges, including cybersecurity threats and the impact of interest rate fluctuations on investment returns. However, the report suggests that the market will likely maintain steady growth as consumers prioritize financial stability in their retirement planning.
Note: (US$1.00 = S$1.33)
