Redefining retirement: Insurance as a distinct asset class

Delivering customer-centric solutions can address evolving needs while tapping the rising interest in indexed universal life plans. By Ouling Lu

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Affluent investors no longer see retirement as a single phase, but as a series of intentional pauses or “mini-retirements” from their career to realign and reinvent themselves.

(PHOTO: PIXABAY)

The insurance sector in Singapore continues to thrive, especially in the high-net-worth (HNW) and affluent segments, both onshore and offshore. Singapore's position as the go-to wealth hub for the greater Asia region is undeniable.

With increased market volatility, investor behaviour becomes more predictable. There is renewed interest in diversification, flight to safety, and solutions that blend protection, growth, and legacy planning. Insurance, when thoughtfully executed as part of a balanced portfolio, can be a unique asset class to address wealth accumulation, protection, and legacy needs in ways many other financial instruments cannot.

In a market saturated with accumulation-oriented solutions, retirement offerings with the flexibility to meet today's evolving customer needs remain scarce. In Singapore, most life insurance solutions emphasise fixed-period payouts (10-, 20-, 30-year payout terms), which can fall short in terms of flexibility, cost of living considerations, or longevity coverage as people live longer.

Recent data from HSBC's The Rise of Multi Retirements: A Quality of Life Special Report confirms a shifting mindset among the global affluent:

Retirement is being reimagined: Affluent investors no longer see retirement as a single phase, but as a series of intentional pauses or mini “multi-retirements” from their career to realign and reinvent themselves.