The Singapore life annuity insurance market is forecast to expand by US$603.3 million (S$803.1 million) between 2023 and 2028, marking a compound annual growth rate (CAGR) of 3.4%, according to a recent report by Technavio. The growth is largely driven by the increasing demand for financial security during retirement.
A key factor contributing to this growth is the rising popularity of fixed annuities. These products offer guaranteed income streams and tax benefits, making them attractive to individuals looking to supplement their retirement savings.
Agents and brokers play a crucial role in the market, helping consumers navigate the complexities of annuity products and make informed financial decisions.
In addition, growing awareness about estate planning and long-term care expenses is further fueling demand for annuities, as these products provide a reliable income source and potential tax advantages.
However, the market faces challenges, including cybersecurity threats and the impact of interest rate fluctuations on returns. Despite these risks, the market is expected to experience steady growth, with consumers continuing to prioritize financial stability in retirement.
(Exchange rate: US$1.00 = S$1.33)
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