Singapore life annuity insurance market to grow by $603m by 2028

The attractiveness of fixed annuities has been a key driver.

The Singapore life annuity insurance market is projected to grow by US$603.3m (S$803.1m) between 2023 and 2028, registering a compound annual growth rate (CAGR) of 3.4%, driven by rising demand for financial security during retirement.  

The increasing popularity of fixed annuities, which provide guaranteed income streams and tax advantages, is a key growth driver, revealed a Technavio report.

These products appeal to individuals looking to supplement their retirement savings. 

Agents and brokers also play a critical role in guiding consumers through the complexities of annuity products and helping them make informed financial decisions.  

Growing awareness about estate planning and long-term care expenses is further driving demand for annuities, as they offer a steady income stream and potential tax benefits.

However, the market challenges include exposure to cybersecurity threats and the impact of interest rate fluctuations on returns.  

Despite these risks, the market is expected to maintain steady growth as consumers prioritise financial stability in retirement, the report said.

(US$1.00 = S$1.33)