Is Manulife SteadyPayout really paying 4% Guaranteed Yield?

The top most discussed product for 2025, an annuity plan by Manulife, Manulife SteadyPayout, promising a 4% guaranteed yield. But how is the 4% derived? Is Manulife SteadyPayout really paying a 4% guaranteed yield?

What is Manulife SteadyPayout?

Manulife SteadyPayout is a non-participating single premium endowment plan, paying you a yearly income for 9 years before the plan matures and terminate.

A non-participating plan is different from traditional participating plans that we usually sees. A non-participating plan does not take part in the bonus declaration declared by the insurer every year, whatever you see in the product illustration is whatever you will collect from the plan.

Read more: An in-depth review of Manulife SteadyPayout

How is Manulife SteadyPayout yield like?

If we based on a Single Premium of $100k place in Manulife SteadyPayout, the annual income you will be receving $13,450. A total of 9 years will pay $121,050, that will make your $100k yield $21,050 during the 9 years.

Capital: $100,000
Annual income: $13,450
Total income collected for 9 years: $13,450*9 = $121,050
Total returns: $21,050
Per Year returns: $2338.89

If we based it on a $100k lump sum, getting a yield of $2338.89 per year, the yield is about 2.34% per annum. 

Read more: 4 Best Endowment Plans in Singapore

How is the 4% guaranteed yield calculated by Manulife?

Manulife has the explanation on their website and on some social media comments on how they calculate their yield.

They have calculated based on a decreasing single premium once income started to pay out, and average the yield. As the pot starts drawing down, the capital becomes lesser, yet still yielding the same annual income, which in turns pushes up the yield for that year. The yield for the 9 years was then added together and averaged out, giving a 4% guaranteed yield as advertised.

 

Should I get Manulife SteadyPayout?

Well, the verdict is yours. Fixed deposit rates are at 2.4-2.7% with one year locked in.

Is Manulife SteadyPayout really a good alternative for placement of funds after the CPFSA (Special Account) closure?

What are the other alternatives that you can look at? 

Well, there are loads of alternatives, Whatsapp us, tell us your budget and needs, we can then recommend plans to you for considerations with no cost involved!

Why rush? Do a financial planning review with us first at no charge and make your decision at your own pace! Purchasing an insurance policy is a long term commitment, the price to pay for regrets is hefty! Leave your contact details via the form below for a free financial planning review! 

Read more: 4 Best Retirement Plans in Singapore 

Read more: Why a periodic insurance portfolio review is important