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
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.
The white space in retirement
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.
Short-term versus long-term trade-offs: Half of the survey respondents are looking to plan mini-retirements in the future, with over 30 per cent planning to draw from retirement accounts to fund these, putting pressure on final retirement savings.
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Need for resilient income streams: Inflation, longevity risk, and market volatility demand solutions that adapt over time and provide certainty in unpredictable economic periods.
Market growth and demographic tailwinds
To understand the opportunity, it helps to look at the recent statistics and forecasts for Singapore and the Asia-Pacific.
- According to a GlobalData report, residents in Singapore are projected to spend S$59.5 billion on life insurance products by 2029. This surge highlights a growing recognition of the importance of financial protection against life and health risks.
- At the same time, the proportion of Singapore’s population aged 65 and above has risen from 12.4 per cent in 2014 to 19.9 per cent in 2024, and is projected to reach 24.1 per cent by 2030. This ageing demographic supports rising demand for retirement income, annuities which are financial products designed to provide a steady income stream during retirement, and legacy transfer.
Lessons from other markets
Given Singapore’s growing demographic imperative, high per-capita wealth, stable regulatory environment, and sophisticated investor base, there is a significant opportunity for insurers to address gaps in the retirement market and drive its growth.
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Yet, product innovation in Asia’s insurance section has generally lagged that of other countries. For example, indexed universal life plans recently gained traction in Singapore, but this product framework has been established globally for decades.
Drawing on my insurance leadership experience across the US, Europe and Asia, I observe some key trends that Singapore can learn from other markets.
One, customer needs are consistent. Regardless of geography, people want to capture upside in growth phases, protect against losses, enjoy guaranteed benefits with secured payouts, diversify their investments, avoid outliving their assets, ensure income keeps up with inflation and higher medical costs, and preserve their legacy.
Two, product sophistication matters. Many products in Singapore remain savings-focused and rigid. In comparison, the US market demonstrates the potential of well-established annuity offerings and infrastructure.
Three, the annuity industry’s sales in the US exceeded US$100 billion for seven consecutive quarters, reaching a record high of US$119.2 billion in the second quarter of 2025. Much of the growth over the past few decades has been driven by innovative product offerings, including fixed index annuities and registered index-linked annuities, which have transformed the retirement planning landscape in the US.
These products allow clients to grow their savings by capturing market upside while safeguarding against losses. They deliver a reliable income stream, with enhanced flexibility and robust protection, making them stand out from traditional annuity products.
In recognition of this untapped potential, HSBC Life is committed to accelerating the growth of Singapore’s retirement market. By delivering customer-centric solutions, we aim to address evolving needs while tapping the rising interest in indexed universal life plans, and leveraging our global expertise and capabilities.
Reimagining retirement by redefining insurance
Retirement solutions should be shaped around the unique lifestyle needs of customers, and not by a one-size-fits-all, insurance-led fixed payout plan. By leveraging our global expertise in banking, asset management, and insurance product innovation, we are redefining retirement planning in Singapore and across the region, optimising solutions to suit the dynamic financial landscape in Singapore.
To achieve this, we envision a framework built on:
- Accumulation strategies that capture market upside while safeguarding against downside risks;
- Flexibility in choosing when and how much income to draw, tailored to changing life stages;
- Inflation-indexed retirement income to ensure wealth and purchasing power are not eroded amid rising living costs; and
- Longevity guarantee that eliminates fear of outliving their assets.
Retirement is a pivotal milestone, an opportunity to live life on your own terms while enjoying the true wealth that you deserve.
The writer is chief product propositions officer, HSBC Life Singapore
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