Endowment Plan Returns Calculator Singapore 2026

Compare guaranteed vs projected maturity values, compute your IRR, and decide if an endowment plan fits your financial goals — free calculator in SGD.

Understanding Endowment Plan Returns for Singapore Investors

Endowment plans are savings-cum-insurance products issued by MAS-licensed life insurers. They combine a death or total permanent disability (TPD) benefit with a disciplined savings component that matures at a fixed date. Most Singapore participating (par) endowment plans sold today illustrate returns at two MAS-mandated rates: 4.25% and 4.75% per annum — these represent the projected long-run returns of the insurer's participating fund, not guaranteed outcomes. The guaranteed portion typically ranges from 1.5% to 3.0% p.a. and is contractually locked in. This calculator lets you model both scenarios side by side, compare the effective Internal Rate of Return (IRR) against alternatives such as Singapore Savings Bonds or T-bills, and assess whether a specific plan fits your timeline and risk appetite.

Not financial advice. All figures are for educational reference only. Data as at Q3 2026 unless noted. Speak to a MAS-licensed adviser before purchasing any insurance or investment product.

How Participating Endowment Plans Work

Your premiums — paid monthly, annually, or as a lump sum — flow into the insurer's par fund, a pooled portfolio of bonds, equities, and real assets. The par fund declares annual bonuses (also called reversionary bonuses or cash values) which are credited to your policy. Once declared, these bonuses are guaranteed and cannot be taken away. At maturity, you receive the sum assured plus all accumulated bonuses. Insurers are required by MAS to submit a Fund Performance Report annually, giving policyholders visibility into how the par fund is invested. The 4.25% and 4.75% MAS illustration rates represent the par fund's projected long-term investment return before charges, not the net return to you.

Guaranteed vs Non-Guaranteed Returns: What the Numbers Actually Mean

The critical distinction in any endowment illustration document is the split between guaranteed and non-guaranteed values. The guaranteed surrender value is what you would receive if the insurer could not pay its non-guaranteed bonuses at all — it is the legally binding floor. The non-guaranteed bonuses depend on the par fund's actual investment performance. In a low-interest-rate environment (2020–2023), many insurers cut bonus declarations; in a higher-rate environment like 2025–2026, bonus declarations have improved. When comparing plans, look at the guaranteed IRR rather than headline illustrations, because it tells you what you will definitely earn even in an adverse scenario.

How to Use This Endowment Plan Calculator

1. Select Premium Frequency: Choose monthly (most common for regular-premium plans), annual, or single premium (for short-term endowments like 2-year or 5-year FD alternatives).
2. Enter the Premium Amount: Type in the amount from your policy illustration. For monthly plans, typical amounts range from S$200 to S$2,000 per month.
3. Set the Policy Term: Drag the slider to match your plan's tenure — common terms are 10, 15, 20, or 25 years. Shorter-term plans (5 years) are often used as fixed deposit alternatives.
4. Adjust the Guaranteed Rate: Set this to the guaranteed IRR shown in your illustration document. If you do not have it, a conservative 2.5–3.0% p.a. is typical for most Singapore par plans in 2026.
5. Adjust the Projected Rate: Use the MAS illustration rate (4.25% or 4.75%) or the insurer's stated illustrated yield. This gives the projected (non-guaranteed) scenario.

The calculator instantly shows maturity values, net gains, and the effective IRR for both scenarios. Use IRR to compare directly against the yield you would earn on a Singapore Savings Bond, T-bill, or fixed deposit over the same period.

Pro tip: Combine this calculator with our Retirement Planning Calculator to see how endowment plan maturity proceeds could fund your retirement income target.

What Is an Endowment Plan?

An endowment plan is a life insurance product that pays out a lump sum — either on a specified maturity date or on the insured's earlier death — in exchange for regular or single premium payments. In Singapore, endowment plans are sold by MAS-licensed life insurers such as AIA, Great Eastern, Manulife, Prudential, and NTUC Income. They broadly divide into two categories:

Participating (Par) Endowment Plans invest your premiums in a shared participating fund. You receive a declared bonus each year (non-guaranteed), plus a terminal bonus at maturity (also non-guaranteed). The guaranteed sum assured and accumulated guaranteed bonuses form your contractual floor. Par plans issued in 2026 commonly offer 10-, 15-, 20-, or 25-year terms. The MAS mandates that all illustrations show two projected returns: 4.25% and 4.75% per annum at the par fund level.

Non-Participating (Non-Par) Endowment Plans offer fully guaranteed maturity values in exchange for a lower potential upside. These are simpler products — what you see in the policy document is exactly what you receive. Short-term non-par endowments (2–5 years) are popular as fixed deposit alternatives because they can lock in rates ahead of interest rate cycles. In 2026, with the US Federal Reserve in an easing cycle, many Singapore investors are considering short-term endowments to lock in rates above 3% p.a. before yields fall further.

How the IRR Calculation Works: The Maths Behind Endowment Returns

The Internal Rate of Return (IRR) is the most useful metric for comparing endowment plans because it accounts for the timing of each premium payment. Unlike the simple ratio of maturity value to total premiums, IRR treats your premium payments as a series of cash outflows and the maturity payout as a single cash inflow, then solves for the discount rate that makes the net present value zero.

For a monthly-premium plan, the calculation is:

FV = PMT × [(1 + r_m)^n − 1] / r_m

where PMT is the monthly premium, r_m is the monthly discount rate, and n is the number of months. The annual IRR = (1 + r_m)^12 − 1. The key insight is that the IRR will always be lower than the par fund's illustrated rate because: (1) distribution charges and policy fees are deducted from the par fund; (2) each premium only earns returns from the month it is paid, not from day one; and (3) early-year surrender charges mean that if you terminate the policy early, your effective IRR can be deeply negative. Our calculator models the theoretical IRR based on your inputs — to get your actual guaranteed IRR, refer to the guaranteed maturity value in your policy illustration document.

As a practical benchmark for 2026: Singapore T-bills yield approximately 3.3–3.5% p.a. for 6-month tenors, while Singapore Savings Bonds yield approximately 2.8–3.2% p.a. for 10-year average. A 20-year endowment plan with a guaranteed IRR of 2.0–2.5% p.a. is broadly competitive with SSBs once you account for the death benefit and the lock-in nature that enforces savings discipline.

Endowment Plans vs SSB, T-Bill, and Fixed Deposit in Singapore

Singapore retail investors have several alternatives for medium- to long-term capital accumulation. The table below compares endowment plans against other common fixed-income options as at Q3 2026:

The main advantages of an endowment plan are the forced savings discipline and the life insurance coverage layer. If you need maximum liquidity, the Singapore Savings Bond is superior — you can redeem it any month. If you want the highest short-term guaranteed rate, the T-Bill/SSB/FD Comparison Calculator will help you find the best rate for your tenor. Use our endowment calculator when evaluating longer-term plans where the par fund's projected bonuses significantly exceed the guaranteed floor.

Where to Buy Endowment Plans in Singapore

You can purchase endowment plans through three main channels in 2026: (1) a tied agent from a single insurer, (2) an independent financial adviser (IFA) who can access multiple insurers, or (3) direct digital platforms. For investors who prefer a self-directed approach, Endowus offers institutional-priced insurance products with adviser support through its insurance marketplace, including endowment and whole-life options. FSMOne also lists selected insurance products. Before purchasing, always request the full Policy Illustration document and look at the guaranteed IRR on page 1 — not just the headline projected returns.

When comparing plans, look beyond the projected maturity values. Key metrics to evaluate are: (1) Guaranteed IRR — what you earn with certainty; (2) Bonus history — has the insurer consistently maintained declared bonuses over the past 10 years?; (3) Par fund asset allocation — a higher equity weighting offers more upside but more variability; and (4) Policy charges — some plans have front-loaded distribution costs that significantly reduce early surrender values. The MAS Financial Consumer Alert list is also worth checking before selecting any insurer.

MAS Regulations and Par Fund Transparency in 2026

Since 2022, MAS has required Singapore life insurers to publish annual Par Fund Performance Reports (PFPRs) for each of their participating funds. These reports disclose the par fund's investment returns, asset allocation, expense ratios, and the year's bonus declarations — giving policyholders meaningful visibility into the engine behind their endowment returns. From 2025 onwards, MAS also mandated that policy illustrations include a third projection scenario at a lower rate (3.00% par fund return) to better reflect downside risk.

The MAS Balanced Scorecard framework also governs how financial advisers are compensated, reducing the incentive for churning (replacing one policy with another to earn new commissions). If you are reviewing an existing endowment plan, use our calculator to model the guaranteed IRR of your current plan versus the projected IRR of a suggested replacement before agreeing to any switch. CPF savings cannot be used to fund regular-premium endowment plans directly, but the cash released from an SRS account at retirement can be used. Our SRS Tax Savings Calculator helps you see how topping up your SRS account and channelling proceeds into long-term savings products stacks up tax-efficiently.

Endowment Plans as a Retirement Savings Strategy

For many Singaporeans, endowment plans serve as a structured, autopilot savings vehicle alongside CPF. The regular premium commitment removes the temptation to spend and creates a guaranteed capital base at a future date — useful for goals like children's education (targeting maturity at age 18–21), wedding expenses, or supplementary retirement capital at age 60–65. When layered with CPF LIFE payouts, a 20-year endowment maturing at 65 can bridge the gap between CPF LIFE monthly income and your desired retirement spending level.

To see how an endowment plan maturity payout affects your overall retirement readiness, combine this calculator with our Retirement Planning Calculator and our CPF LIFE Payout Calculator. For investors who want the insurance protection element without the locked-in premium commitment, our Buy Term, Invest the Rest (BTIR) Calculator models whether separating insurance and investments produces a better outcome for your specific profile. As a general rule, endowment plans work best for investors who value certainty and discipline over maximum flexibility or maximum return.

You can also explore our Passive Income Singapore guide to see how endowment proceeds can be reinvested into dividend-yielding assets at maturity to generate ongoing cash flow during retirement.

Frequently Asked Questions

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