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Helping clients reimagine their retirement

ARTICLE BY

  • Fareeya Adam
  • Head: Annuities
  • Momentum Investments

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For many people, the biggest financial decision they face when they retire is how best to use their accumulated retirement savings from approved retirement funds to provide them with a sustainable income in retirement.

Traditionally, people have a choice between a life annuity and a living annuity, each with its own unique features and rules. Even if people decide to use some of their retirement savings to purchase a life annuity and some to invest in a living annuity, they may end up with two separate retirement income products that can make it difficult to manage their income during retirement.

There is a better way for people to, together with their financial adviser, plan and structure their finances when they retire to blend their need for certainty and flexibility and improve their financial health.

Enhanced Retirement Income Option

We have enhanced our living annuity product, the Retirement Income Option on the Momentum Wealth platform, to help you help your clients to structure their retirement income plan better. They no longer have to choose between the certainty of a life annuity and the flexibility of a living annuity – they can have the best of both in one retirement income solution.

By allocating a portion of their retirement savings to a life annuity component within their living annuity, your clients can personalise their income plan by deciding how much of their retirement savings they want to use to cover their essential ‘life expenses’; and how much they want to use for their more flexible ‘living expenses’.

This product enhancement will help clients make more informed decisions about their retirement income planning. They can choose to allocate a portion of their retirement savings to the new Guaranteed Annuity Portfolio that will pay a guaranteed income for as long as they live. At the same time, they have the investment flexibility to benefit from potential growth from investment markets and the possibility to leave a legacy, all in one living annuity.

The Guaranteed Annuity Portfolio is a life annuity, which is available as an optional investment component to clients starting a new Retirement Income Option or who already have a Retirement Income Option.

Investing is personal

We understand that a person’s investment is not just another investment – it’s something personal. It helps people to achieve their financial goals on their life journey. When something is personal, it really matters. That is why with us, investing is personal.

By blending the best of both worlds (the income certainty of a life annuity and the investment flexibility of a living annuity), we are partnering with financial advisers to help clients make better decisions about structuring and implementing suitable income solutions when they retire; and optimally manage their income during retirement to cater for changing income needs.

We’ve reimagined retirement income planning into a blended product solution that can help your clients make the rest of their life, the best of their life.

Momentum Wealth (Pty) Ltd (FSP 657) is an authorised financial services provider. Momentum Investments is part of Momentum Metropolitan Life Limited, an authorised financial services and registered credit provider (FSP 6406). The Retirement Income Option and the Guaranteed Annuity Portfolio are life insurance products, underwritten by Momentum Metropolitan Life Limited, a licensed life insurer under the Insurance Act and administered by Momentum Wealth (Pty) Ltd. The information in this article is for general information purposes and not intended to be an invitation to invest, professional advice or financial services under the Financial Advisory and Intermediary Services Act, 2002. Momentum Investments does not make any express or implied warranty about the accuracy of the information herein.

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