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SA's No 1 Insurance Blog

Saving for your retirement is a long-term strategy that could see you committing for 40-years plus. There is, however, just one glaring issue with a commitment that long into the future, right?  Nobody knows what life is going to throw at us tomorrow, let alone a week down the line, or even decades from now. It’s the risk of the unknown that inevitably leads to procrastination and we simply don’t act. We can’t ever recover those years, and it costs us millions in potential future retirement funding income.

What if you had the option of investing in a transparent, recurring-premium retirement solution that could easily adapt to accommodate changes in your lifestyle? The Optimal Retirement Annuity from Old Mutual is a retirement annuity that gives the customer the flexibility of being able to increase, decrease, or stop paying premiums without a penalty or reduction fee, while still enjoying the benefits of the product features.

 

This is what we like about the Optimal Retirement Annuity from Old Mutual:

The minimum monthly contributions can start from as little as R350 per month if Old Mutual funds are selected.

If you are in your late twenties or early thirties with a retirement horizon of 21 – 35 years, listen up for a second. You can invest as little as R350 per month into the Optimal Retirement Annuity. Considering a round of burgers with a soft drink for you and friends is going to set you back around R300, what is stopping you from a R10 per day commitment towards your future?

If your investment horizon is between 10 and 20 years, the minimum contribution is R500 per month if investing in Old Mutual funds and if you are investing for a period of 5 – 9 years, then you will need R2000 per month.

There are no penalties or reduction fees charged for reducing or stopping your premiums

Nobody has plans of starting a retirement annuity and then reducing or even stopping the contributions altogether. If you’ve decided to use the Optimal Retirement Annuity as your retirement vehicle, then you can be assured that there will be no penalties or reduced fees for making your policy “paid-up” levied against the fund value of your investment.

Automatic once off Investment Booster will pay back 2.5% of your fund value after year 5, and monthly boosters thereafter, which remain vested whether you continue your contributions or not.

There aren’t any free lunches anymore, and nowadays you don’t get anything for gratis! Imagine the growth these boosters will attract on the fund value of your retirement annuity.

Old Mutual will start boosting the fund value of your retirement annuity by the following amount annually (gets paid monthly) as follows:

Plan Year

Monthly Booster (% Of Fund Value Per Year)

Year 5

2.5% (Once-Off)

6 – 10 years

1%

11 – 15 years

1.25%

16 – 20 years

1.50%

21 – 25 years

1.75%

 

Who is this product suitable for?
  • The Optimal Retirement Annuity is primarily aimed at customers who are looking to save in a retirement solution that allows for a monthly contribution.
  • People who require peace of mind knowing that can adapt their retirement plan as their circumstances and life stages change.
  • Guys and gals who want the flexibility to increase their premiums when they can afford to or, in certain cases, restart paying their premiums. You can skip up to 12 premiums without having to pay them back if you paid the first 6 premiums.
  • Customers who want to benefit from Investment Boosters to increase their fund values.

What are you waiting for? The time is now.

If you would like to receive a quote, submit your details below and an authorised Old Mutual financial advisor will contact you.

Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider.

*Ts & Cs Apply


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