INVESTING FOR INCOME
The Liberty [Flexible Annuity] offers you the potential to manage and grow your wealth. It is designed for investors who want income and investment flexibility after retirement. You have access to world-class portfolios, whilst also being able to manage short-term changes in your income needs during your retirement.
The policy is made up of two benefits:
- One portion is a Living annuity benefit that offers the traditional workings of a living annuity. With its tax-efficient wrapper and flexible investment options, it allows single portfolio drawdowns, with low product costs.
- The other is optional and addresses the need to boost your income to a level higher than you would ordinarily attain. The income enhancer benefit can provide bonuses that help protect against longevity risk.
Invest from R75 000 or more.
Select up to seven professionally managed investment portfolios with optional performance guarantees, in accordance with an individually identified risk profile.
Income enhance benefit
This is an optional feature that gives you an added layer of security against running out of money. When retiring, commit a portion of your retirement savings to the income enhancer benefit. A bonus will be paid into the investment of all those who have committed a portion of their retirement savings. This bonus comes from the remaining portion committed from those who have died during the year.
This also means that in the event of your death, the remaining portion of your retirement savings in the income enhancer benefit will be shared with everyone else in the bonus pool.
The portion that you don't commit to the income enhancer benefit is paid to your nominated beneficiaries.
No tax is paid on the lump-sum transferred from the retirement fund prior to it being invested in the flexible annuity. Income tax is deductible on the annuity income. No tax is payable on the investment returns of the underlying investment portfolios.
Guaranteed Income Annuity
Financial certainty is difficult to come by in these economic times. The Liberty Guaranteed Income Annuity addresses this need and provides you with an easy way to guarantee a fixed, regular income for a certain period of time.
The Liberty Guaranteed Income Annuity has been designed to give maximum certainty of income, combined with features to suit your financial needs.
A Guaranteed Income Annuity can be purchased with money from a voluntary source. This is money that originates from the proceeds of any savings, other than retirement products.
Invest R12 500 or more per month.
The guarantee period can be selected anywhere from 5 to 20 years. The income you will receive is determined upfront, and Liberty commits to paying this for your selected guaranteed period. If, however, the annuitant dies within the guarantee period, payments will continue to be paid to the payee or nominated succeeding payee until the end of the guarantee period.
The income increases are not linked to any index or volatile investment markets but are guaranteed at the outset and therefore provide security and certainty.
Only the interest portion of the income will be taxable. No income tax is payable on the capital portion.
The Liberty [Life Annuity] has been designed to give maximum protection and certainty of income, combined with features to suit your financial needs.
A life annuity transfers the risk of outliving your money to Liberty. Liberty commits to providing peace of mind by paying your income in the event of your death. This can be under both a husband's and wife's name so both can receive an income.
A life annuity can be purchased with funds originating in one of two broad categories:
- A life annuity purchased with money from a compulsory source, which is money that must originate from the proceeds of various retirement products, such as the compulsory portion of a Retirement annuity, retirement preserver, pension or provident fund.
- A life annuity purchased with money from a voluntary source, which is money that originates from the proceeds of any savings other than from the above-mentioned retirement products.
The income increase you select is not linked to any index or volatile investment markets but is guaranteed at the outset and therefore provides security and certainty.
A life annuity is a tax-efficient vehicle, the benefits of which include the following:
- Upon retirement from a retirement annuity, pension or provident fund, no tax will be paid on the lump-sum amount transferred from the retirement fund to the life annuity.
- No income tax is paid on the capital portion of the income on voluntary purchased annuities.
Living Annuities allow you, as a retiree, to invest in a selection of funds so that your capital generates an income, and adjust your retirement income each year, within prescribed withdrawal rate limits (2.5% to 17.5%), to keep up with Inflation. Most retirees shy away from top performing funds because while these funds allow you to invest for more growth they also come with more risk. Bold Living Annuity gives you the freedom to invest in your choice of top performing funds while reducing your risk with a Liberty return guarantee.
WHY INVEST WITH LIBERTY BOLD?
- Bold Living Annuity allows the freedom to invest in SA's top funds with a Liberty return guarantee.
- On the first day when your return is zero - the most your return can drop is 20%.
- Your return guarantee protects 80% of your total aggregate return.
- Over time your total aggregate return increases and reaches new highs at any quarter then the Liberty return guarantee level increases.
- The Liberty return guarantee runs for five years and applies to income withdrawals and your returns after five years.
- You can choose from 190 funds, including offshore and tracker funds, managed by 30 investment managers.
- You can switch at any time without losing or affecting your Liberty return guarantee.
- You may remove the guarantee at any time.
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