OLD MUTUAL WEALTH

LINKED RETIREMENT INCOME

OLD MUTUAL WEALTH
LINKED RETIREMENT INCOME
Old Mutual Wealth is an elite service offering brought to you by Old Mutual Investment Services (Pty) Ltd
and Old Mutual Life Assurance Company (South Africa) Ltd, Licensed Financial Services Providers
OVERVIEW
The Old Mutual Wealth Linked Retirement Income provides a market-linked
income from your retirement proceeds. As a exible living annuity,
providing you with investment choice, it enables you to adapt your
income annually, allowing you to balance your income and capital
preservation needs.
INVESTOR PROFILE
The Old Mutual Wealth Linked Retirement Income suits investors wanting
to structure a retirement benet as a exible income with the additional
benet of leaving the proceeds of your investment to your beneciaries
upon death. This investment vehicle does not cater for investors wanting
a guaranteed annuity for life.
FEATURES AND BENEFITS
Income options
Living annuities do not guarantee an income for life. You need to select
an income percentage that could sustain you for life. You may select
an annual income rate of between 2.5% and 17.5% (subject to current
limits set by legislation) of your investment value. This percentage may
be adjusted annually on the anniversary date of the investment contract.
Income may be paid monthly in arrears, quarterly, half-yearly or yearly
in advance. Income may be withdrawn from across all underlying
investment options, or a portion of the capital can be allocated to
specic funds, from which income is drawn.
A choice of underlying investment options
The underlying investment options represent a carefully selected range
which provides wide coverage across the investment spectrum.
This includes:
Specially designed investment strategies
The core propositions from leading South African asset managers
Single and multi-managed approaches
Specialist and multi-asset class options
Smoothed and guaranteed solutions
Please refer to the current platform fund list for more information.
Investment parameters
Investments must originate from an approved retirement fund. No
voluntary money may be accepted. Members retiring from provident
funds must ensure that the rules of the provident fund allow for the
purchase of a compulsory annuity, otherwise there could be adverse
tax consequences.
Switching exibility
You may switch between underlying investment options within the
Old Mutual Wealth Linked Retirement Income, subject to any disinvestment
restrictions that may apply to the investment option from which you
want to switch.
Additional investments
Additional investments are allowed as long as the money originates
from retirement funds.
Liquidity
Other than the annuity income, no disinvestments are allowed.
Loans
Not allowed.
Taxation
Your annuity income is taxed at your marginal income tax rate and based
on the total income you receive from all your Old Mutual annuities.
Outright cessions
Not allowed.
Security cessions
Not allowed.
Estate planning
You may nominate natural persons or trusts as beneciaries of your
investment value after your death.
Insolvency protection
In terms of current legislation, your benet is protected in the living
annuity should you become insolvent.
Ownership
The underlying assets are owned by Old Mutual Life Assurance Company
(South Africa) Ltd.
Term
This contract is for life. On death, the remaining benet may be paid
to your beneciaries as an annuity or it can be commuted (i.e. the
income can be exchanged for a cash lump sum).
Governing legislation
The Old Mutual Wealth Retirement Income is regulated by various laws,
including the Long-term Insurance Act and the Financial Advisory and
Intermediary Services Act and the Income Tax Act. The underlying unit
trust funds are regulated by the Collective Investment Schemes Control Act.
Disclaimers:
This guide has been compiled as an information document and is based on information available. Old Mutual Wealth (Pty) Limited, Old Mutual Investment Services (OMIS) (Pty) Ltd and/or Old Mutual Life Assurance Company
(South Africa) Limited do not accept liability for any loss, damage or expense that may be incurred as a direct or an indirect consequence of reliance placed upon this guide.
For unit trust funds only:
Unit trusts are generally medium- to long-term investments. The value of the units may go down as well as up and past performance is not necessarily a guide to the future. Unit trusts are traded at ruling prices. A schedule of fees
and charges is available on request from the management company. Forward pricing is used. In the case of Money Market Funds, a constant unit price will be maintained.
Other funds:
These are generally medium- to long-term investments. The value of the units may go down as well as up and past performance is not necessarily a guide to future performance.
Old Mutual Investment Services (OMIS) (Pty) Ltd is a member of the Old Mutual Group and is a licensed Administrative Financial Services Provider.
Mutualpark, Jan Smuts Drive, Pinelands 7405. PO Box 207, Cape Town 8000. Tel 0860 999 199, Fax 0860 999 197.