Agile Retirement Range Guarantees Income

Agile Retirement Range
Know today exactly what you will retire on. Guaranteed.
When it comes to your income in retirement, we know you
The Agile Retirement Range gives you a guaranteed income
want answers not estimates.
in retirement and the ability to invest in multiple portfolios

according to your retirement strategy. No other retirement
Thats why weve designed the Agile Retirement Range, South
products give you the flexibility of competitive investment
Africas first and only collection of retirement products*
returns and risk-free certainty, turning retirement planning
that let you know today exactly what your income will be in
into retirement knowing.
retirement regardless of how the markets perform.
Agile allows you to invest in portfolios that give you the perfect balance
of investment returns and certainty, today and in retirement.
* Retirement Annuity and Preserver products
Investments toward your retirement savings are split between various portfolios

How it works
AGILE RETIREMENT RANGE
Retirement Annuity | Pension Preserver | Provident Preserver
The Agile Retirement Range allows you to invest in portfolios that give
you the perfect balance of investment returns and income certainty. It
is made up of three distinctive retirement products.
RETIREMENT ANNUITY
A Retirement Annuity is a tax
effective retirement investment
which is designed primarily for
individuals who want to save
additional amounts outside of any
pension or provident funds that they
may participate in.
At retirement, a Retirement Annuity
allows you to take up to one third as
a lump sum, subject to any applicable
tax. The remaining amount must be
used to buy a taxable annuity*, which
will allow you to receive an income
for life.
PENSION PRESERVER
PROVIDENT PRESERVER
OTHER INVESTMENT PORTFOLIOS
EXACT INCOME FUND
ALLOCATED FOR GROWTH
ALLOCATED FOR GUARANTEED INCOME
This portion of your money is

allocated to investment portfolios
that you have selected and does not
result in any level of guaranteed
income.
This portion of your money

contributes toward guaranteeing
a certain level of income in
retirement.
Employers sometimes offer their staff the benefit of saving for their retirement. This is
usually done by enrolling in either a provident or pension fund. A portion of your salary
is then saved in this fund every month for your retirement. There are certain rules about
how and when you can access and use the money.
If you are thinking of leaving your job, both of these products can assist you in preserving
your existing investment up until retirement. These products also allow you to withdraw
a portion of or your full investment before retirement, subject to relevant legislation and
applicable tax.
At retirement, the Pension Preserver
allows you to take up to one third as a lump
sum, subject to any applicable tax. The
remaining amount must be used to buy a
taxable annuity*, which will allow you to
receive an income for life.
At retirement, the Provident Preserver

allows you to take your full investment
amount as a lump sum, subject to
any applicable tax. Alternatively, you
can take it as a taxable annuity or a
combination of both.
By having a secure portion of

income in the Exact Income Fund, it
may free you up to look for more
growth opportunities in other
investment portfolios.
This can be used as a foundation for

building your retirement income.
You can choose from a range of

investment portfolios based on the
risk you're willing to take.
It guarantees you the amount of

money you will receive in
retirement.
* An annuity is an insurance contract which pays you a regular income.
An investment in the Agile Retirement Range will allow you to split your money between the Exact Income Fund and various
other investment portfolios depending on the level of certainty or growth you are looking for. Currently the growth on your
investment leading up to retirement accumulates tax-free. When you retire youll be taxed in accordance with applicable
legislation.
The Agile Retirement Range should be used to complement your overall retirement plan, rather than being the only aspect of
your retirement strategy.
Only investments in the Exact Income Fund will contribute toward guaranteeing you a certain
level of income. There are also limits to how much you can invest in the Exact Income Fund.
Exact Income Fund

The Exact Income Fund is a one-of-a-kind portfolio that guarantees exactly what your income will be in retirement from the
moment you invest. Each time you contribute to the fund, you ensure more guaranteed regular monthly income. If you are a
young investor looking for aggressive portfolio growth, you may want to commit less of your retirement savings to the Exact
Income Fund. Older, more risk-averse investors would potentially invest a higher portion in the Exact Income Fund.
Other Investment Portfolios
In addition to the Exact Income Fund, you can choose from 15 of the top asset management companies with access to over 100
investment portfolios. As your needs change, you will also be able to adjust your portfolio mix on an ongoing basis at no cost.
Split your investment between the income certainty and investment

growth that you are looking for leading up to retirement.
Illustrative example
Your retirement journey
100%
Below age 35
Age 40 - 44
Age 45 - 49
Age 50 - 54
allocated to
your choice of
portfolios
97.5%
allocated to
your choice of
portfolios
95%
allocated to
your choice of
portfolios
80%
allocated to
your choice of
portfolios
60%
allocated to
your choice of
portfolios
50%
allocated to
your choice of
portfolios
50%
40%
20%
0%
Age 55 and above
Your choice of portfolios aims to give you retirement investment growth
100%
Your investment split by %
Age 35 - 39
2.5%
5%
allocated to the
Exact Income
Fund
allocated to the
Exact Income
Fund
allocated to the
Exact Income
Fund
The Exact Income Fund gives you retirement income certainty
Speak to a financial adviser or broker to identify the ideal age for you to participate in the Exact Income Fund.
What the Agile Retirement Range

can do for you.
Our Agile Retirement Range affords you a host of benefits to ensure
a balance between income certainty and investment growth.
Customised Retirement Planning

Choose to split your investment amounts between the Exact Income Fund and other portfolios
depending on the level of income certainty or investment growth you are looking for.
Flexible Payment Methods

Invest through regular debit orders, lump sum investments or a combination of the two. You can even
stop and re-start your investments at any time at no cost.
South Africas Top Asset Managers

Choose from over 100 of South Africas top-rated investment portfolios from 15 of the top asset
management companies in the country.
Agile is for you if:

You are looking for a way to save for your retirement.
You are looking to guarantee your income in retirement.
Low Platform Fees

The Exact Income Fund has no platform or portfolio fees. However, your investment in other portfolios
will charge a platform fee of 0.3% per annum and the applicable portfolio management fee. Both fees
are calculated as a percentage of the investment value and are deducted monthly.
You are looking for a low-cost and flexible retirement solution.

You are looking for portfolio choice.
Agile is not for you if:
You need unrestricted access to your investment before retirement.
You are not prepared to actively monitor your products performance
Tax Benefits
The Agile Retirement Range provides you with a number of tax benefits.
with your broker or financial adviser on an ongoing basis.
You dont think you need an income in retirement.
The Exact Income Fund

The only portfolio that guarantees your income in retirement
Before Liberty developed the Exact Income Fund, no
of R13.50 for every R100.00 they invested. By 2005, market
one could tell you with any certainty what your monthly
fluctuations had resulted in them only receiving R7.00
retirement income would be until the day you actually retired.
interest for every R100.00 they had invested. This means

that had you planned your retirement in 2002 in order to
For example, a person who retired in 2002 would have
retire in 2005, you may have received only half of what you
received 13.5% interest on their savings based on the market
were expecting.
at the time. This meant that they could expect to get interest
Dont let the markets ruin your retirement

13.5%
12%
Interest
Interest
7%
Interest
4.5%
Interest
12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009
12/31/2010
12/31/2011
12/31/2012
12/31/2013
12/31/2014
Source: Liberty
The Exact Income Fund is able to guarantee a portion of your retirement income today. This gives you a yardstick with which to
track your retirement goals, turning retirement planning into retirement knowing. It is important to understand that the income
you have secured for your retirement does not grow in line with inflation leading up to retirement.
Having already established a solid foundation for your monthly retirement income with the Exact Income Fund, you can take
advantage of investment growth opportunities with the remaining portion of your investment.
10
What the Exact Income Fund

can do for you.
Changes in interest rates impact the amount of income you can buy
in retirement. Guarantee your retirement income today with the
Exact Income Fund.
Guaranteed Income
The Exact Income Fund guarantees a monthly retirement income. You can be certain of the income you will
receive in retirement depending on how much you put away in the Exact Income Fund.

Lasting Retirement Income

With breakthroughs in medical science, people are living to their 80s, 90s and even their 100s. The
Exact Income Fund can guarantee your retirement income.
The Exact Income Fund is for you:

Keep up with Rising Costs
The cost of living and healthcare are on the rise. By regularly reviewing and adjusting your investments
into the Exact Income Fund, you can manage the impacts of inflating costs.
If you want to guarantee a portion of your income in retirement, today.

If you are looking for income certainty.
If you want to diversify your retirement investments by achieving a balance

between income certainty versus achieving investment growth.
The Exact Income Fund is not for you:

Manage Market Uncertainty
11
If you are worried that the value of the income you receive today will be

insufficient to maintain your retirement lifestyle.
Economic, social and political events not only affect the markets but your retirement income as well.
If you prefer investment growth over income certainty.
The Exact Income Fund will help you manage these risks by providing you with a guaranteed income
If you are not concerned about living too long.
that remains unaffected by external factors.
If you have any serious medical conditions.
12
Q&A
Exact Income Fund
How do I compare the Exact Income Fund to
Will guaranteeing my retirement income be expensive?
other portfolios?
No. The Exact Income Fund has a built-in income guarantee
To make it easy, we have calculated what we call an Equivalent
included in the income purchased. You do not pay anything
Portfolio Return. This is the level of return another portfolio
extra for this.
must give you to match the outcome of the Exact Income

Fund. You will be able to use the Equivalent Portfolio Return
Your investments in some of the other investment portfolios
to compare the returns of the Exact Income Fund with other
offer traditional investment guarantees. If you select an
investment portfolios. When investing in other investment
investment portfolio and include an investment guarantee, an
portfolios, markets and interest rates fluctuate and may, or may
additional charge will apply. Speak to your financial adviser or
not, move in your favour. This will affect the monthly income
broker regarding the options that are available to you.
that you will be able to purchase when you retire. With the Exact
Income Fund, this uncertainty is removed.
the value of your investment accordingly. You should also
If you choose to receive your retirement income through
note that the investment value that you will receive when you
another type of guaranteed income annuity from Liberty,
exit could be significantly less or more than the amount you
the amount you will receive in income will be different. If you
originally invested. Our guarantee to you is calculated based
change the way the income is paid to you, the guarantee you
on your commitment to stay invested in the Exact Income
have in the Exact Income Fund will also change to reflect this.
Fund until the benefits become due to you in retirement. The

investment value you receive is influenced by many factors,
including:

initial guarantee is based on you remaining invested in

the Exact Income Fund for the full term. If you decide to
exit the Exact Income Fund before the benefits become
due to you then we can no longer achieve the expected
return we initially secured.

Interest rates may change from the time your investment

was made (if interest rates drop on average, your value
How much is this going to cost me in
would increase; conversely, if interest rates rise on
administration fees?
The Exact Income Fund has no platform or portfolio fees.
doing a comparison with other investment portfolios
However, your investment in other portfolios will charge a
you to live, the more your Exact Income Fund will
using the Equivalent Portfolio Return:
platform fee of 0.3% per annum and the applicable portfolio
be worth).
Firstly, we guarantee your income in retirement today.
management fee. Both fees are calculated as a percentage
Secondly, as it is not possible to predict what the annuity
of the investment value and are deducted monthly.
If people arent living significantly longer when you retire, then

you will get the income youve built up in the Exact Income
Fund for life from your elected retirement date. Things can
change over time and in the unlikely event that the average
65-year old Liberty annuitant is expected to live past the age
of 100 for men and 104 for women (currently 85 for men and
89 for women) when you retire, then the following income
options will be made available to you:

How long we expect you to live to (the longer we expect
You can delay your retirement by a year or two. We will

let you know the new retirement age needed to ensure
average, your value would decrease).
There are two aspects that must be considered when
rates will be at your selected retirement date with
13
The length of time your money is invested with us. Our
Is my retirement income guaranteed for life?
your original guaranteed income for life.

You can retire at your selected retirement date and

accept a slightly lower income payable for life.
You can retire at your selected retirement date and keep
What if I change my retirement date?
the same level of income but the income will only be paid
If you want to change your selected retirement date, the
until the age of 100 for men and 104 for women, after
which it will reduce.
confidence, weve assumed todays annuity rates in
How many times can I switch between portfolios?
guaranteed income provided by the Exact Income Fund will
calculating the Equivalent Portfolio Return.
Your investment in the Exact Income Fund can be switched
be adjusted accordingly based on market rates applicable at
to another portfolio. However you should approach this with
that time.
You must remember that these adjustment options will only

apply if there is an unexpected and dramatic improvement in
Does investing in the Exact Income Fund take
caution. If you switch out before retirement then you will
inflation into account?
need to go through an underwriting process and will lose your
When I retire, am I able to change the way my income is
No, the Exact Income Fund does not take inflation into account.
guarantee on the monthly amount that is payable in retirement.
paid from the Exact Income Fund?
The income that you will receive in retirement will be calculated
It is better to gradually build up your investment in this portfolio
When you retire, the Exact Income Fund will pay you a
When I retire, what happens to the money not invested
in todays Rand value. You will need to look at and potentially
over time, rather than switch in and out regularly. When it
guaranteed level of income in retirement. If you would like to
in the Exact Income Fund?
adjust your retirement investments regularly to see if you are
comes to the other portfolios that you have selected, you can
make any changes to how your income is paid out, such as
If you are not 100% invested in the Exact Income Fund at
still on track to meet your retirement goals.
switch between them whenever you want, at no cost.
including your spouse or increasing the income you receive
retirement, you can then use the remaining portion of your
every year, you will have the option to convert your current
investment to buy whatever annuity is available at the time.
annuity into another type of annuity. If you dont use your
This annuity will be in addition to the annuity you receive via
investment from the Exact Income Fund to buy a guaranteed
the Exact Income Fund. This second annuity is subject to the
income from Liberty, then you will need to go through the
annuity rate being offered at the time.
How often should I check the performance of
What happens if I exit or access my money in the Exact
my portfolios?
Income Fund earlier?
As with any investment, periodic reviews and regular monitoring
If you decide to exit the Exact Income Fund or access your
are required to make sure the investment is still suitable to your
money before the benefits become due to you, you will have to
needs. You should review your investment at least once a year.
go through an underwriting process and we will need to adjust
life expectancy.
underwriting process. The word annuity refers to a

regular income.
14
Q&A
Agile Retirement Annuity
When you invest money in the Agile Retirement Annuity, you will become a member of the Lifestyle Retirement
of other growth investment opportunities with the remaining
What are the tax benefits for the Agile Retirement
Annuity Fund, a registered and approved Retirement Annuity fund. Although the Fund purchases the Agile
portion of your investment.
Annuity?
According to legislation, you can benefit from the
Retirement Annuity on your behalf and provides you with retirement benefits when you retire, you will still have the
freedom to choose which portfolios you want the Fund to invest in on your behalf. These retirement benefits are the
Will I be penalised for changing the amount I invest in my
investment value that you are entitled to at retirement.
Agile Retirement Annuity?

You have total flexibility when investing. You can stop, start or
What is the minimum I can invest?
Other investment portfolios
You can invest a minimum of R15 000 as a lump sum and / or
Your investment in the other investment portfolios allows
at least R1 000 per month.
you to take up to one third of your investment value as a

lump sum subject to applicable tax. The remaining money
How often can I invest?
must be used to buy an annuity for life.
You can add to your investment as often as you like.

If your investment comprises of any vested benefits* originally
Can I get tax deductions for amounts I invested?
accrued from a provident fund or Provident Preservation
Your invested amounts are tax deductible subject to
Fund, the full annuity in relation to that vested benefit may be
legislative limits.
taken as a lump sum at retirement. Your ability to access any

vested benefits will depend on legislation.
Can I access my benefit before retirement?

You may retire before the age of 55, if you can prove to the
* Vested benefits are the investments youve made to any
Board of Management of the Fund that your retirement
provident fund or Provident Preservation Fund prior to a
is as a result of ill health. Legislation also allows certain
specific date prescribed by legislation and on which there is no
withdrawals from the Fund before the age of 55. You
restriction on the proportion of the investment which may be
may withdraw from the Fund if it is related to divorce,
taken as a lump sum at retirement.
maintenance orders or emigration / expatriation or where

the total investment value in the Fund is less than R7 000.
Im already saving via my company pension and

provident fund. Do I need the Agile Retirement Annuity?
What happens when I retire?
Even if your company provides you with a pension or
provident fund, this may not be enough to retire comfortably.
As mentioned above, your investment in the Exact Income
You can use the Agile Retirement Annuity to supplement your
Fund will pay you a guaranteed level of income in retirement.
retirement investments and get additional tax advantages.
This income is also subject to the applicable tax.
Agiles Exact Income Fund creates a solid foundation for your

monthly retirement income, allowing you to take advantage
15
following tax advantages:

Can I use my Agile Retirement Annuity as collateral?

No, you cant.
You can deduct your investments to your Retirement

Annuity from your taxable income up to a specified limit.
invest extra at any time, and at no cost.
The investment returns earned in a Retirement Annuity

are not currently taxed.
At retirement, the lump sum benefit is tax-free up to a

specified limit. However your retirement income is taxed
Can I transfer ownership?

No, you cant.
as income.

All limits referred to above are specified annually for the

tax year.
What happens if I get divorced?

If you get divorced, Liberty will act in accordance with an
Can I cancel my Agile Retirement Annuity?
enforceable order issued by the court. This may mean a
No, you cant. You can, however, transfer your Retirement
portion of your retirement investments will be paid out to
Annuity to another approved Retirement Annuity fund. If
your ex-spouse. This may impact the amount of income
you decide to transfer your Retirement Annuity, you may
you can draw in retirement and will have an impact on the
receive less than what you invested on day one. This is due to
guaranteed income in the Exact Income Fund.
changes in the investment market, depending on when you

decide to transfer your investment.
What happens to my investment should I pass away?

Currently, your retirement benefits do not fall into your estate.
Can I phase in my investment?
The Board of Management of the Fund has a legal duty to
Phasing in your investment means you have the option to pay
ensure that your dependants / beneficiaries receive all or a
a lump sum and request for Liberty to transfer this money into
portion of the benefits according to legislative requirements.
the market over a period of time. You will not be able to phase
Your dependants / beneficiaries will receive the value of your
into the Exact Income Fund, however phasing your investment
investment in the Exact Income Fund and your other selected
in your other portfolios is allowed.
portfolios at that point in time.

Who can take out an Agile Retirement Annuity?
Individuals who want to save for their retirement.
16
Q&A
Agile Provident / Pension
Preserver Fund
If you want to preserve the money youve saved through your employer provident or pension fund when you leave
rules of retirement. The right to access non-vested benefits
Can I cancel the investment?
your employer, you can become a member and transfer your money to the Lifestyle Retirement Preserver Provident
depends on legislation.
No, but you are allowed one withdrawal on all or a portion
or Pension Fund. This transfer will be done on a tax-free basis as long as the transfer is not from a pension fund to
a provident fund. Although the Fund buys the Agile Provident/Pension Preserver on your behalf and allows you to
* Vested benefits are the investments youve made to any
withdrawal tax deduction. You will also be able to transfer to
preserve your retirement benefits, you will still have the freedom to choose the portfolios you want the Fund to
provident fund or Provident Preservation Fund prior to a
another approved retirement fund. If you decide to transfer
invest in on your behalf.
specific date prescribed by legislation and on which there is no
your investment, you may receive less than what you
restriction on the proportion of the investment which may be
invested on day one. This is due to changes in the investment
taken as a lump sum at retirement.
market, depending on when you decide to transfer
What is the minimum I can contribute?
You will need at least R150 000 on day one.
Your investment in your other investment portfolios
your investment.
will allow you to take all of your investment value as a
Can I transfer ownership of my investment?
How often can I contribute?
taxable lump sum less any tax; or as a taxable annuity; or a
No, you cant.
You can invest an additional amount in the preserver funds
combination of these two options.
Who can take out an Agile Provident/Pension

Fund Preserver?
What happens to my investment should I pass away?
Individuals who are transferring money from another
Pension Fund Preserver:
Currently, your retirement benefits do not fall into your
approved pension or provident fund.
estate. The Board of Management of the Fund has a legal
Can I access my benefit before retirement?
Similar to the Provident Preserver, your investment in the
duty to ensure that your dependants / beneficiaries receive
You can take all or a portion as your one allowable withdrawal
Exact Income Fund will pay you a guaranteed level of income
all or a portion of the benefits according to legislative
before age 55 subject to the tax per the specific tax tables for
in retirement.
requirements. Your dependants / beneficiaries will receive
as long as the money comes from the same pension fund or

provident fund.
lump sum withdrawals from retirement funds.
the value of your investment in the Exact Income Fund and

your other selected portfolios at that point in time.
You may also retire before the age of 55, if you can prove to
Your investment in the other investment portfolios will allow
the Board of Management of the Fund that your retirement
you to take up to one third of your investment value as a
What are the tax benefits of the Preservers?
is as a result of ill health. Legislation also allows certain
taxable lump sum. The remaining two thirds must be used to
withdrawals from the Fund before the age of 55, if the
provide you with a taxable annuity for life.
withdrawals are related to divorce or maintenance orders.
17
of your investment before age 55. This is subject to the
The investment growth in the Preservers is currently

tax-free.
At retirement, the lump sum benefit is tax-free up to
If the provident or pension preserver investments have any
a specified limit and the balance is subject to specific
What happens when I retire?
vested benefits* originally accrued from another retirement
tax tables for lump sums on retirement. However your
Provident Fund Preserver:
fund, you will still have access to these benefits at retirement.
monthly income will be taxed at normal tax rates.
How you will be able to access these benefits depends on
Your investment in the Exact Income Fund will pay you a
legislation. If the Investment has non-vested benefits from
All legislative limits referred to above are specified annually
guaranteed level of income in retirement.
another retirement fund, it will need to follow the normal
for each tax year.
18

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Agile Retirement Range

Know today exactly what you will retire on. Guaranteed.

When it comes to your income in retirement, we know you

The Agile Retirement Range gives you a guaranteed income

want answers not estimates.

in retirement and the ability to invest in multiple portfolios

Thats why weve designed the Agile Retirement Range, South

products give you the flexibility of competitive investment

Africas first and only collection of retirement products*

returns and risk-free certainty, turning retirement planning

into retirement knowing.

retirement regardless of how the markets perform.

of investment returns and certainty, today and in retirement.