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 Income may be withdrawn from across all underlying investment options, or a portion of the capital can be allocated to specic funds, from which income is drawn.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.
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