Namibia
Your Dreams Don't Retire
Living Annuity gives you flexible income with investment growth, throughout retirement.
Why you should choose
the flexible Living Annuity
There are no hidden costs
All product charges are disclosed giving you peace of mind that you are dealing with the trusted brand of Liberty.
You can take flexible Living Annuity if:
- You are above 55 years old.
- You have a minimum retirement investment of N$150,000.00 available. This can be a combination of the amounts you have in several different retirement funds, which are combined when you retire.
Choose investment
You can choose from a wide range of unit trust portfolios, ranging from conservative to moderately aggressive. There is a payment-from-fund option that allows you to access funds when you need them.
Invest for Growth
You can switch between portfolios at any time if your investment needs change. Importantly, the first 5 switches within a calendar year are free of charge. Each year after the first 5 switches there will be a switch fee per switch.
Plan for your future
The investment remaining when you pass away can be left to your loved ones. You can also nominate beneficiaries to receive a regular income.
Choosing the correct income for you
With the flexible Living Annuity, you can choose a regular income of between 5% to 15% per year of your full investment value and allows you to select a wide range of investments in respect of the capital that will generate the annuity. The level of income you select is not guaranteed for the rest of your life.
| 2.50% | 5.00% | 7.50% | 10.00% | 12.50% | |
|---|---|---|---|---|---|
| Annual income rate selected at inception | 2.50% | 21 | 30 | 50 | 50+ |
| Annual income rate selected at inception | 5.00% | 11 | 14 | 19 | 22 |
| Annual income rate selected at inception | 7.50% | 6 | 8 | 9 | 13 |
| Annual income rate selected at inception | 10.00% | 4 | 5 | 6 | 7 |
| Annual income rate selected at inception | 12.50% | 3 | 3 | 3 | 4 |
| Annual income rate selected at inception | 15.00% | 2 | 3 | 3 | 3 |
| Annual income rate selected at inception | 17.50% | 1 | 1 | 1 | 1 |
This table is a general guideline and should be considered taking into account your financial situation and all other sources of income. It is an indicative guideline only, to assist you in making informed decisions in respect of your annuity.
Not sure how much income to draw?
Have a Liberty adviser walk you through the income options that match your retirement plan.
Growth & Sustainable Income
How your money is invested
Portfolio Selection
Your premiums are invested in available portfolios based on your risk appetite, ranging from conservative to moderately aggressive.
Switching Portfolios
You can switch between portfolios at any time if your investment needs change. The first 5 switches within a calendar year are free of charge.
Providers
Unit trusts from various companies are offered, including STANLIB Namibia, Allan Gray Namibia, Namibia Asset Management, M&G Investments, Ninety One Asset Management, and Old Mutual Namibia.
Managing Income and Aging
Shift to Conservative Portfolios
As you get older, the bulk of funds in aggressive portfolios is typically moved into more conservative ones, such as a Money Market portfolio, to reduce fluctuations.
Protection Against Volatility
This strategy avoids the need to sell units when portfolio prices are low and allows you to benefit from them when returns are high.
Living Annuity and Retirement
Ensuring Income for Life
The primary purpose of a flexible Living Annuity is to provide a sustainable income throughout your retirement.
Balancing Risk and Inflation
It is crucial to manage portfolios so that investment returns sustain your income and outpace inflation, while avoiding undue investment risk.
Professional Consultation
Investors are encouraged to actively manage and review their chosen portfolios periodically in consultation with a financial intermediary.
Understanding the difference between
A Life Annuity and A Living Annuity
Life Annuity
A Risk product where the insurance company carries the investment and longevity risk.
Key features
- Fixed income. Set amount at the start, may increase at a fixed rate.
- Income for life. Paid until you pass away.
- Guaranteed. The security of a guaranteed income.
Limitations
- No market upside. Your investment is used for income. You do not share in market gains.
- Nothing to leave. No investment remains for loved ones outside any guaranteed period.
Living Annuity
An investment product where you carry the investment and longevity risk.
Key features
- You choose your income. Pick the income amount each year, within a specified range.
- Grow your investment. If markets perform well, your total investment can keep growing.
- Lasting legacy. Whatever remains when you pass away goes to your loved ones.
Limitations
- Investment risk. Lower-than-planned returns mean lower income.
- Longevity risk. Live longer than expected and your income may run out.
Frequently asked questions
How do I apply for the flexible Living Annuity?
Review and sign the quotation provided by your intermediary (you have up to 45 days to accept). Your intermediary will help you complete the application form and facilitate the premium payment from your retirement fund. Choose your monthly income amount or percentage, plus your beneficiaries for the remaining investment value and the funeral cover benefit.
Can I adjust my income payments each year?
Yes, payments can be varied annually within legal limits.
Can I increase my income with additional premiums?
Yes, you can increase your income by making additional premium contributions to your Living Annuity investment.
What investment options are available?
A wide range, from conservative to aggressive portfolios, with leading providers including STANLIB Namibia, Allan Gray Namibia, Namibia Asset Management, M&G Investments, Ninety One Asset Management, and Old Mutual Namibia.
How many portfolio switches can I make annually?
Five free portfolio switches per year. After that a switch fee applies per additional switch.
Is there any additional coverage included?
Yes, N$10,000 funeral cover is included.
What happens if you pass away?
The remaining investment value in your Living Annuity will be paid to your nominated beneficiaries, leaving a lasting legacy for your loved ones.
How do I make my retirement as tax efficient as possible?
Consult with your financial intermediary to understand the tax implications and benefits of your Living Annuity, including how to structure your income withdrawals for optimal tax efficiency.
Ready to plan your retirement income?
Speak to a Liberty adviser. We'll call you back to map out your Living Annuity.