What is OptiSelect?OptiSelect is a retirement annuity product that provides you with regular pension payments in exchange for a lump sum payment or once-off investment. This would typically come from the two-thirds benefit accumulated in your pre-retirement savings vehicle such as your retirement annuity or pension fund.
You can invest your retirement savings in any one or a combination of the following annuity products:
- Level Annuity: provides you with a guaranteed monthly pension payment that remains level
- Escalating Annuity: provides a guaranteed monthly pension payment that escalates annually at a guaranteed rate
- Select Annuity: provides a guaranteed monthly pension payment that increases through annual bonuses declared
- Living Annuity: provides a monthly pension payment that depends on the income level chosen by you. Income levels are not guaranteed, but depend on the performance of the underlying investments which you also get to choose
OptiSelect is for members of retirement or pension funds who are at retirement age. In Namibia, if you are a member of a pension fund, you must put at least two-thirds of the capital (money) you have built up in that fund into a pension annuity.
OptiSelect gives you:
- A cost-effective way to secure a guaranteed monthly pension for the rest of your life;
- A pension income that will never decrease and that offers annual increases to help combat the effects of inflation;
- Increases, that once declared, are guaranteed for life;
- The peace of mind that comes from knowing that your retirement fund trustees endorse your annuity; and
- The security of having your pension managed by Namibia’s market leader in annuities, Old Mutual.
- Capital charge: 1.5% p.a.
- Investment management fee: approximately 0.7% to 0.8% (incl. VAT) of assets per year. This could vary slightly depending on asset allocation.
- Administration fee: upfront and renewal fees depend on the chosen annuity specifics. These are built into the upfront premium.
- If the Old Mutual Fund Select Annuity sounds like it could be a good way for you to secure your retirement income for life, feel free to request a quote by contacting Old Mutual Corporate at 061 299 3548/3351/3538.