Living annuities remain a popular option for investors retiring, offering flexibility of income and the opportunity to remain invested in the markets whilst continuing to grow retirement capital. Two well-known risks inherent to a living annuity are:
- Investment risk – poor returns could deplete capital, resulting in the income drawdown exceeding the investment returns
- Longevity risk – the risk of outliving your capital.
Many investors have sufficient capital or appetite to accept these risks. Others may require more stability and certainty and can benefit from diversifying their living annuity income stream. A common approach is to secure a guaranteed income to take care of essential spending and needs, with a flexible income available for discretionary spending and to possibly leave a . Glacier now brings this to life in a single best-of-both options, solution.
One annuity, two components, many advantages
The FlexiGuarantee Life Annuity, underwritten by Sanlam Life Insurance Limited, brings the features of a life annuity and a living annuity together in a single solution. When transferring their living annuity capital to a FlexiGuarantee Life Annuity, investors allocate a portion to secure an annuity income for life. This income can also be extended to take care of dependants by adding a second life or guaranteed payment term.
The balance of the capital gives access to the benefits of a living annuity - including the opportunity for market growth through a wide range of investment options, flexibility to change income percentage taken annually and the opportunity to leave a capital .
Access to the solution is simplified with an integrated quote, single application form and investment confirmation. Investors receive a single, after-tax, monthly income.
The FlexiGuarantee Life Annuity is available from Monday, 25 May.
Read more about the benefits and investment process of the FlexiGuarantee Life Annuity.
| Considerations at retirement|
At retirement investors have the flexibility to allocate their retirement capital between various retirement income products. It is important to understand the differences between investing in a FlexiGuarantee Life Annuity, versus buying separate life and living annuities. Read more.
Familiarise yourself with the detail
To determine if the FlexiGuarantee Life Annuity is suitable for your clients, the product technical guide has all the details. Should you have successfully completed product-specific training for both the Glacier Living Annuity, as well as the Sanlam Life Annuity, you only need to fully acquaint yourself with the features and details in the technical guide, in order to be accredited for business on the FlexiGuarantee Life Annuity.
The technical guide is available on the Glacier intermediary web, under Forms & Brochures: Product Guides. You can also access the guide on SanPort, by clicking here.
Alternatively, for any further queries you may contact your Glacier representative.
Investment options crafted for income portfolios
Recognising how the economic and market landscape has changed, the Glacier Invest solutions are evolving. The management of the solutions will be more aligned with an absolute return philosophy and will focus on capital preservation. The Glacier Invest Solutions (Glacier Invest Living Annuity Wrap Funds) can bring even more stability to the market-linked component of the FlexiGuarantee Life Annuity. Read more
Improved client outcomes
At Glacier we aim to offer clients the best solutions to ensure they have a comfortable retirement. For clients who have already opted for a living annuity, the FlexiGurantee Life Annuity offers a great alternative.
- More income certainty with flexibility and
- More sustainable income and better capital preservation
- Single, simple solution