Liberty Life has introduced a ‘Living Annuity’ product, which allows for individuals to reinvest their retirement savings to grow, and accords one to get income when they retire.
This product is available for people who are above 50 years of age, have a minimum of P300,000 to invest, which can be a combination of the amounts one has in several different retirement funds and which are combined when one retires. When one is a Botswana citizen, the income payments would be paid into any bank account that operates within the borders of the country.
Speaking during the launch recently, Liberty Life managing director Lulu Rasebotsa said the new product allows customers to balance priorities adding that it is designed in such a way that it complements the retirement plan.
“As you get older you often need to balance two priorities during retirement as one gets to desire a flexible yet controlled growth of their income and the need to ensure that there is enough funds to support one through the rest of their golden years,” she said.
According to Rasebotsa the living annuity product accords one to control their investment noting that one’s premiums can be invested in the available portfolios and one can choose what proportions are invested in each portfolio so that they are in line with the risk appetite. A customer can
“Liberty Life would also review the available portfolios from time-to-time just to stay abreast with the changes in the market,” she said.
“We may offer new portfolios or discontinue offering certain portfolios to ensure that the range is appropriate for the Botswana market,” she said.
Stanlib Botswana Managed Prudential Fund and Stanlib Botswana Money Market Fund currently offer Liberty Life’s portfolios.
Rasebotsa said the Living Annuity gives one an opportunity to choose their income, invest for growth, leave a legacy and also has added benefits. In addition she said an immediate expense benefit of P10,000 is paid within 48 hours of receiving a valid claim and all the claim documents being submitted.
She further noted that Living Annuity is an investment product where the individual bears the investment and longevity risk unlike the life annuity, which is a risk product.
“With the Living Annuity one is exposed to the investment risk and if one lives longer than expected, they are exposed to the longevity risk so that their income may not last as long as they live,” she said.