Bona Life Insurance, Botswana’s pioneering citizen-owned life insurance company has launched Motswako Hybrid Pension - a groundbreaking financial product that redefines retirement planning.
As the first of its kind in Botswana, this innovative solution blends the stability of a Conventional Annuity with the flexibility of a Living Annuity, offering retirees unparalleled security and control over their financial future. Bona Life Insurance Chief Executive Officer (CEO) Phatsimo Keakabetse explained during the launch of the product recently that the Motswako Hybrid Pension is designed to empower retirees by combining guaranteed income for life with the opportunity for investment growth.
Keakabetse also said the unique hybrid approach addresses critical retirement risks such as longevity, market volatility, inflation, and liquidity, ensuring a balanced and fulfilling retirement. With three carefully curated investment portfolios; African Alliance Botswana Liquidity Fund, Enhanced Yield Fund, and Value Fund - clients can tailor their investments to suit their risk appetite and financial goals.
“We are thrilled to introduce the Motswako Hybrid Pension, a product that reflects Bona Life’s commitment to innovation and citizen empowerment. This is more than a financial product; it’s a promise to Batswana that their retirement can be both secure and dynamic. By merging the best of both annuity worlds, we’re giving retirees the freedom to dream big while resting assured their future is protected,” said Keakabetse.
The Motswako Hybrid Pension tackles the most pressing challenges retirees face. Its Conventional Annuity component guarantees a steady income stream, mitigating longevity risk and ensuring financial stability regardless of lifespan.
Meanwhile, the Living Annuity portion allows for market-linked growth, addressing inflation risk and offering the potential to outpace rising costs. This dual structure also cushions against market risk, as the guaranteed income acts as a buffer during economic downturns.
For retirees concerned about liquidity or leaving a legacy, the Living Annuity provides flexible withdrawals and the ability to pass remaining funds to heirs. The product’s design also minimises withdrawal rate risk and sequence of returns risk, preserving investment balances for long-term growth.
“Our goal was to create a product that anticipates and resolves the uncertainties of retirement. With Motswako, retirees can enjoy peace of mind and the power of choice,” Keakabetse added.
Unlike traditional annuities, the Motswako Hybrid Pension offers a versatile solution that doesn’t force retirees to choose between security and flexibility. Key benefits include: Guaranteed Income for Life: The Conventional Annuity ensures a reliable income stream, safeguarding against outliving one’s savings; Investment Growth Potential: The Living Annuity allows for market-driven returns, helping retirees keep pace with inflation, Customizable Portfolios: Three distinct investment funds cater to varying risk profiles, from conservative to growth-oriented, Flexibility and Legacy: Retirees can access funds for unexpected needs and pass on remaining balances to loved ones, as well as Comprehensive Risk Mitigation: The hybrid structure addresses multiple retirement risks, offering a balanced approach to financial planning.
Founded in 2013, Bona Life Insurance is Botswana’s first indigenous broad-based citizen-owned life insurance company, with the Botswana Public Officers Pension Fund (BPOPF), valued at P108 billion, as its sole shareholder. This partnership underscores Bona Life’s financial strength and commitment to empowering Batswana. The company’s mission is to provide innovative, client-centric financial solutions that go beyond traditional insurance, fostering sustainable relationships with communities across Botswana.
“Bona Life is more than an insurer; we are a trusted partner in enabling dreams and aspirations of Batswana for their financial health and security. The Motswako Hybrid Pension embodies our vision of enabling dreams through financial solutions that reflect the unique needs of our people,” said Keakabetse.
The launch of the Motswako Hybrid Pension marks another milestone in Bona Life’s journey to transform the financial landscape of Botswana. By offering a product that blends security, flexibility, and growth, Bona Life is setting a new standard for retirement planning.
“This is a game-changer for retirees. With Motswako, we’re not just planning for retirement; we’re reimagining it,” Keakabetse concluded.
