Planning for retirement is one of many things that needs serious scrutiny. There are a number of things that you need to consider before choosing a retirement product. Many choose a combination of retirement products so that they can cope financially during retirement.
When choosing a retirement product, you need to consider the following:
- Your desired living income at retirement,
- How often you want to withdraw from your retirement account,
- The maximum amount that you can put towards a retirement product,
- Years left to retirement, and
- Retirement Products that you are willing to invest in.
From such considerations, you will be able to make sound investment decisions for your retirement. The aim of investing for retirement is to maintain your current lifestyle while looking at equaling or beating the inflation rate. This means that you will need to save most of your income and in many cases, you need to save around 25% of your current income.
With the above considerations made, it will now be easier to invest with Assupol. Assupol has a number of retirement products to suit the needs of different retirees. It can provide you with a living annuity, a lump sum payout, or a combination of both.
Assupol Retirement Solutions
Assupol has 3 retirement solutions for anyone that wants to invest in their future. The Assupol Retirement solutions include:
- The Carefree Life Retirement Annuity is more suitable when you are planning to save monthly for retirement,
- Assupol’s Preservation Funds allows you to preserve your retirement savings from another retirement fund when you switch jobs, and
- The Ultimate Retirement Income 4Life guarantees a monthly income for life.
In this section we will discuss all the 3 retirement solutions that are offered by Assupol.
The Carefree Life Retirement Annuity
The Carefree Life Retirement Annuity from Assupol is a retirement plan that allows for members to contribute monthly premiums or make a once-off payment to the account. Those that want to pay monthly premiums can start from R180.00 per month.
Assupol allows investors to choose from a number of funds to invest in. The investment funds available are from third-party mutual fund management companies and unit trusts. Before you invest your money into a fund, speak to a financial advisor to guide you especially if you don’t have any financial mathematics or management background.
The Carefree Life Retirement Annuity policy highlights
- Clients get to choose the investment fund that suits their individual risk profile. Investment funds available range from low to high risk.
- Money is available from your 55th birthday which is recognized as retirement age in South African.
- Should you be disabled before the age of 55, your money will be available upon suffering a disability.
- You can add disability benefits so that you get covered for a disability should you become disabled.
- Creditors won’t be able to attach your retirement savings since they are protected by Assupol.
- Monthly premiums can help reduce your income tax payments since retirement savings are deducted for income tax purposes.
- Transfer your retirement savings tax-free, from an existing retirement fund
The Ultimate Retirement Income 4life
Having consistent income at retirement is crucial especially if you are used to a certain lifestyle. The Ultimate Retirement Income 4life by Assupol helps clients to maintain their lifestyle throughout retirement. This policy is for those that are over the age of 55 or older.
With the Ultimate Retirement Income 4life policy, Assupol takes the investment risk, therefore, as an investor your capital is guaranteed. Guarantee of your principal investment can be up to 100%.
By living a longer life, you won’t risk having your living income getting exhausted at any point. Through the rewirement feature, the Ultimate Retirement Income 4life policy ensures that your living income increases relative to your needs. The policy takes into account inflation.
The Ultimate Retirement Income 4life policy highlights
- Clients get guaranteed income for life and with rewirement they are able to sustain their lifestyle throughout the cause of their lives.
- The minimum entry age is 55 years and there is no maximum age to join the policy.
- The Ultimate Retirement Income 4life requires a minimum investment premium of R50 000.
- Policy may not be ceded or used as security for loans.
- Once the policy has started, it cannot be cancelled or changed.
- Should the policy holder die, their spouse or children can continue to receive income for a limited period.
- Can take the capital protection to ensure that your loved ones receive the total capital invested upon death.
The Assupol Preservation Fund
Jobs may not be secure as we may think, therefore, should you lose your job because of being retrenched, dismissed or by resignation, it is always wise to save up your payout from your employer. The Assupol Preservation Fund helps those that are dismissed, retrenched or resigned from their duty to preserve their payout.
The Assupol Preservation Fund comes with two options to choose from. Options include the Assupol Pension Preservation Fund and the Assupol Provident Preservation Fund. These funds can be used to safeguard retirement savings when members change jobs, get retrenched or if they are no longer a member of their employer’s pension or Provident fund.
The Assupol Preservation Fund policy highlights
- Your retirement savings can stay invested in the market with uninterrupted growth
- You choose the investment fund that suits your individual risk profile
- You cannot make additional contributions
- Your retirement savings won’t be taxed when you transfer them to the preservation fund but will be taxed when you retire
- You can draw from the preservation fund once before retirement if you really need cash, but this money will be taxed
- Your money will be available to you from your 55th birthday, or earlier if you become disabled
- Your retirement savings are protected against creditors
The Assupol Retirement Products provide a safety net for retirees and help those that are still employed to plan for their retirement. Different retirement packages are there to choose from and are also affordable.
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