There are too many things that you can do with your retirement savings payout like buying a boat or going on a month-long vacation. Life doesn’t stop when you retire and losing your regular income can impact your financial status in the future.
You need to invest some or all of your retirement savings payout into a retirement income plan. A retirement income comes with many benefits that include but is not limited to:
- a guaranteed or limited guaranteed of income
- receiving a regular income
- choosing the periods you want to receive income
- retirement income that is not attached to taxes
- your money is safe and should you die, your beneficiaries can inherit the remaining balance, and more.
Metropolitan has retirement income packages that work differently and aim at catering to different income needs of retirees. The plans available start from R15,000.00 which is paid as a single lump sum.
Plans available offer regular income to account holders at retirement. You can choose to also get a flexible income that allows account holders to manage the plan at their own discretion.
Metropolitan Retirement Income Plans
The Metropolitan Retirement Income Plans help retirees maintain their lives while enjoying retirement. They allow individuals to convert their retirement savings into retirement income. Retirement Income enables a steady flow of income at retirement that sometimes comes with guarantees.
Those with money to invest and who are retired can take advantage of the Metropolitan Retirement Income plan. There are 3 plans that you can take advantage of which include Life Annuity, Capital Preservation, and Ultimate Retirement plan.
We cover each retirement income package in detail below.
Metropolitan Retirement Income Plans: Life Annuity Retirement Income Plan
A Life Annuity retirement plan is an annuity plan that guarantees an income for life to its members. Income that is guaranteed is regular, meaning the plan holder receives income at equal intervals.
Plan holders get to choose how often they receive their income. Income can be received monthly, quarterly, bi-annually, or yearly. With this approach, you get to have income as frequently as you want, which gives you the opportunity to plan better.
Income from the Life Annuity remains the same for a lifetime. However, there may be yearly increases to your income so that inflation doesn’t affect your income. You will have the same buying power in the future.
Plan holders cannot add beneficiaries to the plan. This means that your loved ones will not have any further benefit to your life annuity should you pass away. Nor will any of your loved ones take over the plan by making payments.
The plan requires a minimum lump sum payment of R15,000.00. There is no maximum amount curb on the life annuity plan, therefore, any amount above R15,000.00 can be invested.
Capital Preservation Retirement Income Plan
Capital Preservation is a retirement income plan from Metropolitan that guarantees a regular income for life. The plan lets plan holders choose the frequency of income they will receive. The frequency of income on the Capital Preservation plan is either monthly, quarterly, semi-annually, or yearly.
Plan holders also get to choose the income that they want to earn be it yearly, quarterly, monthly, or semi-annually. Your desired income will determine how much you should invest in your retirement. Younger retirees will invest less as compared to older retirees, for the same amount of income in retirement. Hence, it is always advisable to convert your savings earlier for retirement.
Beneficiaries can be added to the Capital Preservation plan. Beneficiaries will receive income with the Capital Preservation plan should you pass away.
The minimum investment in the Capital Preservation plan is R15,000.00. There is no maximum amount curb to the plan, therefore, investors can invest any amount from R15,000.00. You can choose to boost your premiums by making future cash injections into your plan.
Metropolitan Retirement Income Plans: Ultimate Retirement Income Plan
Ultimate Retirement is a retirement income plan that offers flexible income at retirement. The Ultimate retirement plan offers regular income that the plan holder can customise according to their retirement needs. Plan holders can choose to receive income monthly, quarterly, bi-annually, or yearly.
The Ultimate Retirement plan doesn’t offer any guaranteed income. As an investor, you can lose some or all of the money that you have invested into this plan. This is because of the level of flexibility that the account offers. You can manage your own money as a member of the Ultimate Retirement plan unlike any other retirement income plan available.
The plan allows you to choose the amount that you want to receive and this amount remains the same over time. You will receive the same amount of income until the income on the plan gets exhausted because you cannot boost your income. Boosting of income is not allowed in the Ultimate Retirement plan.
The Ultimate Retirement Income Plan comes at a hefty minimum investment requirement of R250,000.00 or more. There are no limits to how much money you can invest into the Ultimate retirement plan.
As a plan holder, you can list beneficiaries to your plan so as to direct where the leftover cash goes when you pass away. Beneficiaries you choose can be anyone that you want to benefit from the plan when you die.
Conclusion
The Metropolitan Retirement Income Plans are retirement plans that anyone with retirement savings should consider. The products come with many benefits that intend to help retirees in South Africa.
Products are different and target the different needs of investors. There is a plan for almost anyone that needs a retirement income. Plans are also affordable which makes them even more attractive.
