Many South Africans aspire to retire with a monthly income. Knowing when to retire necessitates a high level of attention to detail. It is necessary to begin saving for retirement at a young age. This implies you should begin planning for your retirement while you are still young, or you risk losing financial freedom in your later years. However, if you miss out on investing for your retirement at a young age, Momentum allows you to do so later in life.

The Momentum Golden Living Annuity is a type of annuity that allows subscribers to enjoy their retirement years without worrying about money. The Momentum Golden Living Annuity gives annuity participants the advantage of living a better retirement life. Members are able to maintain their household and purchase adequate medication or medical attention.

Because you can organize the amount of income you want to earn with Momentum, you may set financial goals for your retirement and provide financial stability. Momentum helps you do this by advising you on how much money you’ll need to invest in order to get your desired living annuity. Living annuities, on the other hand, do not guarantee a steady income, but they usually provide good investment returns.

Members of the Momentum Golden Living Annuity are no exception; they are not promised a regular income and can only get income if their portfolio performs well. Golden Living Annuity is more lucrative in retirement thanks to investments made with Momentum’s investment portfolios, which use outcome-based investment.

What is the Momentum Golden Living Annuity? 

Momentum Golden Living Annuity is a type of retirement income that is dependent on the performance of market-linked investment portfolios. Each month, a portion of your retirement assets is deducted to pay you a living annuity. The money left over after interest is put into your investing account, where it can earn you more money in the future.

The earnings of the golden living annuity are determined by the performance of the underlying investment portfolio in which the funds are placed. As a result, annuity withdrawals may raise or decrease the capital investment at different times. There are no guarantees associated to the Momentum Golden living annuity. This means that if the investment portfolio’s performance is poor, investors could lose all of their money. This is a rare occurrence, as funds are invested in a variety of investment portfolios and financial instruments all around the world.

Who should invest in the Momentum Golden Living Annuity? 

Momentum’s Golden Living Annuity is not for every type of annuity investor. This is because it doesn’t function as an ordinary annuity and is dependent on many factors. Before choosing the Momentum Golden Living Annuity, you need to have a checklist and tick where you fit in as an investor, otherwise, should you feel like the golden living annuity is not for you, you can invest in other annuities from Momentum that are for you. 

Momentum Golden Living Annuity is suitable for:

• Anyone who is a member of a retirement fund that has chosen to make the Golden Living Annuity available to members ;
• Anyone that wants retirement income but still wants exposure to the investment market. Golden Living Annuity exposes members to investment opportunities in numerous investment opportunities around the world. 
• Anyone that wants to choose an income that suits their needs during retirement. Golden Living Annuity also comes with an option for members to change the living annuity annually should they feel that they want to reduce or increase their monthly payouts. 
• Anyone who wants the convenience to choose from pre-selected investment portfolios that are understandable by an average investor. 
• Those that want to access the outcome-based investment strategy that is offered by Momentum Investments. 
• Anyone that wants their remaining balance of their Golden Living Annuity to be paid to a selected number of beneficiaries when you pass away;
• Those that have at least R100,000.00 to invest. 

Benefits and features of the Momentum Golden Living Annuity 

Pre-selected investment portfolios

Golden Living Annuity invests in portfolio investments that aim to beat inflation year to year. Investing portfolios available uses the Momentum Investments’ philosophy of outcome-based investing. This means that portfolios target specific returns over a chosen period and defines risk as a likelihood. 

Therefore, the Golden Living Annuity doesn’t shy away from taking calculated risks and accepting the likelihood of the investment portfolio underperforming. However, investors can choose from a wide range of in-house investment portfolios that have years of proven track records. This makes investing easy and financial advisors are there to advise on which portfolio best fits your retirement investment needs.

Choice of Living income

Retirement income is chosen by the investor and can be changed annually. Note that there is a threshold of withdrawals. The current legislation that governs living annuities states that investors can make withdrawals of 2.5% – 17.5% of their investment value annually. 

The level of income that you choose becomes your living annuity and must be within the specified withdrawal threshold as per legislation. Changes in the income level of your investment can only be done on the anniversary of the policy. 

No investment guarantees 

Retirement income from the Momentum Golden Living Annuity doesn’t come with any guarantees. Since the Golden Living Annuity is based on choosing income that you desire per month, this means that the money invested can increase or decrease. 

Excessive withdrawals can cause the investment not to yield the interest that is desired in a long run. Should one withdraw more than they make per month, funds can run out leaving the account holder with no funds for future withdrawals. 

Conclusion 

Momentum’s Golden Living Annuity gives retirees an investment opportunity to earn income at retirement. Members have so much to gain but can also lose depending on the performance of the investment portfolio. 

To increase the chances of making money and having a great understanding of the Golden Living Annuity, Momentum has a number of assigned advisors available for free that can be utilized to help you make sound financial decisions.