Posted on Sep 2, 2021 by Staff Writer
Retiring with a monthly income is a desire for many South Africans. Knowing when to make retirement decisions requires one to be very scrupulous. One needs to start investing for their retirement at an early age. This means you need to start making decisions about your retirement in your youthful years otherwise you may miss out on financial independence in your elderly years.
However, should you miss out on investing for your retirement at an early stage in life, Momentum gives you the opportunity to invest in your retirement at retirement. The Momentum Golden Living Annuity is an annuity that allows members to enjoy the rest of their retirement without having any financial distress.
The Momentum Golden Living Annuity gives members of the annuity the edge to live a better life at retirement. Members can afford proper medication or medical attention and are able to maintain their household. It is possible to set financial goals for your retirement and afford financial stability since you are able to structure the amount of income you are looking to earn with Momentum. Momentum makes this possible by advising you on how much you need to invest to earn your desired living annuity.
However, living annuities do not offer any guarantee of consistent income but they normally issue out favorable investment returns. Momentum Golden Living Annuity is no exception, members are not guaranteed any regular income but can only receive income on positive results as per portfolio performance. Through investments using Momentum’s investment portfolios, Golden Living Annuity is more rewarding at retirement since investment portfolios use outcome-based investment.
What is the Momentum Golden Living Annuity?
Momentum Golden Living Annuity is a retirement income that pays regular income at retirement based on returns of market-linked investment portfolios. A portion of your retirement savings is withdrawn each month to pay you a living annuity. The money that remains plus interest payment is retained into your investment account for possible greater future interest earnings.
The golden living annuity earnings are dependent on the earnings of the underlying investment portfolio that the funds are invested in. Therefore, withdrawals on the annuity may increase or decrease the capital investment at different time intervals.
The Momentum Golden living annuity doesn’t have any guarantees attached to it. This means that investors can lose all their money should the performance of the investment portfolio yield negative results. This is, however, a rare occasion since funds are invested in different investment portfolios and to different financial instruments 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.
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.
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