Momentum Guaranteed Life Annuities Review 2021

Posted on Sep 2, 2021 by Staff Writer

Rateweb | South Africa

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 There is no better way to retire than to have a guaranteed retirement annuity. Momentum offers a guaranteed annuity with its Guaranteed retirement annuity. The annuity comes with many advantages such as receiving regular income, a guarantee of your principal investment and getting annual increase options. 

Momentum gives retirees an assurance that goes a long way. With the Momentum Guaranteed Life Annuities, one can be rest assured that they will receive income on a monthly basis. Momentum takes the whole investing responsibility of facing a loss leaving investors with guaranteed returns. 

Momentum has a guaranteed life annuity investment opportunity for retirees and each opportunity comes with specific benefits. The company has three guaranteed life annuity opportunities. These include golden income with profit annuity, golden growth with profit annuity, and golden income with profit annuity performer life.  We will discuss all three guaranteed life annuities in greater detail below.

Golden Income With – Profit Annuity

Golden Income With – Profit Annuity is a retirement annuity package that pays a guaranteed income based on the initial investment. Annuities on the Golden Income With – Profit Annuity increase but are declared every year and once an increase is granted it can never be taken away. 

Who should get the Golden Income With – Profit Annuity? 

The Momentum Golden Income With – Profit Annuity is suitable for:

  • Those that want to earn monthly income, at retirement, which will never decrease. Golden Income With – Profit Annuity provides a guaranteed monthly income. 
  • Those that want to invest in an annuity that increases based on the investment returns of the underlying assets. 
  • Investors who want to invest in an annuity that allows them to include their spouse after they pass away. 
  • Those who want to choose a guaranteed period on which the annuity will be paid and is not dependent on the main member being alive. 
  • Those with at least R100,000.00 or more to invest in a retirement annuity. 

What is the Momentum Golden Income With – Profit Annuity investment strategy? 

The Momentum Golden Income With – Profit Annuity uses two investment strategies to earn members favorable investment returns. Strategies include ‘A bonus generating portfolio’ and ‘An income matching portfolio’. 

A bonus generation portfolio is an investment vehicle that consists of a wide range of different asset classes. The portfolio is used to make considerations when deciding the annual bonus which determines the annuity increase each year. 

An income matching portfolio is a portfolio of low-risk assets that are carefully selected to ensure that the guaranteed level of the annuity is met in the future. This portfolio is a driving force of the Golden Income With – Profit Annuity. 

Note that assets are moved occasionally between ‘A bonus generation portfolio’ and ‘a bonus generation portfolio’. This movement of assets between the two portfolios results in very competitive annual management costs leaving more money to be shared by members. 

Golden Growth With – Profit Annuity 

Golden Growth With – Profit Annuity is a retirement annuity package from Momentum Investments that offers guaranteed income for life. The annuity has annual increases based on the investment returns of the underlying portfolio. The long-term target of the underlying portfolio is to beat inflation year to year by increasing annuity payments according to the inflation rate or more than the inflation rate. 

When buying the Golden Growth With – Profit Annuity, you get to choose your post-retirement interest rate. The post-retirement interest rate determines the size of your investment and the level of future annuity increases. Therefore, should you choose a high post-retirement rate, your initial annuity becomes higher but the future expected annuity increase becomes lower vice versa. 

Who should buy the Golden Growth With – Profit Annuity? 

  • Any retirement annuity investor that is looking for a guaranteed monthly income for life. 
  • Those that want a guaranteed retirement annuity that doesn’t decrease in monthly income and yet increases. 
  • Those that want a retirement annuity that increases based on the underlying portfolio every year. 
  • Investors that want a retirement annuity that allows for the inclusion of a spouse after their death. 
  • Those that want an option to choose a guaranteed period. 
  • Those with at least R100,000.00 to invest in a retirement annuity plan. 

What is the Momentum Golden Growth With – Profit Annuity investment strategy? 

The Momentum Golden Growth With – Profit Annuity uses ‘a bonus generating portfolio’ and ‘a matching fixed income portfolio’ investment portfolios to achieve specified outcomes. The Fund moves assets between the ‘ bonus generating portfolio’ and ‘a matching fixed income portfolio’ whenever necessary to lower management costs and achieve stated objectives. 

Golden Income With – Profit Annuity – Performer Life

Golden Income With – Profit Annuity – Performer Life is a retirement annuity that offers guaranteed income at retirement. Momentum has made this annuity possible by partnering with Alexander Forbes

The annuity uses Alexander Forbes’ expertise to manage the Bonus Generating Portfolio to yield much greater income for the members of the annuity. Increases in the annuity are declared yearly based on the performance of the underlying portfolios. 

Who should get the Golden Income With – Profit Annuity – Performer Life? 

  • Those looking for a guaranteed monthly income for life that never decreases. 
  • Those looking for an annuity with increases that cannot be taken away once granted. 
  • Investors looking for annuity increases linked to the investment returns earned on the Alexander Forbes Performer Life investment portfolio. 
  • Those that want an option to include an annuity for their spouse should they pass away. 
  • Those with at least R100,000.00 to invest. 

Conclusion 

Momentum offers guaranteed annuities that perform well and that aim to beat inflation. There are a number of annuity packages to choose from making Momentum’s annuity offerings diverse and able to accommodate different types of annuity investors.

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