Reviews

Ultimate Retirement Income 4life by Assupol Review 2021

Published by
Lethabo Ntsoane

The Assupol Ultimate Retirement Income 4life is a plan that guarantees an income for life. Ultimate retirement income 4life ensures that their members don’t have to worry about ‘living longer or dying too soon’ as their retirement wishes are covered beyond death.

The plan aims to make the financial aspirations of its members a reality with benefits for the main member, his/her spouse and children. 

Becoming a member of the Ultimate Retirement Income 4life will surely do you wonders since Assupol

offers financial assurance through this product.

For the purpose of this retirement plan, Assupol has introduced the ‘rewirement’ benefit, which allows members of the plan to gradually adjust their lifestyles and spending to match their retirement needs. Rewirement will be discussed further in the article. 

Assupol’s Ultimate Retirement Income 4life Summary

The Ultimate Retirement Income 4life is a retirement package from Assupol that guarantees income beyond retirement. To become a member of the Ultimate Retirement Income 4life plan, you need to contribute a minimum investment of R50,000.00 and be 55 years old at the time of joining or over 55 years. 

For those that want to leave a legacy, they can leave their spouse with 100% of their invested capital through the ‘Capital Protection’. Capital Protection guarantees up to 100% of your capital to be paid to any of your selected beneficiaries should you die prematurely. 

How the Ultimate Retirement Income 4life Work

 Ultimate retirement income 4life

Unlike the Carefree Life Retirement Annuity and the Assupol Preservation Funds, the Ultimate Retirement Income 4life offers extensive income at retirement but isn’t as flexible as the two other plans, meaning access to funds is only at death or during retirement.

The product is suitable for those that want security throughout their investment period at retirement. 

Assupol takes all the liability when it comes to inflation, market performance and other risks that come with investing. This is because when you take out this plan you agree on a retirement income that is guaranteed by Assupol. Income that you opt for may be fixed or paid as a recurring lump sum. 

You also have the opportunity to choose what happens to your capital should you die early. This option comes with two guarantees, which are:

  1. Opting for your selected beneficiary to continue receiving monthly income after your death, and
  2. Selecting your spouse to receive 100% of your monthly retirement income.

The Ultimate Retirement Income 4life plan is more about ensuring that you live a consistently comfortable life financially. It further gives you the opportunity to assure a consistent financial flow for your immediate family. 

Rewirement Feature by Assupol

Rewirement is a feature that allows you to gradually adjust your lifestyle and spending to match your retirement income, rather than a sudden adjustment at your date of retirement.

These adjustments happen when you take out an Ultimate Retirement Income 4life plan which accommodates your current income and works towards achieving your desired retirement income. 

With the help of Assupol financial advisors, you will receive a breakdown on how to reach your retirement income. The Rewirement Feature is a progressive adjustment to your monthly income at retirement.

It helps you to avoid choosing a level income or a living annuity whereby the income selected is sufficient in the short term without making adjustments to inflation and other expenses during retirement. 

As a new member of the plan, you can choose between the Level income or the Increasing income when taking the plan.

The Level income doesn’t take inflation into consideration as it fails to keep up with it since you start by receiving a high income at retirement, however, that high income remains stagnant during your investment period failing to keep up with inflation.

A good example of the level income option is investing a premium that will provide R1,000.00 per month at retirement. The R1,000.00 income will be fixed during the agreed period of investment. 

On the other hand, the increasing income keeps up with inflation with retirement income starting low and increasing at a compounding rate. For example, agreeing to receive R1000.00 per month as income 1st year and thereafter an increase of 2% per annum compounding.

The Rewirement Feature combines the level income and increasing income, which allows you to start off with higher-level income which increases after a few years to keep up with inflation. This borrows you time to adjust your spending at retirement to a level that is satisfactory to your retirement income needs. 

Features

  • Minimum entry age of 55 years.
  • There is no maximum age, therefore, anyone above the age of 55 years can become a member.
  • The minimum investment that is allowed is R50,000.00.
  • Cannot attach your Ultimate Retirement Income 4life plan as security for loans.
  • The policy cannot be cancelled or changed once it commences.
  • Has an option to ensure your spouse receives monthly income when you die.
  • There is a Rewirement feature that buys you time to increase your retirement income.
  • Capital protection option is afforded to every member of the plan to ensure that capital is gifted to your beneficiaries at death.
  • Guarantee term ensures that your spouse and dependents continue to receive income should you die before the guarantee term of the plan.

What you need to apply for the Assupol Ultimate Retirement Income 4life

  1. Proof of income tax reference number.
  2. Copy of your South African ID.
  3. Proof of address where you currently live which is not older than three months.
  4. Bank Statement or official stamped letter from your bank confirming your banking details. Must not be older than three months.
  5. The final quote for the Ultimate Retirement Income 4life cover.
  6. The Ultimate Retirement Income 4life cover application form. (click here to access the policy application form).

Competitive Advantages of the Ultimate Retirement Income 4life

  • There is no medical examination required.
  • Doesn’t have many restrictions as you can pay a lump sum without worrying about paying monthly or seasonal premiums.
  • The plan lasts for a lifetime.
  • Income is guaranteed immediately when you invest.
  • You can protect your children and spouse financially when you are no longer around to take care of them.
  • Can add as many as 3 beneficiaries to your policy.
  • There is no waiting period.

Competitive Disadvantages of the Ultimate Retirement Income 4life

  • Not many can afford to invest R50,000.00 at once.
  • There is no freedom to exit the contract once you have signed.
  • The minimum age is high as many would be in retirement or nearing retirement by then, therefore, some won’t be able to save towards becoming a member of the plan.

Conclusion

The Ultimate Retirement Income 4life plan is a sought after retirement plan for those that are already in retirement or plan to retire. It is a straightforward retirement package that one may look forward to purchasing since it offers income guarantees during retirement. With its restriction on withdrawing or moving your capital, you will need to be thorough when investing in this plan because it is for a lifetime.

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane