Employers want to ensure that the pension provided to staff at retirement keeps up with inflation, as many pensioners place a high value on guaranteed inflation protection. This is achieved through a purchase of an inflation-linked annuity on a group basis.
Old Mutual's Inflation-Linked Annuity allows employers to outsource their pensioner liability to Old Mutual with the guarantee that the member's pension will keep up with inflation.
The Inflation-Linked Annuity will only be available as a compulsory purchase annuity for members retiring from pension, provident and retirement annuity funds.
The underlying investment portfolios are managed by Old Mutual Investment Group.
Features & Benefits
- Pensioners receive a pension that is guaranteed to increase in line with inflation for the duration of their life.
- The following guarantee options are available:
- 75% of CPI Inflation
- 100% of CPI Inflation
- CPI Inflation + 1%
- CPI Inflation + 2%
- CPI Inflation + 3%
- CPI Inflation + 4%
- CPI Inflation + 5%
- Old Mutual manages the mortality risk by guaranteeing to pay a pension for the period of the contract. This guarantee is backed by the balance sheet of Old Mutual.
- Old Mutual carries the investment risk.
- Efficient and reliable pensioner administration capability.
Value-add to clients
- Pensioners receive a pension that is guaranteed to increase in line with inflation.
- Old Mutual carries the investment risk.
Performance-related information
Brochures and Fact Sheets
Disclosure and Governance