Choose an
annuity portfolio
A range of annuity portfolios to
choose from post retirement.
corporate annuity portfolios

What is Old Mutual Annuity Portfolio?

Being a member of a retirement fund is only one part of ensuring a comfortable, financially secure retirement. Another vital component is making a good, informed decision about how, and where, to invest retirement benefits at retirement so that retirees have the income they need, for as long as they need it.
Annuities for trusteesIf you’re a trustee responsible for the retirement success of your fund members, allow us to be your trusted partner.

As a trustee, you’re not just responsible for overseeing your members’ retirement fund, you also have a duty to help them make the right decision about where to invest their benefit at retirement to maximise their pension income and protect their capital.

Man looking through the window
Post retirement products for your employeesChoose from a range of products to invest in at retirement.Platinum Pension 2003Your pension is backed by the considerable financial strength and reputation of Old Mutual. The benefits of Platinum Pension 2003:
  • The pension is payable for life
  • The pension can never decrease with the increases that offset the effects of inflation.
  • The assets are managed by the local market leader in annuities.
Platinum Pension 2003
Inflation-linked AnnuityPensioners receive a pension that is guaranteed to increase in line with inflation for the duration of their life. The benefits of an Inflation-linked Annuity:
  • A pension that can never decrease with increases that offset the effects of inflation.
Inflation
Pensions OpitPlusOffers you a guaranteed monthly income and the opportunity to participate in profits via an annual increase. The benefits of Pensions OptiPlus:
  • The pension is payable for life
  • A pension that can never decrease with increases that offset the effects of inflation.
  • The assets managed by the local market leader in annuities.
Pensions OpitPlus
Platinum PensionAs a pensioner in Old Mutual Platinum Pension, you enjoy the security. The benefits of Platinum Pension:
  • It's payable for life
  • A pension that can never decrease with increases that offset the effects of inflation
  • Assets are managed by the local market leader in annuities
Platinum Pension
Why choose Old Mutual Annuity Portfolios?Being a member of a retirement fund is only one part of ensuring a comfortable, financially secure retirement.
Want to know more about Annuity Portfolios?Do you have a specific question about your Old Mutual Annuity investment? We've provided answers below but to speak to a consultant you can call, 021 530 9600.
  • Increases are not worked out or decided by an individual. They are the result of a comprehensive review by a number of senior Old Mutual actuaries and are only declared once they have been approved by the Old Mutual Life Assurance Company (South Africa) Board.

    Pension increases are determined following a rigorous process where the impacts of different increase scenarios are considered. Old Mutual’s main goal is to declare as high an increase as possible without jeopardising the future stability and security of either the pensions paid or the investment portfolio. Increases also need to take the smoothing policy into account.

  • A with-profit annuity provides regular pension payments for life as well as the opportunity to participate in investment and mortality profits via an annual pension increase. It gives pensioners the credit for future investment returns via a reduced purchase price and future payment increases.

    The following are the benefits of with-profit annuities:

    • There are various purchase interest rate (PRI) categories, which offer initial flexible pricing.
    • Guaranteed payment for life that provides protection against living longer than expected (mortality risk).
    • With-profits annuities share in the mortality risk.
    • Pension payments are guaranteed never to decrease.
    • Declared increases are guaranteed for life.
    • Increases are based on investment performance so the policyholder shares in the investment risk.
    • Increases provide indirect inflation protection.
    • Historical increases on many with-profit annuities are higher than inflation (CPI).
    • The investment philosophy is adaptable.
    • Most PRI categories are cheaper than inflation-linked and guaranteed escalating annuities due to the lower level of guarantee.
  • The Old Mutual Investment Group South Africa (OMIG) manages the investment of the assets underlying the with-profit annuities.

    Old Mutual Specialised Finance (OMSFIN), a boutique in the OMIG stable, manages the matched bond portfolio, while the Macro Strategy team, also a boutique in the OMIG stable, manages the allocation of the balance of the assets.

    The investment philosophy is to protect the interests of investors while ensuring good growth over the long term.

    The pensioner assets are managed in a specially designated pensioner portfolio, which is split into three separate asset pools, each with its own asset mix. This investment strategy recognises the different levels of investment guarantees inherent in the various categories (i.e. the higher the PRI, the higher the investment return that has to be achieved on the assets).

    Old Mutual actively manages the underlying portfolios to ensure that the asset structure is appropriate to the prevailing investment climate.

  • Smoothing is a technique used to help pension increases remain fairly stable. The aim is to ‘dampen’ market volatility as much as possible so that the ups and downs of the market are not passed directly on to the pensioner.

    To enable this smoothing, during years of exceptional market performance the increases declared will be lower than the actual returns achieved by the investments. The difference is then kept in a reserve so that higher increases can be declared when the markets perform poorly.

  • Inflation-linked annuities provide pension payments for life, guaranteed to increase in line with inflation. Old Mutual offers the following inflation-linked annuities:

    • 75% CPI Inflation
    • 100% CPI Inflation
    • CPI Inflation plus 1%
    • CPI Inflation plus 2%
    • CPI Inflation plus 3%
    • CPI Inflation plus 4%
    • CPI Inflation plus 5%

    The benefits of inflation-linked annuities are as follows:

    • The increases are guaranteed to be in line with inflation.
    • A guaranteed payment for life provides protection against living longer than expected.
    • Payments are guaranteed never to decrease, provided this option is chosen upfront.
    • Less complicated and easier to understand than, for example, with-profit annuities.
  • Each fund can choose its own date on which the annual increase will be applied. The percentage increase will be equivalent to the overall percentage of the year-on-year headline Consumer Price Index (CPI) increase, in the all expenditure groups, four months prior to the increase date.

  • Johannesburg: Tel: +27 11 217 1000

    Cape Town: Tel: +27 21 530 9600

    Durban: Tel: +27 31 275 0800

    Port Elizabeth: Tel: +27 41 391 6300