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What is Old Mutual Inflation-linked Annuity?
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.
- Pensioners receive a pension that is guaranteed to increase in line with inflation for the duration of their life.
- 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.
_(8).webp "What's in it for you?")
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. Value added benefits is that pensioners receive a pension that is guaranteed to increase in line with inflation and Old Mutual carries the investment risk.
_(1)_(4).webp "Inflation Linked Annuity")
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.
If you are a pensioner invested in Old Mutual Annuity solutions - or you simply want to find out more about it then read the documents below.