Invest for lifeWith this annuity you are guaranteed to
receive your pension for the rest of your life.

What is Fund Select Annuity?

The Old Mutual Fund Select Annuity investment option is also known as a life annuity or a guaranteed annuity. This means that the pension you start out earning will depend on the amount that you invest, and you are guaranteed to receive your pension for the rest of your life. The yearly pension increases you receive depend on how the investment markets perform.
How does Fund Select Annuity work?

When you retire, you invest some, or all of your retirement savings into Fund Select Annuity (the law requires that you invest at least 2/3 of your fund benefit in an annuity on retirement). Depending on how much you invest, you will get a monthly pension paid to you from your Fund Select Annuity for the rest of your life.

Man in formal wear walkingWhat Fund Select Annuity offers?
  • A favourable annuity rate
  • A life guarantee
  • Protection against inflation through participation in the bonus of underlying investment portfolios (annual pension increase)
  • The ability for members to specify a second life to be covered (e.g. spouse or partner) at 50%, 75% or 100%
  • Members may select whether the annuity must be paid for a guaranteed term once it begins (e.g. 5, 10 years up to a maximum of 25 years)
  • Members can select the portion of their retirement benefit that they wish to apply to the Fund Select Annuity, with the balance invested in an alternative annuity or, subject to Income Tax regulations, taken as cash
Man in cozy wear
Why choose Old Mutual Fund Select Annuity?With more choice it's easier to find the right solutions for you.
Get the best out of your investmentWondering if Fund Select Annuity is the right at-retirement investment for you?Want to know more about Fund Select Annuity?

Contact your Old Mutual Retirement Benefits Counsellor for free information and guidance, email fundselect@oldmutual.com or call 021 503 0069. For Advice contact your personal financial adviser or your HR department for your employer fund intermediary details.

    Investment management charge

    Currently the annual charge is approximately 0.75% to 0.85% of assets (including VAT & asset manager costs). The percentage may vary slightly depending on the asset allocation and asset manager performance relative to benchmark. Annual increases declared are net of this charge.

    Administration fee

    A once-off initial fee of R2 120 (deducted from the capital invested). To prevent the deduction of monthly administrator fees from your pension, R95 per month (which is accrued for the anticipated term of your annuity policy) is deducted upfront from the capital value invested. Any quotes you receive already take these fee deductions into account and show the final estimated income you can expect to receive.

    Capital charge

    Currently set at 1% per year of the value of the underlying portfolio. This charge provides for the guarantee that your pension will be payable for your lifetime even if the capital amount you invested runs out. Annual increases declared are net of this charge.

    Old Mutual Fund Select Annuity provides a monthly pension (retirement income) guaranteed to be payable for the duration of your life. In exchange for this security throughout your retirement, Old Mutual Fund Select Annuity does not offer a lump sum benefit payout to your loved ones when you pass away.

    You can however cover a second life and/or choose a minimum guaranteed period, which pays the balance of your guaranteed period retirement income to your second life/beneficiaries if you pass away in this period.

    The Effective Annual Cost (EAC) is a measure which allows you to compare the estimated impact of charges on different Financial Products. The EAC is made up of four cost components, namely investment management, advice, administration and other. The effect of some of the charges may vary, depending on your investment period.

    Financial Products include all savings and investment products, but exclude pure risk-based products and memberships from pension and provident funds.

    Bonus escalating (with-profit) annuities are not purely risk-based and some of the costs incurred on the product will impact future bonuses (increases to the income) declared.

    The EAC measure is primarily focused on investment products that may be surrendered, but please note that individual bonus escalating annuities may not be surrendered unless the purchase amount was below the regulated minimums.

    Prior to purchase if your retirement interests are below the regulated minima you are able to elect to take your retirement interest as cash.

    If you would like to request a summary of the EAC for your annuity, email us at SuperFundAnnuity@oldmutual.com or call 0860 388 873.