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

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.

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What 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
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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?Take a look at the information below and if there is still something you need to know, please email us: fundselect@oldmutual.com or call us 0860 388 873.
  • 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 100 (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.

  • Since your pension is guaranteed for life, there is not likely to be any of your invested capital left when you die. This means that your Fund Select Annuity investment does not go to your dependents or beneficiaries as part of their inheritance when you die.

    If you have selected a guaranteed term and you pass away before the term has expired then the annuity will continue to be paid for the remaining balance of the term and if a second life was selected the annuity will only reduce to the selected level on the expiry of the guaranteed term.