What is Max Income Living Annuity?Approaching retirement and not sure what to do? Often people think it's too late to save some more money for the rest of their life but that's not true. When you invest in the Max Income Living Annuity, you can choose how much your pension payments will be as a percentage of the total amount you invest.
This living annuity allows you to choose where your retirement savings are invested. You can also select the drawdown rate - the annual percentage of your investment amount that will be paid to you as a regular income. Carefully consider the drawdown rate because if it is too high, the invested capital could soon run out - leaving you without an income. The Old Mutual SuperFund Management Board will recommend a drawdown rate that it believes has a higher likelihood of being sustainable.
You are able to increase the annual pension you receive once per year. The amount of this increase is up to you and is not built into the product. As with the initial pension decision, if you make the annual increases bigger than the growth of your investment, you could eventually deplete your investment capital and lose your pension.