Meet John*,

John has been a member of the Old Mutual SuperFund for many years, and he’s now just a few months away from retirement. He’s been googling late into the night, but he still isn't clear on the various post-retirement income solutions or annuities available to him.

What should John do?

The good news is that, as an Old Mutual SuperFund member, he doesn't have to navigate the often-confusing retirement landscape alone. SuperFund recognises the need for members to make informed retirement decisions, so members are provided access to the free service of an Old Mutual SuperFund Retirement Benefits Counsellor.

Navigating retirement

Like John, you may find the retirement landscape daunting, and trying to make life-changing decisions when you’re unclear about your options can be overwhelming.

Although there is ample information about the choices available to you, the implications of choosing one course of action over another are not always apparent, and your circumstances are unique. In addition, retirement options are complex, and if you make a poor decision, it could affect you during the time of your life when you’re most financially vulnerable.

With this in mind, Old Mutual Corporate provides a free retirement benefit counselling service.

What is a Retirement Benefits Counsellor?

At the outset, it's important to note what a Retirement Benefits Counsellor is not, says Fil Badenhorst, an Annuities Consultant at Old Mutual Corporate.

“A Retirement Benefits Counsellor is not a financial adviser and therefore cannot offer financial advice,” she says. “Retirement Benefits Counsellors are professionals who assist pre-retiring members by explaining the options available to members in clear and understandable language. This allows members to make informed decisions when choosing how to use their retirement savings to provide a retirement income for the rest of their lives,” states Badenhorst.

Retirement Benefits Counsellors don’t earn a commission for the information and guidance they provide, and their services are free.

If you require the services of a financial adviser, your Retirement Benefits Counsellor can put you in touch with your fund intermediary or an Old Mutual financial adviser.

So, what can a Retirement Benefits Counsellor do for you?

Retirement Benefits Counsellors can explain how annuities work to provide you with a retirement income and outline the differences between annuity types.

“In a non-threatening environment, and in any of South Africa's 11 official languages, they can answer any questions you may have, take you through the retirement process, and provide you with the information you may need to make an informed decision,” Badenhorst says.

A Retirement Benefits Counsellor will also ask you questions to help you better understand your needs.

A valuable aspect of the counselling process is being able to visualise what different retirement options may look like. It can help you to understand the implications of your choices and the tax consequences thereof.

Finally, Retirement Benefits Counsellors can provide you with quotations available through the fund's default annuity offering and assist you in completing the retirement quotation and claim forms.

When and how to contact a Retirement Benefits Counsellor

You have access to a Retirement Benefits Counsellor from 10 years before your retirement date.

“Where possible, it’s recommended that you do so at least six months before you intend to retire,” notes Badenhorst. “From there, the Retirement Benefits Counsellor will hold your hand until you feel you have enough information on the options available to make an informed decision.”

“It is, however, never too late to consult a Retirement Benefits Counsellor.”

Want to learn more? Watch our series of explainer videos outlining the various benefits of Old Mutual SuperFund.

Provided you are a member of one of the retirement funds administered by Old Mutual Corporate, you can email annuitystrategy@oldmutual.com or call 021 503 0069 and ask to be referred to a Retirement Benefits Counsellor. Otherwise, check with your fund representative if your fund has an Annuity Service Level Agreement with Old Mutual Corporate. If they do, you too may contact a Retirement Benefits Counsellor via the above channels.

*John is a fictional character used to illustrate a challenge faced by Old Mutual SuperFund members.