Most people who want to save for retirement through Liberty Life often wonder which type of annuity is best for them. Well, when deciding on the best annuity, these are the factors to consider:
Terms of joining
The best annuity is one that is not difficult to join, it should be flexible.
Since you are saving so as to earn maximum amount in terms of interest on accumulated amount, you have to consider the kind of annuity that has maximum benefits.
When investing, several costs must be incurred. But the best annuity is that that attracts few costs.
Time to Maturity
A good annuity must mature immediately you go for retirement. Since in South Africa, retirement age is 55, your annuity should start benefiting you from that age.
Having looked at the three basic annuities offered by Liberty Life, which are; Agile Retirement Annuity, Evolve Retirement Plan, and Retirement Annuity Plan, I suggest you pick Evolve Retirement Annuity.
The reason we suggest Evolve Retirement Annuity is because it has the following attractive benefits:
The Evolve [Retirement Annuity] Plan allows you to provide for your retirement or to supplement your existing retirement plan.
Liberty Evolve Retirement Annuity Plan doesn’t charge set-up costs or initial advice fees until we earn you more than 14% per annum. With Evolve, we grow your money first.
Benefits can be accessed from age 55, as retirement benefits.
You are allowed to invest R150 000 once off or R100 000 with recurring investments of R400 or more per month.
The company takes on the risk, and you share in the rewards of great returns.They promise that if your investment doesn’t grow by the target return in any of the first three years, you will never have to pay for the costs of setting up your investment.
Your money is safe from most creditors
Legislation only allows certain withdrawals prior to retirement (minimum of 55 years), such as payment in terms of a divorce or maintenance order.
The most attractive part is one that says they won’t charge you set up costs until your money starts earning interest rate of 14 %