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COMBINATIONS ILLUSTRATIONS
Rocco Car | Business Development Manager | Glacier by Sanlam
TYPICAL CL IENT
Retires too
soon/forced to retire
Still cares
for parents
and/or children
Have not
saved
enough
In his or her 60s
TYPICAL NEEDS
1 2 3 4 5
Income and capital need to grow with
inflation
Inheritance for children is important
I want wonderful
growth with no risk
Capital and income need
to be guaranteed
I need a bigger-than-
advisedincome
INCOME STREAM MANAGEMENTBECOMES PARAMOUNT
We need to see the issue from a new perspective…
Combining income
products can bridge the
gap…
and income stream management
between needs
Longevity leads to poverty
Inheritance and
flexibility
L IV ING ANNUITY ONLY
Client 63, spouse 60
6% income (R20 000pm), escalating by 5%
Inheritance andflexibility (can change funds and income)
Guaranteed Living Annuity 1
Point of no return
GUARANTEED L IFE ANNUITY 5% ESCALATION
Guaranteed joint life income of R22 019 (6.6%)
Annual guaranteed escalation of 5%
No inheritance after death of longest living spouse
10-year guaranteed term
No inheritance or income flexibility
Income stability
Guaranteed Living Annuity 1
GUARANTEED L IFE ANNUITY: NO ESCALATION
Guaranteed joint life income of R34 521 (10.4%)
No income escalation, no inheritance after death of longest living spouse
Guaranteed Living Annuity 1
High initial income, but no escalation or inheritance
COMPARING THESE OPT IONS
Only living annuity offers inheritance of fund value and income flexibility
Guarantees protect income
High initial income, but no escalation or inheritance
Average life expectancy
Guaranteed Living Annuity 2 Living Annuity 1 Guaranteed Living Annuity 1
FGLA (FLEXI GUARANTEE L IFE ANNUITY)
Existing living annuities
35% to guarantee
Increase trailer fee on living annuity (protect book)
Living Annuity 2 Guaranteed Living Annuity 1 Living Annuity 1
Combination as solution
L IV ING ANNUITY (40%) , JOINT L IFE 5% ESCALATION GUARANTEE (30%) AND I LL I (30%) COMBINED
As you get older, a larger portion of income comes from guarantees
Managing future income streams becomes the focus
Combination as solution
Guaranteed Living Annuity 2 Living Annuity 2 Guaranteed Term (Combined)
Guaranteed Living Annuity 1 Living Annuity 1 Investment-linked Lifetime Income 1
W HAT ARE THE OPTIONS?
Living Annuity
Flexibility on funds and income
Longevity risk
Life annuity (plan 2 or 3)
Income guaranteed
No flexibility or inheritance
Income with
capital preservation (plan 29)
Capital (amount can be selected) and income guaranteed
Cost of life premium and inflation
With-profit
annuity (ILLI)
Units guaranteed
Market exposure and flexibility
1 2 3 4
THANK YOU
The information in this presentation is provided for information purposes only and should not be construed as the rendering of advice to clients. Although we have taken reasonable steps to ensure the accuracy of the information, neither Sanlam nor any of its subsidiaries accept any liability whatsoever for any direct, indirect or consequential loss arising from the use of, or reliance in any manner on the information provided in this document.
Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5Tyger Valley 7536 | Email client.services@glacier.co.za | Tel +27 21 917 9002 / 0860 452 364Fax +27 21 947 9210 | Web www.glacier.co.za | Twitter @GlacierBySanlam | Reg No1999/025360/07 | Licensed Discretionary Financial Services Provider. FSP 770 trading as Glacier Invest.
Sanlam Multi-Manager International (Pty) Ltd. | A member of the Sanlam Group | Private Bag X8Tyger Valley 7536 | Tel +27 21 950 2600 | Fax +27 21 950 2126 | Web www.smmi.comReg No 2002/030939/07 | Discretionary Financial Services Provider, acting as Juristic Representative under the Glacier Financial Solutions FSP 770.
G L AC I E R F I N AN C I A L SO L U T I O N S ( PT Y) LT D I S A L I C E N S E D F I N AN C I A L SERVI C E S PR O VI D E R
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