know today exactly what you will retire on. guaranteed. · 1 agile retirement range * retirement...

* Retirement Annuity and Preserver products Agile Retirement Range1 Agile Retirement Range1 2

Know today exactly what you will retire on. Guaranteed.

When it comes to your income in retirement, we know you

want answers not estimates.

That’s why we’ve designed the Agile Retirement Range, South

Africa’s first and only collection of retirement products*

that let you know today exactly what your income will be in

retirement − regardless of how the markets perform.

The Agile Retirement Range gives you a guaranteed income

in retirement and the ability to invest in multiple portfolios

according to your retirement strategy. No other retirement

products give you the flexibility of competitive investment

returns and risk-free certainty, turning retirement planning

into retirement knowing.

“Agile allows you to invest in portfolios that give you the perfect balance of investment returns and certainty, today and in retirement.”

Agile Retirement Range

Agile Retirement Range How it worksThe Agile Retirement Range allows you to invest in portfolios that give you the perfect balance of investment returns and income certainty. It is made up of three distinctive retirement products.

An investment in the Agile Retirement Range will allow you to split your money between the Exact Income Fund and various

other investment portfolios depending on the level of certainty or growth you are looking for. Currently the growth on your

investment leading up to retirement accumulates tax-free. When you retire you’ll be taxed in accordance with applicable

legislation.

The Agile Retirement Range should be used to complement your overall retirement plan, rather than being the only aspect of

your retirement strategy.

RETIREMENT ANNUITY PENSION PRESERVER PROVIDENT PRESERVER

A Retirement Annuity is a taxeffective retirement investmentwhich is designed primarily forindividuals who want to saveadditional amounts outside of anypension or provident funds that theymay participate in.

At retirement, a Retirement Annuity allows you to take up to one third as a lump sum, subject to any applicable tax. The remaining amount must be used to buy a taxable annuity*, which will allow you to receive an income for life.

Employers sometimes offer their staff the benefit of saving for their retirement. This is usually done by enrolling in either a provident or pension fund. A portion of your salary is then saved in this fund every month for your retirement. There are certain rules about how and when you can access and use the money.

If you are thinking of leaving your job, both of these products can assist you in preserving your existing investment up until retirement. These products also allow you to withdraw a portion of or your full investment before retirement, subject to relevant legislation and applicable tax.

At retirement, the Pension Preserver allows you to take up to one third as a lump sum, subject to any applicable tax. The remaining amount must be used to buy a taxable annuity*, which will allow you to receive an income for life.

At retirement, the Provident Preserver allows you to take your full investment amount as a lump sum, subject to any applicable tax. Alternatively, you can take it as a taxable annuity or a combination of both.

Retirement Annuity | Pension Preserver | Provident Preserver

Investments toward your retirement savings are split between various portfolios

Only investments in the Exact Income Fund will contribute toward guaranteeing you a certain level of income. There are also limits to how much you can invest in the Exact Income Fund.

This portion of your money contributes toward guaranteeing

a certain level of income in retirement.

This can be used as a foundation for building your retirement income.

AGILE RETIREMENT RANGE

OTHER INVESTMENT PORTFOLIOS

ALLOCATED FOR GROWTH

EXACT INCOME FUND

ALLOCATED FOR GUARANTEED INCOME

By having a secure portion of income in the Exact Income Fund, it

may free you up to look for more growth opportunities in other

investment portfolios.

This portion of your money is allocated to investment portfolios that you have selected and does not

result in any level of guaranteed income.

You can choose from a range of investment portfolios based on the

risk you're willing to take.

It guarantees you the amount of money you will receive in

retirement.

* An annuity is an insurance contract which pays you a regular income.

3 4Agile Retirement RangeAgile Retirement Range

Exact Income Fund

The Exact Income Fund is a one-of-a-kind portfolio that guarantees exactly what your income will be in retirement from the

moment you invest. Each time you contribute to the fund, you ensure more guaranteed regular monthly income. If you are a

young investor looking for aggressive portfolio growth, you may want to commit less of your retirement savings to the Exact

Income Fund. Older, more risk-averse investors would potentially invest a higher portion in the Exact Income Fund.

Other Investment Portfolios

In addition to the Exact Income Fund, you can choose from 15 of the top asset management companies with access to over 100

investment portfolios. As your needs change, you will also be able to adjust your portfolio mix on an ongoing basis at no cost.

Split your investment between the income certainty and investment growth that you are looking for leading up to retirement.

Speak to a financial adviser or broker to identify the ideal age for you to participate in the Exact Income Fund.

Your retirement journey

97.5%allocated to

your choice of portfolios

95%allocated to


80%allocated to


60%allocated to


50%allocated to


20%allocated to the Exact Income

Fund

5%2.5%


Fund


Fund

The Exact Income Fund gives you retirement income certainty

Age 35 - 39 Age 40 - 44 Age 45 - 49 Age 50 - 54 Age 55 and above

100%allocated to


Below age 35

Your

inve

stm

ent s

plit

by %

100

%0

%

Your choice of portfolios aims to give you retirement investment growth

Illustrative example

6Agile Retirement Range5 Agile Retirement Range

Agile is for you if:

• Youarelookingforawaytosaveforyourretirement.

• Youarelookingtoguaranteeyourincomeinretirement.

• Youarelookingforalow-costandflexibleretirementsolution.

• Youarelookingforportfoliochoice.

Agile is not for you if:

• Youneedunrestrictedaccesstoyourinvestmentbeforeretirement.

• Youarenotpreparedtoactivelymonitoryourproduct’sperformance

with your broker or financial adviser on an ongoing basis.

• Youdon’tthinkyouneedanincomeinretirement.

Our Agile Retirement Range affords you a host of benefits to ensure a balance between income certainty and investment growth.

What the Agile Retirement Range can do for you.


Customised Retirement Planning

Choose to split your investment amounts between the Exact Income Fund and other portfolios

depending on the level of income certainty or investment growth you are looking for.

Flexible Payment Methods

Invest through regular debit orders, lump sum investments or a combination of the two. You can even

stop and re-start your investments at any time at no cost.

South Africa’s Top Asset Managers

Choose from over 100 of South Africa’s top-rated investment portfolios from 15 of the top asset

management companies in the country.

Low Platform Fees

The Exact Income Fund has no platform or portfolio fees. However, your investment in other portfolios

will charge a platform fee of 0.3% per annum and the applicable portfolio management fee. Both fees

are calculated as a percentage of the investment value and are deducted monthly.

Tax Benefits

The Agile Retirement Range provides you with a number of tax benefits.

The only portfolio that guarantees your income in retirement

Before Liberty developed the Exact Income Fund, no

one could tell you with any certainty what your monthly

retirement income would be until the day you actually retired.

For example, a person who retired in 2002 would have

received 13.5% interest on their savings based on the market

at the time. This meant that they could expect to get interest

of R13.50 for every R100.00 they invested. By 2005, market

fluctuations had resulted in them only receiving R7.00

interest for every R100.00 they had invested. This means

that had you planned your retirement in 2002 in order to

retire in 2005, you may have received only half of what you

were expecting.

The Exact Income Fund

Don’t let the markets ruin your retirement

13.5% Interest

7% Interest

12%Interest

12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014

4.5% Interest

The Exact Income Fund is able to guarantee a portion of your retirement income today. This gives you a yardstick with which to

track your retirement goals, turning retirement planning into retirement knowing. It is important to understand that the income

you have secured for your retirement does not grow in line with inflation leading up to retirement.

Having already established a solid foundation for your monthly retirement income with the Exact Income Fund, you can take

advantage of investment growth opportunities with the remaining portion of your investment.

Source: Liberty


Changes in interest rates impact the amount of income you can buy in retirement. Guarantee your retirement income today with the Exact Income Fund.

What the Exact Income Fund can do for you.

Guaranteed Income

The Exact Income Fund guarantees a monthly retirement income. You can be certain of the income you will

receive in retirement depending on how much you put away in the Exact Income Fund.

Lasting Retirement Income

With breakthroughs in medical science, people are living to their 80s, 90s and even their 100s. The

Exact Income Fund can guarantee your retirement income.

Keep up with Rising Costs

The cost of living and healthcare are on the rise. By regularly reviewing and adjusting your investments

into the Exact Income Fund, you can manage the impacts of inflating costs.

Manage Market Uncertainty

Economic, social and political events not only affect the markets but your retirement income as well.

The Exact Income Fund will help you manage these risks by providing you with a guaranteed income

that remains unaffected by external factors.

The Exact Income Fund is for you:• Ifyouwanttoguaranteeaportionofyourincomeinretirement,today.• Ifyouarelookingforincomecertainty.• Ifyouwanttodiversifyyourretirementinvestmentsbyachievingabalance between income certainty versus achieving investment growth.

The Exact Income Fund is not for you:• Ifyouareworriedthatthevalueoftheincomeyoureceivetodaywillbe insufficient to maintain your retirement lifestyle.• Ifyoupreferinvestmentgrowthoverincomecertainty.• Ifyouarenotconcernedaboutlivingtoolong.• Ifyouhaveanyseriousmedicalconditions.


Q & A Exact Income Fund

How do I compare the Exact Income Fund to other portfolios?To make it easy, we have calculated what we call an Equivalent

Portfolio Return. This is the level of return another portfolio

must give you to match the outcome of the Exact Income

Fund. You will be able to use the Equivalent Portfolio Return

to compare the returns of the Exact Income Fund with other

investment portfolios. When investing in other investment

portfolios, markets and interest rates fluctuate and may, or may

not, move in your favour. This will affect the monthly income

that you will be able to purchase when you retire. With the Exact

Income Fund, this uncertainty is removed.

There are two aspects that must be considered when doing a comparison with other investment portfolios using the Equivalent Portfolio Return:• Firstly, we guarantee your income in retirement today.

• Secondly, as it is not possible to predict what the annuity

rates will be at your selected retirement date with

confidence, we’ve assumed today’s annuity rates in

calculating the Equivalent Portfolio Return.

Does investing in the Exact Income Fund take inflation into account? No, the Exact Income Fund does not take inflation into account.

The income that you will receive in retirement will be calculated

in today’s Rand value. You will need to look at and potentially

adjust your retirement investments regularly to see if you are

still on track to meet your retirement goals.

How often should I check the performance of my portfolios?As with any investment, periodic reviews and regular monitoring

are required to make sure the investment is still suitable to your

needs. You should review your investment at least once a year.

Will guaranteeing my retirement income be expensive? No. The Exact Income Fund has a built-in income guarantee

included in the income purchased. You do not pay anything

extra for this.

Your investments in some of the other investment portfolios

offer traditional investment guarantees. If you select an

investment portfolio and include an investment guarantee, an

additional charge will apply. Speak to your financial adviser or

broker regarding the options that are available to you.

How much is this going to cost me in administration fees?The Exact Income Fund has no platform or portfolio fees.

However, your investment in other portfolios will charge a

platform fee of 0.3% per annum and the applicable portfolio

management fee. Both fees are calculated as a percentage

of the investment value and are deducted monthly.

How many times can I switch between portfolios?Your investment in the Exact Income Fund can be switched

to another portfolio. However you should approach this with

caution. If you switch out before retirement then you will

need to go through an underwriting process and will lose your

guarantee on the monthly amount that is payable in retirement.

It is better to gradually build up your investment in this portfolio

over time, rather than switch in and out regularly. When it

comes to the other portfolios that you have selected, you can

switch between them whenever you want, at no cost.

What happens if I exit or access my money in the Exact Income Fund earlier?If you decide to exit the Exact Income Fund or access your money before the benefits become due to you, you will have to go through an underwriting process and we will need to adjust

the value of your investment accordingly. You should also note that the investment value that you will receive when you exit could be significantly less or more than the amount you originally invested. Our guarantee to you is calculated based on your commitment to stay invested in the Exact Income Fund until the benefits become due to you in retirement. The investment value you receive is influenced by many factors, including:

• The length of time your money is invested with us. Our initial guarantee is based on you remaining invested in the Exact Income Fund for the full term. If you decide to exit the Exact Income Fund before the benefits become due to you then we can no longer achieve the expected return we initially secured.

• Interest rates may change from the time your investment was made (if interest rates drop on average, your value would increase; conversely, if interest rates rise on average, your value would decrease).

• How long we expect you to live to (the longer we expect you to live, the more your Exact Income Fund will be worth).

What if I change my retirement date?If you want to change your selected retirement date, the guaranteed income provided by the Exact Income Fund will be adjusted accordingly based on market rates applicable at that time.

When I retire, am I able to change the way my income is paid from the Exact Income Fund?When you retire, the Exact Income Fund will pay you a guaranteed level of income in retirement. If you would like to make any changes to how your income is paid out, such as including your spouse or increasing the income you receive every year, you will have the option to convert your current

annuity into another type of annuity. If you don‘t use your

investment from the Exact Income Fund to buy a guaranteed

income from Liberty, then you will need to go through the

underwriting process. The word annuity refers to a regular income.

If you choose to receive your retirement income through

another type of guaranteed income annuity from Liberty,

the amount you will receive in income will be different. If you

change the way the income is paid to you, the guarantee you

have in the Exact Income Fund will also change to reflect this.

Is my retirement income guaranteed for life?If people aren’t living significantly longer when you retire, then

you will get the income you’ve built up in the Exact Income

Fund for life from your elected retirement date. Things can

change over time and in the unlikely event that the average

65-year old Liberty annuitant is expected to live past the age

of 100 for men and 104 for women (currently 85 for men and

89 for women) when you retire, then the following income

options will be made available to you:

• You can delay your retirement by a year or two. We will

let you know the new retirement age needed to ensure

your original guaranteed income for life.

• You can retire at your selected retirement date and

accept a slightly lower income payable for life.

• You can retire at your selected retirement date and keep

the same level of income but the income will only be paid

until the age of 100 for men and 104 for women, after

which it will reduce.

You must remember that these adjustment options will only

apply if there is an unexpected and dramatic improvement in

life expectancy.

When I retire, what happens to the money not invested in the Exact Income Fund?If you are not 100% invested in the Exact Income Fund at

retirement, you can then use the remaining portion of your

investment to buy whatever annuity is available at the time.

This annuity will be in addition to the annuity you receive via

the Exact Income Fund. This second annuity is subject to the

annuity rate being offered at the time.


What is the minimum I can invest? You can invest a minimum of R15 000 as a lump sum and / or

at least R1 000 per month.

How often can I invest? You can add to your investment as often as you like.

Can I get tax deductions for amounts I invested?Your invested amounts are tax deductible subject to

legislative limits.

Can I access my benefit before retirement? You may retire before the age of 55, if you can prove to the

Board of Management of the Fund that your retirement

is as a result of ill health. Legislation also allows certain

withdrawals from the Fund before the age of 55. You

may withdraw from the Fund if it is related to divorce,

maintenance orders or emigration / expatriation or where

the total investment value in the Fund is less than R7 000.

What happens when I retire? The Exact Income FundAs mentioned above, your investment in the Exact Income

Fund will pay you a guaranteed level of income in retirement.

This income is also subject to the applicable tax.

Other investment portfoliosYour investment in the other investment portfolios allows

you to take up to one third of your investment value as a

lump sum subject to applicable tax. The remaining money

must be used to buy an annuity for life.

If your investment comprises of any vested benefits* originally

accrued from a provident fund or Provident Preservation

Fund, the full annuity in relation to that vested benefit may be

taken as a lump sum at retirement. Your ability to access any

vested benefits will depend on legislation.

* Vested benefits are the investments you’ve made to any

provident fund or Provident Preservation Fund prior to a

specific date prescribed by legislation and on which there is no

restriction on the proportion of the investment which may be

taken as a lump sum at retirement.

I’m already saving via my company pension and provident fund. Do I need the Agile Retirement Annuity?Even if your company provides you with a pension or

provident fund, this may not be enough to retire comfortably.

You can use the Agile Retirement Annuity to supplement your

retirement investments and get additional tax advantages.

Agile’s Exact Income Fund creates a solid foundation for your

monthly retirement income, allowing you to take advantage

When you invest money in the Agile Retirement Annuity, you will become a member of the Lifestyle Retirement

Annuity Fund, a registered and approved Retirement Annuity fund. Although the Fund purchases the Agile

Retirement Annuity on your behalf and provides you with retirement benefits when you retire, you will still have the

freedom to choose which portfolios you want the Fund to invest in on your behalf. These retirement benefits are the

investment value that you are entitled to at retirement.

of other growth investment opportunities with the remaining

portion of your investment.

Will I be penalised for changing the amount I invest in my Agile Retirement Annuity?You have total flexibility when investing. You can stop, start or

invest extra at any time, and at no cost.

Can I use my Agile Retirement Annuity as collateral? No, you can’t.

Can I transfer ownership? No, you can’t.

What happens if I get divorced?If you get divorced, Liberty will act in accordance with an

enforceable order issued by the court. This may mean a

portion of your retirement investments will be paid out to

your ex-spouse. This may impact the amount of income

you can draw in retirement and will have an impact on the

guaranteed income in the Exact Income Fund.

What happens to my investment should I pass away? Currently, your retirement benefits do not fall into your estate.

The Board of Management of the Fund has a legal duty to

ensure that your dependants / beneficiaries receive all or a

portion of the benefits according to legislative requirements.

Your dependants / beneficiaries will receive the value of your

investment in the Exact Income Fund and your other selected

portfolios at that point in time.

What are the tax benefits for the Agile Retirement Annuity?According to legislation, you can benefit from the following tax advantages:

• You can deduct your investments to your Retirement

Annuity from your taxable income up to a specified limit.

• The investment returns earned in a Retirement Annuity

are not currently taxed.

• At retirement, the lump sum benefit is tax-free up to a

specified limit. However your retirement income is taxed

as income.

• All limits referred to above are specified annually for the

tax year.

Can I cancel my Agile Retirement Annuity? No, you can’t. You can, however, transfer your Retirement

Annuity to another approved Retirement Annuity fund. If

you decide to transfer your Retirement Annuity, you may

receive less than what you invested on day one. This is due to

changes in the investment market, depending on when you

decide to transfer your investment.

Can I phase in my investment? Phasing in your investment means you have the option to pay

a lump sum and request for Liberty to transfer this money into

the market over a period of time. You will not be able to phase

into the Exact Income Fund, however phasing your investment

in your other portfolios is allowed.

Who can take out an Agile Retirement Annuity? Individuals who want to save for their retirement.

Q & A Agile Retirement Annuity


Q & A Agile Provident / Pension Preserver Fund

What is the minimum I can contribute?

You will need at least R150 000 on day one.

How often can I contribute?

You can invest an additional amount in the preserver funds

as long as the money comes from the same pension fund or

provident fund.

Can I access my benefit before retirement?

You can take all or a portion as your one allowable withdrawal

before age 55 subject to the tax per the specific tax tables for

lump sum withdrawals from retirement funds.

You may also retire before the age of 55, if you can prove to

the Board of Management of the Fund that your retirement

is as a result of ill health. Legislation also allows certain

withdrawals from the Fund before the age of 55, if the

withdrawals are related to divorce or maintenance orders.

What happens when I retire?

Provident Fund Preserver:


Your investment in the Exact Income Fund will pay you a

guaranteed level of income in retirement.

Other investment portfolios

Your investment in your other investment portfolios

will allow you to take all of your investment value as a

taxable lump sum less any tax; or as a taxable annuity; or a

combination of these two options.

Pension Fund Preserver:


Similar to the Provident Preserver, your investment in the

Exact Income Fund will pay you a guaranteed level of income

in retirement.

Other investment portfolios

Your investment in the other investment portfolios will allow

you to take up to one third of your investment value as a

taxable lump sum. The remaining two thirds must be used to

provide you with a taxable annuity for life.

If the provident or pension preserver investments have any

vested benefits* originally accrued from another retirement

fund, you will still have access to these benefits at retirement.

How you will be able to access these benefits depends on

legislation. If the Investment has non-vested benefits from

another retirement fund, it will need to follow the normal

rules of retirement. The right to access non-vested benefits

depends on legislation.

* Vested benefits are the investments you’ve made to any

provident fund or Provident Preservation Fund prior to a

specific date prescribed by legislation and on which there is no

restriction on the proportion of the investment which may be

taken as a lump sum at retirement.

Can I transfer ownership of my investment?

No, you can’t.

What happens to my investment should I pass away?

Currently, your retirement benefits do not fall into your

estate. The Board of Management of the Fund has a legal

duty to ensure that your dependants / beneficiaries receive

all or a portion of the benefits according to legislative

requirements. Your dependants / beneficiaries will receive

the value of your investment in the Exact Income Fund and

your other selected portfolios at that point in time.

What are the tax benefits of the Preservers?

• The investment growth in the Preservers is currently

tax-free.

• At retirement, the lump sum benefit is tax-free up to

a specified limit and the balance is subject to specific

tax tables for lump sums on retirement. However your

monthly income will be taxed at normal tax rates.

All legislative limits referred to above are specified annually

for each tax year.

Can I cancel the investment?

No, but you are allowed one withdrawal on all or a portion

of your investment before age 55. This is subject to the

withdrawal tax deduction. You will also be able to transfer to

another approved retirement fund. If you decide to transfer

your investment, you may receive less than what you

invested on day one. This is due to changes in the investment

market, depending on when you decide to transfer

your investment.

Who can take out an Agile Provident/Pension

Fund Preserver?

Individuals who are transferring money from another

approved pension or provident fund.

If you want to preserve the money you’ve saved through your employer provident or pension fund when you leave

your employer, you can become a member and transfer your money to the Lifestyle Retirement Preserver Provident

or Pension Fund. This transfer will be done on a tax-free basis as long as the transfer is not from a pension fund to

a provident fund. Although the Fund buys the Agile Provident/Pension Preserver on your behalf and allows you to

preserve your retirement benefits, you will still have the freedom to choose the portfolios you want the Fund to

invest in on your behalf.


know today exactly what you will retire on. guaranteed. · 1 agile retirement range * retirement...

Documents