In a living annuity, the client enjoys the reward but also takes on the risk of low or negative market returns, higher-than-expected inflation and living longer than expected. On the other side of the spectrum, in a life annuity, the client outsources all risk to the insurance company.
Pre-pandemic industry trends show that 90% of people chose a living annuity, whereas post-pandemic trends show that this level decreased to 70%. Therefore, more people are choosing to share these risks with the insurer to provide more certainty in volatile markets. But clients’ needs are constantly changing, and this requires a change in the solution set.
Clients and their financial advisors can add the Guaranteed Annuity Portfolio, Momentum’s life annuity, as an investment component to the Retirement Income Option which offers the flexibility for the client and advisor to decide when and how much risk to share. At the same time, the client can retain some exposure to potential investment growth. This solution provides the certainty and flexibility in one retirement income solution.
In this webinar recording, Moneyweb’s Ciaran Ryan chats with Fareeya Adam and Martin Riekert of Momentum Investments, where they discuss how Momentum Investments has reimagined retirement income planning and how the latest enhancements to its living annuity can enhance your value proposition to your clients.
More about the guests:
Head of retail product solutions at Momentum Investments.
Adam has been with Momentum for more than 16 years. She started as a student straight after university and has spent most of her time in product development roles, with a stint in the valuations team.
In her current role, her team is responsible for product development and product management for discretionary and retirement solutions, traditional life annuities, structured products and the international products.
Adam has a BCom Honours in Actuarial Science (University of Pretoria) and is a qualified actuary through the Institute of Actuaries (UK).
Executive head of retail investments at Momentum Investments.
Riekert began in wealth product development as an actuarial analyst and started the wealth actuarial team that supported the wealth business from a technical and business intelligence perspective. He later moved to product development, focusing on the Momentum Retail savings products.
Soon after the MMI (Momentum and Metropolitan) merger, he was promoted to head of the retirement solutions team, where he focused on retirement savings and preservation products, including the trustee governance function. In 2016, Riekert was promoted to head of all product development and product management activities for Momentum Investments. He became executive head of retail investments in 2020.
Riekert is a qualified actuary (Fellow of the Actuarial Society of South Africa) and has a BSc Actuarial and Financial Mathematics (UP) as well as a post-graduate diploma in Actuarial Science (UCT).
Brought to you by Momentum Investments.
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