Retirement marks the beginning of a new chapter in your life. On the downside, you lose the security of a monthly salary. While there's always your state pension to fall back on, it's generally not enough to maintain your pre-retirement lifestyle. If your employer has had the foresight to take out a
group insurance plan for you, you can cash in on this extra nest egg when you retire.
Before you retire, figure out for yourself how much you'll need to retire without worry. Once you've
monetised all these factors, you'll have a ballpark figure of how much you'll need to live the rest of your days in comfort. You may decide that you don't need to use any or just a small portion of your group insurance proceeds to achieve your retirement goals. If this is the case,
reinvestment may be a good option for you.
Once they retire, many people opt to
reinvest some or all of their group insurance proceeds as an opportunity to further grow their nest egg.
If you want to go this route, there is a vast array of investment products to choose from. For example,
investment funds are very popular and often a wise choice. At AG, we offer all kinds of possibilities, depending on your investor profile. Some of the best known vehicles are Branch 21 and Branch 23 insurance products.
- The main benefit of a
Branch 21 fund is the security of a
guaranteed return. Profit sharing may be awarded as well, but this is optional depending on the results achieved by the insurer. Branch 21 is therefore a safe haven option if you are rather
risk averse when it comes to investing your retirement nest egg.
- If you are willing to take on
more risk, you may want to consider a
Branch 23 insurance product, where your premiums and capital are invested in one or more funds with varying degrees of risk. It's up to you to decide how and where you want your premiums invested according to your risk appetite. The return on your invested capital will depend on fund performance.
In exchange for the higher risk associated with a Branch 23 investment and the fact that there is no guaranteed return, you get the potential for a greater return on investment than with Branch 21.
If you were enrolled in a group insurance plan with AG Employee Benefits, you can use the services of AG Ascento, AG Employee Benefits' end-of-career solutions provider, to reinvest your retirement benefits.
AG Ascento has come up with three solutions with varying investment horizons to further grow your supplementary pension nest egg.
Want to find out more? The AG Ascento team is standing by to provide you with individually-tailored reinvestment recommendations.