Custodian Retiree Life Annuity is a series of regular monthly or quarterly payments (pension) made to a retiree (called an Annuitant) upon his retirement for the rest of his lifetime. Retiree life annuity is purchased using the RSA balance of the retiree at the time of retirement.

Custodian Retiree Life Annuity Plan is designed to meet the requirements of section 7 (1c) of the Pension Reform Act 2014 which allows a holder of Retirement Saving Account (RSA) upon retirement or attainment of age 50, whichever is later, to use the balance of his RSA to purchase an annuity from a Life Insurance Company licensed by NAICOM.

KEY FEATURES

• Annuity is payable for life
• Retiree Life Annuity pays for life irrespective of how long the retiree lives. However, for any retiree who dies early and has not received pension for at least ten years, his beneficiaries will receive the balance as dependant’s benefit.
• Regular payment is by standing order and payment is on an online, real times basis.
• Retirees no longer worry about outliving their income as annuity always outlives the retiree.
• Longevity  and investment risks are passed to the insurance company. Thus, no matter how long a retiree lives, he is not affected by the swings of the investment environment as his pension is guaranteed for life and will never be exhausted.