Old Mutual, an insurance company has launched a pioneering retirement product dubbed “Obra Pa Retirement Salary” to provide a guaranteed stream of income for retirees for the rest of their lives.
The “Obra Pa (which means ‘good life’) Retirement Salary” is designed to help retirees experience all the good things they want in retirement and help them to enjoy a customised plan tailored towards their unique needs while helping protect what matters most to them during retirement.
Speaking at the media launch, Group Chief Executive Officer of Old Mutual Ghana, Mr Tavona Biza said the company had the track record of tailoring products to meet the needs of its customers.
“This product was birth out of the need that was recognised quiet sometime back by society, by government, by industry players to recognise the need to offer retirees the peace of mind during their retirement,” he said.
Rita Boateng, Head of Marketing and Operations at Old Mutual Ghana, said, “Our offerings and engagements with our customers are centred around targeted solutions where the needs, aspirations and behaviour of customers take centre stage. Most retirees would want to have a consistent stream of income to help them live life on their own terms. However, life after retirement can be filled with uncertainties and unforeseen increases in the cost of living, which can take a toll on the savings of a Ghanaian retiree.”
The scheme essentially provides that solution to retirees by ensuring they optimally utilise their lump sums of tier 2 & 3 or any other source of income to sustain them for the rest of their lives.
In exchange for the payment of a lump sum upfront, Old Mutual commits to paying guaranteed monthly income to the retiree for the rest of their lives.
Besides paying out monthly salaries, Old Mutual pays retirees annual bonuses in the form of salary increases to policyholders (retirees).
To become a beneficiary, one must be 50 years and above and invest a minimum lump sum of ¢20,000 upfront.
“In addition to the monthly salaries for individual policyholders, couples can also enjoy Joint Spousal Benefits when they take the policy together. There is also a funeral cover for all policyholders,” Mrs Boateng added.
BY RAYMOND ACKUMEY