Understanding Retirement Annuities
A Retirement Annuity (RA) is a long-term savings product designed to provide you with a steady income during retirement. You contribute a monthly premium, and upon retirement—usually from age 60—you receive regular payments, typically for the rest of your life.
RAs are insurance-based products and are popular among individuals who want a guaranteed income stream after they stop working. You invest during your working years, and in return, the insurer pays you from your accumulated savings at retirement.
Retirement annuities are protected by law from creditors—even in the event of insolvency or bankruptcy. This ensures your savings remain secure until you reach retirement age. Additionally, NAMFISA supervises insurers and regularly monitors their financial strength to ensure they can meet their obligations to policyholders.
RAs are insurance-based products and are popular among individuals who want a guaranteed income stream after they stop working. You invest during your working years, and in return, the insurer pays you from your accumulated savings at retirement.
Retirement annuities are protected by law from creditors—even in the event of insolvency or bankruptcy. This ensures your savings remain secure until you reach retirement age. Additionally, NAMFISA supervises insurers and regularly monitors their financial strength to ensure they can meet their obligations to policyholders.
Types of Retirement Annuities
Within these, annuities may also be:
Saving through a Retirement Annuity comes with tax incentives:
Even if you are a member of an employer-sponsored retirement fund, it may not be enough to maintain your current standard of living after retirement. Inflation, medical expenses, and longer life expectancy mean you’ll likely need more savings.
If your current pension plan does not allow for additional contributions, opening an RA gives you the opportunity to top up your retirement savings.
If your current pension plan does not allow for additional contributions, opening an RA gives you the opportunity to top up your retirement savings.
Yes, you may contribute to multiple RA plans. However, keep in mind that only up to N$40,000 per year in total RA contributions is tax deductible.
Benefits of Retirement Annuities
Why Some People Retire Without Enough Savings
When purchasing an RA, follow these steps:
A Retirement Annuity is not just a savings plan—it’s a financial safety net for your future. The earlier you start saving, the greater your retirement security. Make sure to review your policy regularly, seek expert advice, and take control of your financial future today.
For more information or to verify if your insurer is registered, contact NAMFISA or visit: www.namfisa.com.na
For more information or to verify if your insurer is registered, contact NAMFISA or visit: www.namfisa.com.na
